Asia Pay TV

Asia Pay TV (APTT): Macquarie reiterates O/p, TP $1.09. Notes recent reports in local Taiwanese press rehashing the regulators’intentions on tiered pricing support the thesis that policies are skewedmore toward consolidation and quality improvement rather than spurringprice wars. Believes, against this backdrop, APTT’s asset, TBC Group, as well as the other largeoperators, is best placed relative to smaller operators. Tips APTT’s 9.3% FY14 distribution yield remains attractive relative to theSingapore REIT and trust market, and is supported by an 8% FCF yield.