Thailand Future Fund (SET: TFFIF) has demonstrated resilience against headwinds impacting mobility, posting modest year-on-year gains in its third-quarter fiscal 2025 results, according to a recent analysis by Kiatnakin Phatra Securities (KKPS). Reporting a net income of THB 516 million – translating to about a 2% increase in distributable income to THB 515 million – the fund has accumulated THB 1.6 billion in distributable income over the first nine months of FY25, representing an 8% growth from the year-ago period and achieving 74% of KKPS’ full-year projection.
KKPS maintains its ‘Buy’ rating on TFFIF, emphasizing the fund’s stability despite ongoing challenges that could dampen traffic volumes on its Chalong Rat and Burapha Withi Expressway. These include a muted domestic consumption environment, a slowdown in arrivals of international tourists, and unusually heavy rainfall coinciding with the recent normalization of expressway toll rates beginning March 2024. Nevertheless, KKPS sees the current unit price as attractive given the fund’s defensive characteristics.
Income derived from TFFIF’s revenue transfer agreement climbed 2% year-on-year to THB 539 million, even as the impact of toll adjustments and mobility constraints persisted. Operating expenses were well-controlled, falling 3% year-on-year to THB 26 million. As a result, net distributable income for the quarter reached THB 515 million, similarly up by 2%. Assuming a full payout, the fund’s dividend per unit (DPU) for the third quarter would be THB 0.11, bringing the cumulative DPU for the first nine months to THB 0.35, an increase of 8% compared to the previous year.
On the yield front, TFFIF stands out with an estimated fiscal 2025 DPU yield of 7.8% at the current price. This implies an attractive 350 basis point spread over the US 10-year Treasury yield, exceeding the fund’s historical average and indicating limited downside risk for investors, according to KKPS who maintain a price objective of THB 7.00 per share.
