Analysis of Asian Pay Television Trust - 13.10% yield is high. Extremely high.

Current Price on 15th Dec 2015 = $0.63

• Yield = 13.10%  
• Price-to-book Ratio = 0.724
• Assets per unit = $1.794
• Debt per unit = $0.923 (including current liabilities)
• Gearing = 51.5%

Asian Pay Television Trust recently has its trading price dropping by quite a lot to $0.63 which caught my attention as their yield will be improved. Let's look at the current statistics.

The yield is at 13.10% which is fantastic. It is the highest grossing yield play at the moment. Moreover, its price-to-book ratio is at 0.724 which means we are buying at 26% discount to net assets. Gearing is at a high of 51.5% which is actually quite dangerous.

One thing which is not favourable is the fact that its assets are depreciating, which means their assets per unit will drop theoretically. I am not very sure whether this is correct but this is how I understand. How fast the assets per unit drops depends on how fast the assets depreciates. Moreover, they need to raise cash to fund their capital expenditure which is much more than a REIT.

Nevertheless, I think it is already priced in at a 26% discount-to-NAV which I am actually very comfortable. Moreover, with a yield of 13.10%, the risk may just be worth it to take. Looking seriously into this.