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NetLink NBN Trust - OCBC Investment 2022-05-25: Stable Core Operations

NETLINK NBN TRUST (SGX:CJLU) | SGinvestors.io NETLINK NBN TRUST (SGX:CJLU)

NetLink NBN Trust - Stable Core Operations

  • IMDA (Infocomm Media Development Authority) pricing review is expected to be completed by early 2023.
  • Steady fibre connection growth; still seeking inorganic growth.
  • Fair value estimate of S$1.07 for NetLink NBN Trust.



NetLink's DPU for FY2022 slightly above expectations

  • NetLink NBN Trust (SGX:CJLU)’s FY22 revenue grew 2.5% y-o-y to S$377.6m, which was broadly within expectations. This was on the back of higher residential, NBAP and segment connections revenue, installation-related revenue, and ancillary project revenue, partially offset mainly by lower Central Office revenue.
  • Within 4QFY22, residential connections increased by 6k q-o-q (quarter-on-quarter), roughly similar to that clocked in 3QFY22. Non-residential connections growth was robust at ~0.5k q-o-q, with NBAP and segment connections registering notably fast growth at 37% y-o-y.
  • NetLink NBN Trust's Profit after tax declined 3.7% y-o-y to S$91.3m, due mainly to a remeasurement loss during the year. FY22 DPU grew 1.0% y-o-y to S$0.0513 cents, which is 0.8% above our expectations.


Fair value estimate of S$1.07 for NetLink Trust






OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2022-05-25
SGX Stock Analyst Report BUY MAINTAIN BUY 1.07 UP 1.060



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