NetLink NBN Trust - CGS-CIMB Research 2022-02-16: Stronger Connection Growth

NetLink NBN Trust - Stronger Connection Growth

  • Despite lower government grants, NetLink NBN Trust (SGX:CJLU)'s 3QFY22 net profit grew by 4.1% y-o-y, helped by stronger performance in higher-margin fibre business. NetLink NBN Trust saw faster fibre connection growth across all three fibre segments in 3Q.
  • Key focus this year will be on the outcome of NetLink NBN Trust’s negotiations with Infocomm Media Development Authority (IMDA) on the interconnection offer (ICO) pricing for the next review period (2023-2027).
  • Rising rates environment should alleviate concerns over a cut in regulatory WACC in upcoming interconnection pricing review.
  • We raise our FY22F earnings per share forecast for NetLink NBN Trust by 3.2% on stronger margin assumptions, and fine-tune our FY23-24F forecasts. Reiterate ADD call on NetLink NBN Trust with DDM-based target price of S$1.10.

Above is the excerpt from research report by CGS-CIMB.
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ONG Khang Chuen CFA CGS-CIMB Research | 2022-02-16
SGX Stock Analyst Report ADD MAINTAIN ADD 1.100 SAME 1.100

Read also CGS-CIMB's most recent report:
2022-05-18 NetLink NBN Trust - Stable Performance

Target prices by 4 other brokers at NetLink Trust Target Prices.
Listing of broker reports at NetLink Trust Analyst Report.

Relevant links:
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