NetLink NBN Trust - UOB Kay Hian 2023-03-20: A Potentially Higher Rate Due To Rising Rates & Costs, Upgrade To BUY

• The next regulatory review, which we believe may be on an uptrend, is expected to be completed by 1H23 and implemented by 2H23.
• Separately, NetLink's 9MFY23 core earnings (+24.2% y-o-y) came in above expectations, forming 81% of our full-year forecasts. This prompted us to raise FY23-25 net profit forecast for NetLink by 7-15%.
• - Read this at SGinvestors.io -

Expect next regulatory review by 1H23.

• - Read this at SGinvestors.io -
• NetLink is currently in discussion with the Infocomm Media Development Authority (IMDA) and at this juncture, as our base case, we expect the next return on regulated asset base (RAB) to be slightly higher, in view of the unprecedented elevated interest rates environment and expected higher cost base from inflationary pressures.

Safe haven; attractive 6.4% dividend yield.

• Read more at SGinvestors.io.

Chong Lee Len UOB Kay Hian Research | Llelleythan Tan Yi Rong UOB Kay Hian | https://research.uobkayhian.com/ 2023-03-20 SGinvestors.io

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