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

NetLink NBN Trust - 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%.
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Expect next regulatory review by 1H23.

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  • 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.

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Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @

Chong Lee Len UOB Kay Hian Research | Llelleythan Tan Yi Rong UOB Kay Hian | 2023-03-20

Read also UOB's most recent report:
2024-05-20 NetLink NBN Trust - Soft FY24 Results From Higher Costs; Overall Connections Continue To Grow.

Previous report by UOB:
2023-11-28 NetLink NBN Trust - IMDA Review Completed With Minor Impact; Expected to Start in FY25.

Price targets by 3 other brokers at NetLink Trust Target Prices.

Listing of research reports at NetLink Trust Analyst Reports.

Relevant links:
NetLink Trust Share Price History,
NetLink Trust Announcements,
NetLink Trust Dividends & Corporate Actions,
NetLink Trust News Articles


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