NetLink NBN Trust - Maybank Research 2023-05-20: Stable & Resilient Result; FY23 PAT Exceeds Expectation

• NetLink NBN Trust (SGX:CJLU)'s FY23 PAT rose 19.7% y-o-y to S$109.3m, ahead/in-line with MIBG/consensus expectations, accounting for 102%/101% of the respective FY23 forecasts. Bottomline increase was mainly contributed by higher revenue from core business and the absence of one-off re-measurement loss (S$12.4m) recorded in FY22.
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Ancillary projects contributed strongly to topline

• Revenue for FY23 increased (+6.8% y-o-y) due to stronger contributions from ancillary project revenue (+155% y-o-y), NBAP (Non-Building Access Point) & segment connections revenue (+29.8% y-o-y) and co-location revenue (+10.5% y-o-y). This was partially offset by lower Central Office revenue (-6.5% y-o-y to S$15.2m) due to a drop in rental space that reduced rental income.
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On the lookout for earnings accretive M&As

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Kelvin Tan Maybank Research | https://www.maybank-ke.com.sg/ 2023-05-20 SGinvestors.io

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