- NetLink NBN Trust (SGX:CJLU)'s FY23 revenue and EBITDA were within expectations, at 101%/103% of our FY23e forecasts. A diversion revenue spike of 130% y-o-y in 4Q23 surpassed our expectations.
- - Read this at SGinvestors.io -
- The new fibre rates NetLink can charge its customer is expected to be announced soon. Our base case is that fibre rates will be nudged marginally lower. Any impact on dividends is muted due to the ability to raise borrowings.
- Our FY24e EBITDA forecast for NetLink is raised by 2% and DCF-based target price for NetLink is nudged up to S$0.87 (previously S$0.85). The distribution yield is sustainable from stable operating cash-flows and access to financing.
The Positive
Of the S$7.5mil improvement in revenue, $4.7mil is from diversion.
- - Read this at SGinvestors.io -
- Increased construction activity will speed up the completion of new homes and will aid in residential fibre connections.
The Negative
Extra capex and interest expenses jump.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2023-05-22
Read also Phillip's most recent report:
2023-11-08 NetLink NBN Trust - Stable As Usual.
Previous report by Phillip:
2023-08-22 NetLink NBN Trust - Waiting For Tariff Review; Distribution Yield Sustainable.
Price targets by 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
