NetLink NBN Trust - UOB Kay Hian 2023-05-22: FY23 Results In Line, Upcoming IMDA Review Expected By 2QFY24

• Driven by higher revenue contributions across most business segments, NetLink's FY23 net profit (+19.7% y-o-y) came in within our expectations, forming 101% of our full-year forecasts.
• The next regulatory review, which we believe may be on an uptrend, is expected to be completed by 2QFY24 (Sep 2023) and implemented by 4QFY24 (Mar 2024).
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FY23: Robust results and increased dividend.

• For FY23, NetLink NBN Trust (SGX:CJLU) reported higher revenue (+6.8% y-o-y) and net profit (+19.7% y-o-y), both forming 101% of our full-year forecasts and in line with expectations. The steady top-line growth was driven by higher broad-based revenue growth across most segments, offset by lower Central Office and manholes services revenue.
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• NetLink declared a 2HFY23 final dividend of 2.62 cents/unit (2HFY22: 2.57 cents), taking total FY23 dividends to 5.24 cents (FY22: 5.13 cents) and implying a FY23 dividend yield of around 5.8%, in line with our expectations.

Effects from higher interest rates.

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Chong Lee Len UOB Kay Hian Research | Llelleythan Tan Yi Rong UOB Kay Hian | https://research.uobkayhian.com/ 2023-05-22 SGinvestors.io

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