NetLink NBN Trust - UOB Kay Hian 2023-11-28: IMDA Review Completed With Minor Impact; Expected to Start in FY25

NetLink NBN Trust - IMDA Review Completed With Minor Impact; Expected to Start in FY25

NetLink Trust (SGX:CJLU) | SGinvestors.ioNetLink Trust (SGX:CJLU)
  • NetLink announced the completion of the IMDA review (effective Apr 2024), with prices for residential and NBAP connections dipping slightly. We expect near-term weakness in NetLink Trust's share price as total returns in the near term are adversely affected by the review (vs expectation of a higher return to compensate for inflation and higher interest rates).
  • - Read this at -

Long awaited closure of review on NetLink's interconnection prices by IMDA

  • - Read this at -
  • We understand that the WACC determined remained the same at 7% from the previous review while a capex reserve of S$40m was set aside for the new pricing period.
  • The revised prices are expected to take effect from 1 Apr 24 (at the start of 1QFY25) and we note that the new prices would not have a material impact on NetLink's FY24 DPU.

Marginally disappointing, expect near-term share price weakness.

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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 | 2023-11-28

Previous report by UOB:
2023-11-07 NetLink NBN Trust - Stable 1HFY24 Results, Upcoming IMDA Review Expected By End-3QFY24.

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


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