- 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 SGinvestors.io -
Long awaited closure of review on NetLink's interconnection prices by IMDA
- - Read this at SGinvestors.io -
- 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.
- Read more at SGinvestors.io.
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 @ https://www.utrade.com.sg/.
Chong Lee Len UOB Kay Hian Research | Llelleythan Tan Yi Rong UOB Kay Hian | https://research.uobkayhian.com/ 2023-11-28
Read also UOB's most recent report:
2024-11-06 NetLink NBN Trust - 1HFY25 Slight Miss As Margins Dropped.
Previous report by UOB:
2024-08-06 NetLink NBN Trust - Soft 1QFY25 Results In Line; Strong Connections Growth.
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
