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

• 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 an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-02-12 NetLink NBN Trust 3QFY25 - Soft Results On Lower Prices & Higher Operating Costs.

Previous report by UOB:
2024-11-06 NetLink NBN Trust - 1HFY25 Slight Miss As Margins Dropped.

Price targets by 2 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 Dividend Payout Dates & Corporate Actions,
NetLink Trust News