NetLink NBN Trust - OCBC Investment 2024-05-20: Stable Distribution

• NetLink NBN Trust (SGX:CJLU)’s 2HFY24 revenue grew 1.0% y-o-y to S$206.0m, mainly driven by higher connections, installation-related, and other revenue. This was, however, partially offset by lower ancillary project revenue.

In-line set of results

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• A final dividend of S$0.0265 per share was declared, up 1.1% y-o-y. This brings the total NetLink Trust's distribution for FY24 to S$0.0530 (+1.1% y-o-y).

Fibre connections across key segments continued to grow

• Fibre connections across NetLink’s key segments continued to grow in FY24, with residential/non-residential/non-building address points (NBAP)/segment connections growing 2%/3%/10%/25% y-o-y.
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  • Residential connections remained stable and the key contributor, with its revenue growing 1.3% y-o-y in FY24, contributing to 60% of total revenue.
• Revenue from ancillary projects fell 10.8% y-o-y to S$22.9m, as the availability of project opportunities fluctuates from y-o-y.

Attractive dividend yield of ~6%

• Read more at SGinvestors.io.

Above is an excerpt from a report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.

Read also OCBC's most recent report:
2024-11-06 NetLink NBN Trust - Resilient Dividend Distribution.

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 Dividend Payout Dates & Corporate Actions,
NetLink Trust News