NetLink NBN Trust - Phillip Securities 2024-11-06: Resilient Cash Flows

• NetLink NBN Trust's DPU for 1HFY25 is still dependent on S$45mil borrowing to sustain dividends. This is due to the jump in capex for the new Seletar central office. When capex normalises from the current S$130mil to S$70mil, we expect a free cash flow of S$210mil to sustain NetLink NBN Trust's distribution without utilising debt.
• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -

The Positive

Higher residential bandwidth.

• With promotional activities, residents switch from 1GBps to 10GBps (with WiFi 7) fibre bandwidth plans. NetLink benefits from increased installation revenue and telcos requiring more space, cooling, and power at the co-location centres. It also necessitates adding a central office in Seletar where NetLink can generate (regulated) returns from the additional capex.

The Negative

Higher operating cost.

• Read more at SGinvestors.io.

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

Read also Phillip's most recent report:
2025-05-19 NetLink NBN Trust - More Leverage Needed.

Price targets by 4 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