Excerpts from CGSCIMB report

Netlink NBN Trust (SGX: CJLU)

Netlink NBN Trust (NLT)’s 1H23 results were in line; core net profit/DPU at 52%/50% of our FY23F forecast. DPU growth reaccelerated to +2.3% yoy (1H23: 2.62 Scts). Ancillary project revenue the key driver for 1H topline growth. NLT continued to see healthy connection growth across all three fibre connection segments. ICO review likely to only be completed in 1HCY23. Reiterate Add with lower TP of S$0.92 on higher cost of equity assumptions.

Netlink NBN Trust 1H23 results in line with expectations

Netlink NBN Trust’s 1H23 core net profit of S$54.6m (+3.9% yoy) was in line with expectations, at 52%/54% of our/Bloomberg consensus FY23F estimates. Topline grew 6.2% yoy to S$199.6m, driven by higher ancillary project revenue and connections revenue, though partially offset by lower central office revenue. Core EBITDA grew 4.7% yoy, in tandem with the higher revenue, reflecting...