InvestIdeas

Singtel's NetLink IPO set to price near low end at 81 cents, raising $2.3 bil: IFR
https://www.theedgesingapore.com/singte ... 23-bil-ifr

netlink-nbn-trust-reports-49-higher-forecast-earnings-13-mil-jan-19-end-sept
https://www.theedgesingapore.com/netlin ... 9-end-sept

NetLink NBN Trust reports 3Q earnings of $21.7 mil; 32.5% higher than IPO forecast
https://www.theedgesingapore.com/netlin ... o-forecast

Netlink Trust beats forecast by 5% with FP18 DPU of 3.24 cents
https://www.theedgesingapore.com/netlin ... -324-cents

NetLink NBN Trust exceeds projected 1Q19 earnings by 26.9% at $19 mil
https://www.theedgesingapore.com/netlin ... 269-19-mil

not vested

NetLink NBN Trust: A shelter in times of trouble

It was announced last week that a digital platform named CODEX, would amongst other things, feature a government data architecture for common data standards and formats that would facilitate seamless data sharing between agencies.

In our view, this is a concrete step in the Smart Nation and Digital Government Group fulfilling its mandate to centralise coordination between agencies in order to hasten the implementation of the Smart Nation programme.

This would be beneficial for NLT NBN, as an expedited schedule would present quicker additional opportunities for NLT NBN to leverage its nationwide fibre network.

Separately, in TPG’s FY18 earnings call last month, we note that the group remains on track to achieve the required outdoor service milestone of coverage by end-2018 in Singapore.

TPG’s entry, while a headwind (of varying degrees) for the incumbents, is actually positive for NLT NBN, as we have outlined in our previous report. With macro concerns ratcheting up, defensive names like NLT NBN have proven to be resilient, relative to a number of benchmarks.

We do acknowledge the inherent concerns with NLT NBN’s regulated business structure, but these are relatively unaffected by the ongoing trade tensions. We continue to stay constructive on NLT and retain our fair value estimate of S$0.90.

Source: OCBC

not vested

SI RESEARCH: 4 REASONS TO LIKE ABOUT NETLINK NBN TRUST

by Don Low

1. Defensive Nature
Netlink NBN Trust is the largest fibre network operator in Singapore.

As of 2Q19, the Trust has connected 1.24 million residential units and 45,514 non-residential premises, representing a market share of 90 percent and 35 percent respectively.

2. Fibre Of Smart Nation
Non-Building Access Points (NBAP) segment is seeing the fastest growth rates.
4th Mobile Operator is Potential Customer.

3. Evidence Of Strong Execution
Revenue 40% yoy (Sin$90m);

4. Better Yield At A Bargain
Yield 6%

Source: Shares Investments

http://aspire.sharesinv.com/59489/si-re ... nbn-trust/

NetLink NBN Trust beats 3Q projection by 18% with earnings of $19.6 mil
https://www.theedgesingapore.com/netlin ... gs-196-mil

not vested

Netlink NBN Trust: Your Go-To Stock For High Yield

According to DBS, the market is now on a search for high yield with the Fed turning more dovish. This contrasts with previous concerns on higher than expected 10-year bond yields.

Netlink NBN Trust is currently trading at approximately 6.3 percent FY20F yield compared to the average yield of 6.0 percent offered by large-cap industrial S-REITs.

DBS notes that given the regulated nature of its business and no lack of debt headroom to fund acquisitions, Netlink NBN Trust should be trading at a lower yield. This means that there is room for Netlink NBN Trust’s share price to take off.

Moreover, one unique advantage of the over REITs and Business Trusts is that a potential rise in the cost of capital might lead to higher regulated returns from 2022 onwards, translating into higher distributions.

BUY, TP $0.87; Current share price $0.825

Source: Aspire

not vested

NetLink NBN Trust (NETLINK SP)

FY19: Earnings Beat Management’s Projections

4QFY19 net profit of S$20m exceeds management’s projection by 12% on the back of a 3% qoq growth in residential connection and good cost discipline.

FY19 net profit rose to S$77.4m, surpassing projection by 18%.

A DPU of 2.44 S cents was declared for the quarter, bringing FY19 DPU to 4.88 S cents, 5% higher than projection.

Maintain BUY as Netlink offers an attractive shelter against external volatility.

Target price: S$0.92.

Source: UOBKH

https://research.uobkayhian.com/content ... 90375b9ee0