by winston » Thu Oct 11, 2018 9:16 am
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
It's all about "how much you made when you were right" & "how little you lost when you were wrong"