Report Summary

• Netlink NBN Trust reported stable to positive growth in connection counts and revenues across segments for 3QFY3/26, supported by ancillary project revenue and ongoing mobile network rollout.
• Management confirmed Netlink’s potential participation in the Jurong Island data centre campus, with incremental revenue expected from new connections, while dividend yield remains attractive at 5.5% and forecasts are maintained despite short-term profit volatility from higher finance and depreciation costs.
• Netlink’s ESG performance is positive, with 100% fibre coverage, reduced emissions, and a lower employee turnover rate, positioning the company well for future regulatory and market developments.
• The report maintains an “Add” rating with a target price of S\$1.05, highlighting key catalysts such as government projects and new HDB developments, but also noting risks from regulatory pricing and construction disruptions.
• Peer comparison shows Netlink’s dividend yield and operational margins remain competitive within the regional telco sector.