Broker Name: Maybank Research Pte Ltd
Date of Report: May 18, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
Stock: NetLink NBN Trust (NETLINK SP)
Action: BUY
Target Price: SGD 1.10 (up from previous SGD 1.05)
Highlights & Key Ideas:
- NetLink NBN Trust is recommended as a defensive yield play with highly visible, regulated cash flows and resilient dividends.
- FY26 distribution per unit (DPU) rose 1% YoY to 5.42 SGD cents, implying an attractive ~5% yield.
- Management expects stable DPU going forward, underpinned by regulated asset base (RAB) framework and resilient cash flows.
- Residential broadband demand remains firm, supported by Singapore’s pipeline of new housing units and ongoing construction projects.
- Capex will stay elevated into FY27 for IT upgrades, cybersecurity, and new township fibre ducts, but investments are recoverable under the RAB framework.
- NetLink’s regulated monopoly and tariff regime secures over 90% of revenue, with tariffs set until March 2029.
- Balance sheet and free cash flow support 100% payout of cash available for distribution.
- Risks include reduction in regulated returns at next review and rising interest rates impacting dividend appeal.
Call to Action: Focus on NetLink NBN Trust (NETLINK SP) with a BUY rating and target price of SGD 1.10. Attractive yield, defensive cash flows, and stable outlook make it a strong candidate for yield-seeking investors.
above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank website : www.maybank-keresearch.com
