Broker: 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 (Maintain)
- Target Price: SGD 1.10 (8% upside from current price SGD 1.02)
- Key Idea: NetLink NBN Trust remains one of Singapore’s most defensive yield names, anchored by highly visible, regulated cash flows under the Regulated Asset Base (RAB) framework.
- Highlights:
- FY26 DPU (distribution per unit) rose 1% YoY to 5.42 SGD cents (~5% yield), despite a 13% YoY drop in earnings due to higher depreciation and interest costs.
- Management expects stable DPU going forward, supported by resilient cash flows.
- Capex will remain elevated for IT transformation, cybersecurity, and fibre duct expansion in new townships, but these investments are recoverable under the RAB framework.
- Structural drivers—like housing growth and data centre connectivity—support steady earnings and dividend resilience.
- NetLink’s balance sheet and free cash flow are strong enough to support 100% payout of distributable cash.
- Implication: Investors seeking stable dividend yield with low cyclicality and strong regulatory protection may consider NetLink NBN Trust as a core defensive holding. The new target price reflects DCF roll-forward and a lower WACC (6.4%).
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 : https://www.maybank.com/investment-banking
