NetLink NBN (CJLU) AI Stock Analysis

• Market Cap: $3.51B
• Dividend Yield: 5.96%
• Average Volume (3M): 4.62M
• Price to Earnings (P/E): 36.7
• Beta (1Y): 0.10
• Revenue Growth: -1.04%
• EPS Growth: -7.55%
• Country: SG
• Employees: 338
• Sector: Communication Services
• Sector Strength: 71
• Industry: Telecommunications Services
• EPS (TTM): 0.01
• Shares Outstanding: 3,896,971,000
• 10 Day Avg. Volume: 5,071,330
• 30 Day Avg. Volume: 4,619,413
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.94
• Price Target Upside: 4.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: S$1.00 ▲(11.11%Upside)

NetLink NBN's strong financial performance and robust technical indicators drive a solid stock score. However, the high P/E ratio suggests potential overvaluation, tempered by a high dividend yield. The absence of earnings call and corporate event data limits further analysis.

Positive Factors

Dividend

NetLink declared a slightly higher final dividend, leading to an annualised dividend yield of around 5.9%.

Financial Stability

NetLink's strong balance sheet and liquidity levels generate stable cash flows, supporting future capital expenditures and distributions.

Monopoly

NetLink NBN Trust holds a monopoly in the Singapore fibre network, ensuring stable revenue streams.

Negative Factors

Regulatory Risk

A drop in regulatory WACC below the current 7% could result in a lower distribution per unit for unitholders.

Revenue

NetLink NBN Trust reported lower revenue, EBITDA, and PATMI for FY25, primarily due to lower interconnection prices and decreased ancillary project revenue.

Valuation Risk

A sharp rise in the risk-free rate from the base-case of 3.0% to 3.5% could lead to a lower valuation for NetLink NBN Trust.

NetLink NBN Business Overview & Revenue Model

Company Description

NetLink NBN Trust (CJLU) is a business trust listed on the Singapore Exchange, primarily engaged in the design, construction, operation, and maintenance of Singapore's fiber network infrastructure. The company plays a crucial role in the country's telecommunications sector, providing nationwide coverage with its extensive fiber optic network, which is essential for delivering ultra-fast broadband, IPTV, and other internet-based services to residential, commercial, and government entities.

How the Company Makes Money

NetLink NBN Trust generates revenue primarily through the provision of fiber network services. Its key revenue streams include recurring charges for use of its nationwide fiber network, which are paid by its customers, such as Internet Service Providers (ISPs), telecommunication companies, and businesses that require high-speed internet connectivity. The company also earns from connection fees for new subscribers and charges for ancillary services like network maintenance and infrastructure expansion. Significant partnerships with major ISPs and telecom companies in Singapore further bolster its earnings by ensuring a steady demand for its network services.

NetLink NBN Financial Statement Overview

Summary

NetLink NBN exhibits a stable financial profile with solid profitability and effective cash flow management. The company shows consistent growth, although rising debt levels and fluctuating free cash flow warrant attention.

Income Statement

NetLink NBN demonstrates consistent revenue growth over the past years, although the growth rate is moderate. The company maintains strong gross profit and net profit margins, indicating effective cost management and profitability. However, a slight decline in EBIT margin from 2023 to 2025 suggests potential pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a strong equity base with a healthy equity ratio, indicating financial stability. While the debt-to-equity ratio is manageable, there is a noticeable increase in total debt over recent years, which could pose a risk if not managed properly. Return on equity remains solid, showcasing effective utilization of shareholders' investment.

Cash Flow

Operating cash flow remains robust, consistently covering net income, which indicates strong cash generation capacity. However, free cash flow has shown a decline, suggesting increased capital expenditure that might affect liquidity in the short term. Overall, cash flow management appears sound but requires monitoring.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

NetLink NBN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:CJLU, the sentiment is Positive. The current price of 0.9 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.88, and above the 200-day MA of 0.85, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.81 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:CJLU.

NetLink NBN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Z74	76 Outperform	$67.17B	16.72	16.56%	2.85%	0.13%	404.98%
CJLU	75 Outperform	$3.51B	36.73	3.90%	5.96%	-1.04%	-7.55%
CC3	75 Outperform	$2.13B	13.84	40.65%	5.71%	-0.23%	11.17%
Sector *	59 Neutral	C$3.43B	8.32	-17.94%	5.32%	-2.61%	-25.43%

NetLink NBN Corporate Events

NetLink NBN Trust Honored at ASEAN Corporate Governance Awards 2025

NetLink NBN Trust has been recognized at the ASEAN Corporate Governance Awards 2025, being featured in the ASEAN Top 50 and Top 5 Singapore publicly listed companies. This accolade highlights the company’s commitment to high corporate governance standards, transparency, and best practices, aiming to deliver long-term value for stakeholders. The recognition is part of the ASEAN Corporate Governance Scorecard, a benchmarking initiative supported by the Asian Development Bank to enhance governance standards and investor confidence across ASEAN.

The most recent analyst rating on (SG:CJLU) stock is a Buy with a S$0.98 price target. To see the full list of analyst forecasts on NetLink NBN stock, see the SG:CJLU Stock Forecast page.

NetLink NBN Trust to Release Q1 2025 Financial Update

NetLink NBN Management Pte. Ltd. announced that it will release a media statement and analyst update for the first quarter ending 30 June 2025 after trading closes on 31 July 2025. This announcement may provide insights into the company’s operational performance and strategic positioning, potentially impacting stakeholders and market perceptions.

The most recent analyst rating on (SG:CJLU) stock is a Buy with a S$0.98 price target. To see the full list of analyst forecasts on NetLink NBN stock, see the SG:CJLU Stock Forecast page.