NetLink NBN (CJLU) AI Stock Analysis

• Market Cap: $3.76B
• Dividend Yield: 5.47%
• Average Volume (3M): 5.27M
• Price to Earnings (P/E): 39.4
• Beta (1Y): 0.14
• Revenue Growth: -1.04%
• EPS Growth: -7.55%
• Country: SG
• Employees: 338
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): N/A
• Shares Outstanding: 3,896,971,000
• 10 Day Avg. Volume: 4,942,320
• 30 Day Avg. Volume: 5,267,806
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 10.07
• Enterprise Value/Gross Profit: 12.33
• Enterprise Value/Ebitda: 14.35
• 1Y Price Target: $1.04
• Price Target Upside: 5.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: S$1.00 ▲(2.04% Upside)

NetLink NBN's stock score is primarily driven by strong financial performance and positive technical indicators. The high dividend yield adds value, but the high P/E ratio raises valuation concerns. The absence of earnings call and corporate events data limits the analysis to these key factors.

Positive Factors

Strategic Infrastructure Investment

The new Seletar Central Office enhances network resilience and supports regional development, strengthening NetLink's infrastructure and market position.

Board Governance Enhancement

The addition of a new independent director enhances corporate governance and board diversity, aligning with best practices and potentially improving strategic oversight.

Stable Financial Position

A stable financial position with manageable leverage supports long-term operational stability and financial flexibility, enabling strategic investments.

Negative Factors

Revenue Growth Challenges

Declining revenue growth indicates potential challenges in market expansion, which could impact future profitability and competitive positioning.

Decreased Cash Flow

Reduced cash flow growth may limit the company's ability to fund new projects and investments, affecting long-term growth and operational flexibility.

Profit Decline

A decline in profit, despite revenue growth, suggests rising costs and operational inefficiencies, which could hinder future financial performance.

NetLink NBN Business Overview & Revenue Model

Company Description

NetLink NBN (CJLU) is a leading telecommunications infrastructure provider in Singapore, focusing on the design, construction, and operation of a fiber optic network. The company plays a crucial role in the country's digital landscape by providing high-speed broadband connectivity to residential and commercial customers through its open-access network. NetLink NBN is primarily involved in the deployment of the Next Generation Nationwide Broadband Network (NGNBN) and offers a range of services including fiber leasing and connectivity solutions to various retail service providers.

How the Company Makes Money

NetLink NBN generates revenue primarily through the leasing of its fiber infrastructure to retail service providers who offer broadband services to end-users. This leasing model allows the company to earn recurring income based on usage and service agreements. Additional revenue streams include installation fees, maintenance contracts, and other ancillary services related to network management. The company's financial performance is bolstered by its strategic partnerships with major telecom operators and service providers, enabling a diversified customer base and stable cash flow. Furthermore, government initiatives to expand broadband connectivity in Singapore support NetLink NBN's growth and revenue opportunities.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	411.16M	407.00M	411.28M	405.04M	377.95M	370.39M
Gross Profit	335.58M	380.08M	381.83M	331.36M	314.76M	307.47M
EBITDA	288.47M	302.63M	309.18M	302.58M	266.44M	270.88M
Net Income	95.35M	95.35M	103.21M	109.25M	91.26M	94.81M
Balance Sheet
Total Assets	3.86B	3.86B	3.92B	4.01B	4.03B	4.12B
Cash, Cash Equivalents and Short-Term Investments	177.57M	177.57M	182.91M	198.96M	149.82M	170.54M
Total Debt	887.18M	887.18M	796.60M	765.25M	702.13M	703.53M
Total Liabilities	1.47B	1.47B	1.39B	1.38B	1.32B	1.32B
Stockholders Equity	2.39B	2.39B	2.52B	2.63B	2.72B	2.80B
Cash Flow
Free Cash Flow	123.95M	115.03M	156.29M	188.95M	184.85M	204.27M
Operating Cash Flow	258.71M	258.71M	288.61M	285.69M	258.73M	264.51M
Investing Cash Flow	-143.65M	-143.65M	-127.63M	-96.73M	-73.86M	-60.25M
Financing Cash Flow	-120.39M	-120.39M	-178.77M	-138.07M	-205.58M	-202.35M

NetLink NBN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.98 is above the 20-day moving average (MA) of 0.97, above the 50-day MA of 0.95, and above the 200-day MA of 0.89, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.61 is Neutral, neither overbought nor oversold. The STOCH value of 85.00 is Negative, 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
CJLU	―	$3.76B	39.39	3.90%	5.47%	-1.04%	-7.55%
Z74	―	$71.13B	17.71	16.56%	2.87%	0.13%	404.98%
CC3	―	$1.94B	15.78	32.00%	5.30%	0.83%	-16.65%
S7OU	―	S$184.25M	13.25	1.89%	―	-4.10%	―
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

NetLink NBN Corporate Events

NetLink NBN Boosts Singapore’s Connectivity with New Seletar Central Office

NetLink NBN Management Pte. Ltd. has inaugurated the Seletar Central Office, a $110 million investment aimed at bolstering the resilience of Singapore’s Nationwide Broadband Network. This new facility, located strategically to serve the northern regions of Singapore, underscores NetLink’s commitment to supporting the country’s digital infrastructure needs and is expected to facilitate significant regional development, including new housing, transport, and industrial projects.

NetLink NBN Trust Announces Board Changes to Enhance Governance

NetLink NBN Trust has announced changes to its Board of Directors, with Mr. Chng Lay Chew set to join as an Independent Non-Executive Director and member of the Audit and Remuneration Committees effective October 2025. This move aligns with the company’s commitment to corporate governance and board diversity, as Mr. Yeo Wico steps down after nearly nine years of service, reflecting best practices in director independence.

NetLink NBN Trust Issues S$300 Million Notes Under Debt Programme

NetLink NBN Trust, through its subsidiary NetLink Treasury Pte. Ltd., has issued S$300 million in notes due 2035 under its S$1 billion Multicurrency Debt Issuance Programme. The notes, guaranteed by the Trustee-Manager, will be listed on the Singapore Exchange, with DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited as joint lead managers. This issuance strengthens NetLink NBN’s financial position and underscores its strategic focus on expanding its network infrastructure, with implications for stakeholders regarding the stability and governance of the Trustee-Manager.

NetLink NBN Trust Announces S$300 Million Bond Subscription

NetLink NBN Trust has announced a bond subscription agreement with NetLink Trust and DBS Bank Ltd. to issue S$300 million in bonds, funded by the proceeds from its Series 001 Notes. The bonds, with a 20-year tenor and a fixed interest rate of 10.5% per annum, will finance and partially refinance NetLink Trust’s onshore infrastructure projects. If the bonds qualify as project debt securities, interest income from them will be exempt from Singapore income tax, potentially allowing NetLink NBN Trust to distribute tax-free cash flow to its unitholders.

NetLink NBN Trust Prices S$300 Million Notes for Strategic Financial Growth

NetLink NBN Trust has announced the pricing of S$300 million in notes due 2035, as part of its S$1 billion Multicurrency Debt Issuance Programme. The proceeds from this issuance will be used for general corporate purposes, including refinancing existing borrowings and financing investments, acquisitions, and capital expenditures, potentially strengthening the company’s financial position and operational capabilities.

NetLink NBN Trust Holds Eighth Annual General Meeting

NetLink NBN Trust held its Eighth Annual General Meeting, where the Company Secretary announced the proceedings and the structure involving the AGM of Singapore NBN Trust. The meeting emphasized the role of DBS Trustee Limited in managing the TM Shares Trust, ensuring that unitholders have a say in the voting rights exercised by the Share Trustee. This structure underscores NetLink NBN Trust’s commitment to transparency and stakeholder engagement, reinforcing its position in the market as a reliable and accountable entity.

NetLink NBN Trust Sees Revenue Growth Amid Decline in Profit

NetLink NBN Trust reported a 1.9% increase in revenue to $102.8 million for Q1 FY26, driven by higher ancillary project and installation-related revenue. However, EBITDA fell by 1.9% to $72.0 million due to increased operating expenses, and Profit After Tax decreased by 9.2% to $23.3 million, impacted by higher depreciation from an expanded asset base. The total number of connections saw a slight decline, attributed to the removal of inactive residential connections and churn in the non-residential segment, although growth in NBAP and segment connections continued due to demand from Smart Nation and enterprise projects.