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NetLink NBN Trust (SG:CJLU)
SGX:CJLU

NetLink NBN (CJLU) AI Stock Analysis

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SG

NetLink NBN

(SGX:CJLU)

Rating:65Neutral
Price Target:―
NetLink NBN's overall stock score reflects its solid financial performance and attractive dividend yield, balanced against a high P/E ratio suggesting potential overvaluation. The mild upward trend in the stock price supports a positive outlook, although the lack of detailed technical indicators and earnings call data limits deeper insights. The company is positioned well in the telecommunications sector with stable operations and profitability, but potential improvements in cash flow management and return on equity could enhance future performance.
Positive Factors
Dividend Yield
NetLink declared a slightly higher final dividend, resulting in an annualised dividend yield of around 5.9%.
Monopoly Advantage
NetLink NBN Trust holds a monopoly in Singapore fibre network, supported by predictable revenue streams and a strong balance sheet.
Negative Factors
Regulatory Risks
A drop in regulatory WACC below the current 7% could result in a lower distribution per unit for its unitholders.
Revenue Decline
NetLink NBN Trust reported lower revenue, EBITDA, and PATMI for FY25, primarily due to lower interconnection prices and decreased ancillary project revenue.

NetLink NBN (CJLU) vs. iShares MSCI Singapore ETF (EWS)

NetLink NBN Business Overview & Revenue Model

Company DescriptionNetLink NBN Trust, listed on the Singapore Exchange under the ticker symbol CJLU, is a key player in Singapore's telecommunications infrastructure sector. The company owns, designs, builds, and operates the passive fiber network infrastructure, which is the foundation of Singapore's Next Generation Nationwide Broadband Network (Next Gen NBN). NetLink NBN's core services include providing nationwide coverage of residential, non-residential, and non-building address point fiber connections, facilitating high-speed internet access for consumers and businesses across Singapore.
How the Company Makes MoneyNetLink NBN Trust generates revenue primarily through the leasing of its extensive fiber network to retail service providers (RSPs), which in turn offer broadband, voice, and pay-TV services to end-users. The company's key revenue streams include installation-related revenue, connection fees, and recurring monthly charges for the use of its fiber network infrastructure. Significant partnerships with major RSPs, such as Singtel, StarHub, and M1, underpin its earnings, as these companies depend on NetLink's network to deliver broadband services. Additionally, NetLink benefits from regulatory frameworks that ensure a stable and predictable revenue environment.

NetLink NBN Financial Statement Overview

Summary
NetLink NBN exhibits solid financial performance with consistent revenue growth and strong profitability margins. The balance sheet is stable with a healthy equity position and manageable debt levels, though return on equity could be optimized. While cash flow operations are strong, the decline in free cash flow growth suggests potential areas for improvement in cash management.
Income Statement
75
Positive
NetLink NBN has shown consistent revenue growth with a revenue growth rate of 1.54% from 2023 to 2024. The gross profit margin is solid at 40.18%, and the net profit margin is 25.09%, indicating strong profitability. The EBIT margin stands at 29.76%, and the EBITDA margin is notably high at 75.20%, demonstrating efficient operational performance.
Balance Sheet
70
Positive
The company's balance sheet reflects a healthy equity ratio of 64.42%, suggesting financial stability. The debt-to-equity ratio is 0.32, indicating manageable leverage levels. Return on equity is 4.09%, which, although positive, could be improved to enhance investor returns.
Cash Flow
68
Positive
NetLink NBN has experienced a decline in free cash flow growth rate, dropping by 17.30% from 2023 to 2024. The operating cash flow to net income ratio is strong at 2.80, indicating robust cash-generating operations. However, the free cash flow to net income ratio of 1.51 shows room for improvement in cash flow efficiency.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
414.66M411.28M405.04M377.95M370.39M370.19M
Gross Profit
340.05M381.83M331.36M314.76M307.47M138.23M
EBIT
340.05M122.38M124.79M96.09M104.18M101.58M
EBITDA
294.15M309.18M302.58M266.44M270.88M258.98M
Net Income Common Stockholders
98.81M103.21M109.25M91.26M94.81M78.11M
Balance SheetCash, Cash Equivalents and Short-Term Investments
138.76M182.91M198.96M149.82M170.54M168.62M
Total Assets
4.28B3.92B4.01B4.03B4.12B4.21B
Total Debt
635.33M796.60M765.25M702.13M703.53M678.89M
Net Debt
496.71M613.69M566.30M552.32M533.00M510.27M
Total Liabilities
1.25B1.39B1.38B1.32B1.32B1.30B
Stockholders Equity
3.03B2.52B2.63B2.72B2.80B2.91B
Cash FlowFree Cash Flow
153.24M156.29M188.95M184.85M204.27M186.98M
Operating Cash Flow
280.00M288.61M285.69M258.73M264.51M262.52M
Investing Cash Flow
-133.84M-127.63M-96.73M-73.86M-60.25M-75.53M
Financing Cash Flow
-135.07M-178.77M-138.07M-205.58M-202.35M-166.98M

NetLink NBN Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.87
Price Trends
50DMA
0.87
Negative
100DMA
0.85
Positive
200DMA
0.85
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
41.71
Neutral
STOCH
7.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:CJLU, the sentiment is Neutral. The current price of 0.87 is below the 20-day moving average (MA) of 0.88, below the 50-day MA of 0.87, and above the 200-day MA of 0.85, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.71 is Neutral, neither overbought nor oversold. The STOCH value of 7.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:CJLU.

NetLink NBN Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SGCC3
70
Outperform
$1.96B12.7140.65%5.27%-0.23%11.17%
65
Neutral
$3.39B35.513.90%5.95%0.40%-8.33%
61
Neutral
$14.60B5.88-4.32%3.68%2.75%-30.55%
SGZ74
59
Neutral
$64.37B16.0216.56%4.29%-2.10%-103.46%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:CJLU
NetLink NBN
0.87
0.09
11.40%
SG:Z74
Singtel
3.87
1.46
60.85%
SG:CC3
StarHub
1.14
-0.05
-3.96%

NetLink NBN Corporate Events

NetLink NBN Trust Reports Stable Revenue Amid Profit Decline
Feb 10, 2025

NetLink NBN Trust reported stable revenue for the nine months ending December 2024, with a slight reduction of $1.3 million primarily due to lower non-RAB revenue offset by higher installation-related income. The number of connections in various segments, including residential and non-residential, showed slight growth. However, EBITDA and profit after tax were down by 5.1% and 12.9% respectively, attributed to lower revenue, non-operating income, and higher operating costs compared to the previous period.

NetLink NBN Announces Change in Company Secretary
Feb 10, 2025

NetLink NBN Management Pte. Ltd., the trustee-manager of NetLink NBN Trust, has announced a change in company secretaries effective from 11 February 2025. Ms. Phyllis Yan Li Fang will assume the role of Secretary, replacing Mr. Albert Lim Aik Seng. This change is part of the company’s ongoing operational adjustments, potentially affecting its administrative functions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.