NetLink Trust (SGX: CJLU): Stable Expansion?

NetLink NBN Trust (NetLink) remains the bedrock of Singapore's digital economy. The Trust reported a 1.1% revenue increase for H1 FY2026, supported by higher co-location revenue as Singapore upgrades to 10Gbps speeds. While Net Profit dipped due to Seletar CO depreciation, its core cash flow remains robust.

💡 Growth Drivers & "So What?"

• Smart Nation 2.0: NetLink is the foundational infrastructure for Singapore's 10Gbps connectivity push, providing long-term volume growth in co-location and connection services.

• Regulated Assets (RAB): As the sole regulated fibre infrastructure provider, its price-review framework offers stability that few other telcos can match.

• Debt Optimization: The issuance of S$300M in 10-year fixed-rate notes at 2.65% effectively locked in low costs for a decade, protecting unitholders from rate spikes.

💰 Dividend & Distribution History

NetLink's distribution policy focuses on 100% of its cash available for distribution (CAFD).

• H1 FY26 Interim Distribution: 2.71 cents (Paid Nov 2025), an increase from 2.68 cents in H1 FY25.

• Payout Trend: Dividends have risen steadily from 2.57 cents in 2022 to the current 2.71 cents, yielding ~5.5%.

🚩 Potential Risks

• IMDA Price Reviews: Periodic reviews by IMDA could impact regulated prices and margins.

• Residential Churn: Slowing residential connection growth as the market reaches saturation.

🏁 Market Sentiment: NEUTRAL 🟡

• Target Price: S$0.93 – S$1.03 (Consensus)

• Current Price: S$0.985 (As of Jan 23, 2026)

• Why? NetLink is an ideal yield-play for conservative portfolios. While growth is modest, the utility-like stability and 5.5% yield make it a cornerstone for passive income.