•     Results broadly in-line; 2HFY21 EBITDA surge due largely to lower amount of write-off of capitalised project costs

•     Exploring potential investments with a focus on telecoms infrastructure opportunities

•     Maintain FV of SGD1.10

NetLink NBN Trust (NLT NBN) designs, builds, owns and operates the passive fibre network infrastructure of Singapore’s Next Gen NBN. With the increasing usage of fibre broadband services for day-to-day activities driven by growing demand for connectivity and rapid broad-based growth in data consumption, we believe NLT NBN has a resilient business model, and hence able to weather through various economic cycles given the defensive nature of its income streams. Furthermore, we expect NLT NBN to be a key participant of growth in other connected services within the non-residential and NBAP space, especially with Singapore’s push to transform into a digital economy.

Source: OCBC Research - 14 May 2021