May 12, 2021

Cory Diary : Netlink NBN Trust : Bao Jiak Business ?

Half Yearly Report just out. 5.1 cent dividend. Respectable returns. Far from Tech and Crypto and slightly lower than average reits returns iirc of different level risk. With a yield of 5.2% annualized, this is 1.2% higher than government guaranteed CPF SA account.

Netlink NBN Tr is a regulated business on how much they can profit. At current rate, is not significantly overvalued and I would think regulatory will continue to let it move along current direction for the foreseeable future.


Residential growth slowed to a crawl in this Q4FY21 but filled by NBAP/Segments during this Covid period. This mean leaving rooms for future residential opportunities. People who want stable income with some level of capital protection, this maybe good stock to be in considering most of it businesses are sole managed for practicality.

The current risk is 5G technology which may derailed their consumer side on last mile profits if they are not going to tap on their home fibre network. Nevertheless this tech is still far from many homes which has denser connect points, immediate needs for the next few years at current media download, normal use and gaming are quite sufficient for majority of people.

There is mention about more debt head room and new investment opportunities. This sounds interesting.


Note from report

"NetLink Group’s distribution policy is to distribute 100% of its cash available for distribution (“CAFD”), which includes distributions received from its wholly-owned subsidiary NetLink Trust (“NLT”). NLT’s distribution policy is to distribute at least 90% of its distributable income to the Trust after setting aside reserves and provisions 
for, amongst others, future capital expenditure (including the funding of a capital expenditure reserve fund pursuant to regulatory requirements), debt repayment and working capital as may be required. Distributions by NetLink Group will be made on a semi-annual basis, with the amount calculated as at 31 Mar and 30 Sep each year for the 6-month period ending on each of the said dates"


Cory
2021-0512



4 comments:

  1. Hope it remains stable for a long while
    Cheers

    ReplyDelete
    Replies
    1. So you just vested ? Yes, hit the point.

      Delete
    2. Good for you. I typically do not try IPO. Not bad despite for 5 years of different sizing.

      YEAR 2017 2018 2019 2020 2021
      NETLINK NBN TR $808 ($528) $14,890 $5,221 $1,860

      Delete