Netlink NBN Trust (NLT) is the only fibre network with nationwide residential coverage in Singapore. NLT designs, builds, owns and operates the passive fibre network infrastructure which includes ducts, manholes, fibre cables and central offices. As of 31 December 18, NLT supports close to 1.3mn residential end-user connections and more than 45,000 non-residential end-user connections and 1,462 Non-Building Address Point (NBAP) across Singapore. NLT owns more than 16,000 km of ducts, 62,000 manholes, 76,000 km of fibre cables and 33,000sqm of co-location space.
We initiate coverage on NLT with a target price of S$0.89
We initiate coverage on NLT with a target price of S$0.89. We used a DCF approach in our valuation because of the regular stream of cash generated from NLT’s fibre business. Our valuation is based on a WACC of 6% and a terminal growth rate of 1%.