$NetLink NBN Tr(CJLU.SI)$ $1.5 Target Price

 *NetLink NBN Trust (SGX: CJLU)* — Singapore's fiber monopoly — is a defensive yield play, ideal as a income generating stock from it's 5% dividend yield. 

Growth Catalyst for NetLink (CJLU)

*1. National 10Gbps Upgrade Cycle*

The biggest near-term catalyst.

- IMDA is investing up to *S$100M* to upgrade the NBN to *10Gbps* (10x current speeds). NetLink is working with telcos to roll this out from *now to 2026*.

- Target: *>500k households* on 10Gbps by 2028. Means more fiber deployment work, higher connection fees, and future cyber-security proofing.

### *2. Non-RAB (Non-Regulated) Revenue — The Actual Growth Engine*

Regulated residential fiber revenue was consistent in FY26. Growth came from non-RAB:

- *Ancillary projects*: Diversion, co-location, and enterprise projects drove revenue to S$413.4M in FY26 (+1.6% YoY) despite residential decline.

- This is higher margin and not capped by IMDA pricing.

### *3. Smart Nation + 5G + Enterprise Demand*

Long-term volume driver cited by management:

- *Non-Building Address Point (NBAP) and Segment connections*: Growing from smart cameras, smart street lighting, IoT sensors, 5G small cells, data centres.

- Even though total residential connections dipped due to housekeeping of inactive lines, NBAP/segment offset it in Q1 FY26.

- Major projects: Punggol Digital District, Jurong Innovation District, plus data centre connectivity.

### *4. Defensive Cash Flow + Rate Tailwind*

- Business model: Transparent, IMDA-regulated pricing, long-term contracts with Singtel, StarHub, M1, MyRepublic — *predictable cash flow*.

- FY26 DPU *5.42 cents (+1.1% YoY)* despite profit -12.6% due to higher depreciation/property tax, with 100% payout policy.

- Fiber longevity means low maintenance capex after initial build — network lasts decades without material upgrades. 

### *Outlook Numbers*

Analysts model modest but steady growth:

- Revenue: S$416M in FY26 → S$433M by FY29

- Earnings forecast to recover from S$83M to S$87M as costs stabilize.

- Consensus growth rate: 1.3% revenue, 1.5-1.9% earnings CAGR — this is about DPU stability, not capital gains.

*Bottom line: CJLU won't slow down nationwide 5Gfiber connectivity in current geopolitical uncertainty, as it will grows from (1).Government-funded 10Gbps upgrade (2).Non-RAB ancillary/NBAP projects tied to Smart Nation + 5G + data centres, to build Singapore into a SMART Nation.