"NetLink NBN Trust's (SGX:CJLU) Intrinsic Value Is Potentially 90% Above Its Share Price"

LISTEN UP, INVESTORS! We've got a hidden gem in the telecom sector that's flying under the radar, and it's time to shine a spotlight on it. netlink NBN Trust (SGX:CJLU) is trading at a massive discount to its intrinsic value, and if you're not paying attention, you're missing out on a potential goldmine. Let's dive in and see why this stock is a no-brainer buy!



WHY IS NETLINK NBN TRUST A BUY?

1. INTRINSIC VALUE VS. SHARE PRICE: As of March 8, 2025, NetLink NBN Trust's intrinsic value based on projected free cash flow (FCF) is S$0.97, while the current stock price is S$0.86. That's a 90% discount, folks! The market is undervaluing this stock, and it's time to capitalize on this opportunity.

2. DIVIDEND YIELD: This stock pays an annual dividend of S$0.05, which amounts to a dividend yield of 6.23%. That's a massive yield, and it's attracting income-focused investors like bees to honey. Don't miss out on this steady stream of cash!

3. FINANCIAL PERFORMANCE: In the last 12 months, NetLink NBN Trust had revenue of SGD 413.33 million and earned SGD 92.24 million in profits. The company's gross margin is 82.25%, with operating and profit margins of 29.19% and 22.32%, respectively. These are strong financial metrics, and they indicate a healthy and profitable business.

4. DEBT AND FINANCIAL POSITION: The company has SGD 183.94 million in cash and SGD 841.86 million in debt, giving a net cash position of -SGD 657.92 million or -SGD 0.17 per share. While the company has a significant amount of debt, its interest coverage ratio is 5.94, indicating that it has sufficient earnings to cover its interest payments. This financial position suggests that the company is managing its debt responsibly, which could support a higher stock price in the future.

5. MARKET SENTIMENT AND VOLATILITY: The stock's beta is 0.21, indicating that its price volatility has been lower than the market average. This stability can be appealing to risk-averse investors, potentially driving demand for the stock. Additionally, the stock price has increased by +1.78% in the last 52 weeks, suggesting positive market sentiment.

WHAT'S THE CATCH?

There's always a catch, right? Well, in this case, it's the lack of specific cash flow data. The information provided does not include specific data on NetLink NBN Trust's operating cash flow, capital expenditures, or free cash flow. The absence of this data makes it difficult to assess the company's liquidity and its ability to generate cash to service its debt and fund its operations. However, the intrinsic value assessment based on projected free cash flow (FCF) suggests that the company's value is S$0.97 per share, which is higher than the current stock price of S$0.86. This discrepancy highlights the importance of considering multiple financial metrics when assessing a company's intrinsic value.

SO, WHAT'S THE VERDICT?

NetLink NBN Trust (SGX:CJLU) is a buy, buy, BUY! The stock is trading at a massive discount to its intrinsic value, and it's paying a massive dividend yield. The company has strong financial metrics, and it's managing its debt responsibly. Don't miss out on this opportunity, folks! Buy now and hold on for the ride. This stock is a no-brainer, and it's time to capitalize on this hidden gem in the telecom sector. BOO-YAH!