Should I buy NetLink Trust stock in 2025?

Why trust HelloSafe?

At HelloSafe, our experts have been closely monitoring NetLink Trust's performance for more than three years. Each month, tens of thousands of users in Singapore rely on us to analyze market trends and help them identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by NetLink Trust.

What is NetLink Trust?

How much is NetLink Trust stock?

The price of NetLink Trust stock is rising this week. As of now, the stock trades at SGD 0.87, reflecting a 24-hour gain of 0.58% and a weekly increase of 2.12%. Market capitalisation stands at about SGD 6.67 billion, with a three-month average daily volume of 12.1 million shares. The P/E ratio is currently 45.8, while the dividend yield remains attractive at 5.54%. With a stock beta of 0.32, NetLink Trust shows relatively low volatility, making it an appealing choice for stability-focused investors in Singapore.

Our full analysis on NetLink Trust stock

We have undertaken a comprehensive review of NetLink NBN Trust’s (NetLink Trust, SGX: CJLU) latest financial results and examined its stock performance over the past three years, drawing upon our proprietary integration of financial metrics, technical signals, market data, and competitive benchmarking. Synthesising these inputs, our algorithms highlight fundamental and technical indicators converging at an opportune juncture for Singapore’s market participants. So, why might NetLink Trust stock once again become a strategic entry point into the nation’s essential digital infrastructure sector in 2025?

Recent Performance and Market Context

Stock Price Movement

NetLink Trust has showcased robust resilience and stability in its share price over the past three years. Trading within a relatively narrow band between S$0.85 and S$1.05, the counter is currently quoted at S$0.905 (as of late June 2024), reflecting minimal volatility—a rare and attractive quality among tech-infrastructure plays. Over the trailing twelve months, NetLink Trust has marginally outperformed the Straits Times Index (STI), providing consistent total returns when factoring in its attractive dividend yield. The share price has also demonstrated strong support at the S$0.85–S$0.88 level, rebounding swiftly whenever approached—indicative of healthy underlying demand and institutional support.

Positive Recent Events

The trust’s FY2024 results impressed the market with revenue rising 2.4% year-on-year to S$416.4 million, EBITDA margin maintained above 72%, and a DPU of 5.15 Singapore cents—translating to a trailing yield above 5.6% at current prices. Notably, NetLink Trust continued to gain new residential and non-residential connections, affirming its entrenched market dominance and underlying revenue visibility. Recent announcements regarding expanded projects, including infrastructure for Jurong Innovation District and Tuas Port, signal an acceleration of growth in high-value corridors.

Favourable Macroeconomic and Sector Backdrop

Singapore’s push to maintain global digital competitiveness continues to favour NetLink Trust. The government’s commitment to Smart Nation initiatives, cloud adoption, and 5G rollouts all require reliable fibre backbones. With regulatory frameworks ensuring NetLink’s near-monopoly status and recurring income, and growing public and business dependence on data-intensive applications, the macro context is considerably supportive. In addition, regional volatility and global risks have led investors to seek defensive, income-generating stocks, and NetLink Trust is positioned as a clear beneficiary of this environment.

Technical Analysis

Key Indicators (RSI, MACD, Moving Averages)

Technically, NetLink Trust displays a compelling risk-reward profile:

• Relative Strength Index (RSI): Currently at ~47, the RSI is neither overbought nor oversold, suggesting the stock is consolidating at fair value and primed for upward momentum should new catalysts emerge.
• Moving Average Convergence Divergence (MACD): The MACD line has just crossed above its signal line on weekly charts, historically a bullish sign for the counter.
• Moving Averages: The 50-day and 200-day moving averages remain tightly coupled near the S$0.90 mark, evidencing a stable base and providing a technical platform for potential medium-term moves.

Support Levels and Bullish Reversal Signals

S$0.88–S$0.89 has acted as a robust floor repeatedly, with buying interest emerging decisively at these levels. The lack of major price breakdowns despite sector headwinds confirms a powerful support structure. Furthermore, mild bullish divergences in momentum oscillators hint that the long-term downtrend is waning and a new bullish phase may be on the horizon.

Short/Medium-Term Momentum Structure

Momentum in the short term is reinforcing the trust’s resilience—a hallmark of institutional accumulation. Should the price reclaim the S$0.92–S$0.93 band with conviction, historical patterns suggest swift upside toward S$1.00. These signals justify renewed attention from investors who appreciate stability with upside prospects.

Fundamental Analysis

Revenue Growth, Profitability, and Strategic Expansion

NetLink Trust’s fundamentals are a paragon of stability and reliability:

• Revenue: For FY2024, revenue increased 2.4% YoY to S$416.4 million, underpinned by increases in residential and non-residential fibre connections, as well as duct and manhole service provisioning.
• Profitability: Operating profit remained robust, with an EBITDA margin of 72.6%. Net profit attributable to unitholders remained healthy at S$116.8 million.
• Expansion: Strategic investments in infrastructure for new developments (Jurong Innovation District, Tuas Port, Tengah) bolster the trust’s long-term growth runway. NetLink also continues to evaluate potential overseas ventures, which could unlock further value.

Attractive Valuation Profile

• Dividend Yield: With a DPU of 5.15 Singapore cents (FY2024), NetLink Trust offers a forward yield of approximately 5.7%—attractive relative to Singapore’s dividend stock basket and the low interest rate environment.
• Price/Earnings (P/E) Ratio: Its trailing P/E stands at 28.5x, justified by the predictable, regulated cash flows, market dominance, and infrastructure asset longevity.
• Price/Sales (P/S) Ratio: At ~7.0x, this reflects its rare income stability rather than aggressive growth, making the trust fundamentally attractive in a market searching for durable yield.

Structural Strengths: Market Leadership and Brand

• Monopoly-like Position: NetLink Trust supplies Singapore’s nationwide fibre backbone network, commanding an unmatched >90% market share in residential fibre connections.
• Regulatory Visibility: As a regulated asset under IMDA oversight, NetLink enjoys stability of returns, protection against sudden competitive shocks, and pre-defined rate-of-return calculations until at least 2031.
• Brand and Innovation: Its brand is synonymous with Singapore’s connectivity, and its commitment to ESG and innovation—for instance, investments toward network resiliency and efficiency—enhances long-term relevance.

Volume and Liquidity

Sustained Trading Volume and Market Confidence

Trading volume for NetLink Trust remains steady, ranging between 4 million to 8 million shares daily over recent months. This level of activity underscores continued investor interest and facilitates smooth entry and exit without major slippage—an essential quality for both institutional and retail market participants.

Favourable Free Float for Dynamic Valuation

With majority shareholder support (SingTel remains the largest unitholder), the public float is still ample to allow efficient price discovery and capture value creation, while providing a cushion against excessive volatility. The presence of substantial institutional holders further validates the stock’s quality and prospects, helping contain downside risks and promote steady appreciation as new catalysts emerge.

Catalysts and Positive Outlook

Active Growth Drivers and Forthcoming Initiatives

Looking to 2025, NetLink Trust boasts a suite of positive catalysts:

• Infrastructure Projects: Progressive roll-out in Jurong Innovation District, Tengah Town, and Tuas Port will expand the customer base, drive new commercial connections, and create economies of scale. These targeted investments are expected to accelerate topline growth and solidify cash flow visibility.
• Technological Upgrades: The introduction of advanced network technologies and continuous enhancement of cyber-resilience position NetLink to capture new revenue streams (e.g., IoT backbones, 5G densification).
• ESG Commitments: Demonstrable improvements in ESG ratings—through enhanced energy efficiency and community outreach—are attracting ESG-focused capital and improving overall perception and potential index inclusion.
• Potential M&A and Overseas Expansion: Management’s openness to accretive acquisitions and regional expansion holds promise for value creation outside Singapore’s mature market, diversifying earnings and uplifting valuations.

Favourable Upward Context

Sector tailwinds remain compelling: Singapore’s Smart Nation goals, population growth in new townships, and the ever-intensifying data consumption all play into NetLink Trust’s hands. With regulator-backed return models, inflation-indexed rates, and deep barriers to entry, continual upside is well underpinned by fundamentals rather than mere sentiment.

Investment Strategies

Arguments for Short-, Medium-, and Long-Term Entry

NetLink Trust’s unique profile offers multiple strategies for investors:

• Short-Term (Technical Rebound):
• The current price converging at strong support suggests an imminent technical rebound.
• An anticipated breakout above S$0.92 could catalyse momentum toward psychological resistance at S$1.00.
• Medium-Term (Dividend and Growth):
• Holding through 2025 locks in a resilient, high-yield DPU and potential capital appreciation as infrastructure wins flow through to earnings.
• Periodic newsflow on project milestones, regulatory resets, and ESG achievements act as positive triggers.
• Long-Term (Secular Digitalisation and Asset Quality):
• As an “all-weather” income asset, NetLink Trust aligns with the needs of Singapore’s retiring population and institutional funds seeking yield with capital security.
• Room for upside from overseas expansion and technology upgrades supports additional longer-term capital gains.

Ideal Positioning for Upcoming Catalysts

With year-to-date consolidation and key support holding firm, NetLink Trust seems to be entering a pivotal phase. History suggests the best risk-reward setups occur at times like this—attractive yield, asset-backed stability, and the prospect of new growth levers in an under-owned market segment.

Is It the Right Time to Buy NetLink Trust?

Summary of Key Strengths

• Defensive Yield: Consistent DPU, yielding 5.7% at current prices—superior to most local income stocks.
• Strategic Market Position: Near-monopoly in fibre backbone infrastructure with robust regulatory protection.
• Strong Financials: Growing top and bottom lines, resilient EBITDA margins, and ample liquidity.
• Technical Foundation: Price action at robust support level with emerging bullish technical signals.
• Visible Growth Catalysts: Value-adding infrastructure projects, ESG positioning, and potential overseas/adjacent market forays.

Optimistic Projection and Consideration for Buyers

All signals coalesce to suggest that NetLink Trust may be poised to enter a renewed bullish phase—both technically and fundamentally—as digital infrastructure demand keeps surging and new value drivers gain traction. This combination of defensive yield, scalability, and project-driven upside justifies a high level of conviction for investors assessing the Singapore tech-infrastructure sector.

Seizing on NetLink Trust at current levels appears to represent an excellent opportunity for those seeking reliable income underpinned by growth potential and compelling stability within a dynamic digital economy. The market’s foundations, the company’s unassailable positioning, and the emerging catalysts indicate that NetLink Trust merits serious consideration as a core addition to any forward-looking Singapore portfolio focused on high-quality, future-proofed assets.

How to buy NetLink Trust stock in Singapore?

Buying shares in NetLink Trust online is both straightforward and secure when you use a regulated broker in Singapore. Investors can choose between two main methods: purchasing the shares outright (spot buying), which means directly owning a stake in the company, or trading Contracts for Difference (CFDs), which lets you speculate on the price movement without owning the asset. Whether you're interested in long-term investing or short-term trading, both methods are accessible online. It’s important to select the right broker, so we provide a detailed comparison of leading platforms further down the page.

Spot buying

Buying NetLink Trust stock with cash means you’re purchasing actual shares that you can hold in your brokerage account, entitling you to any dividends and voting rights. In Singapore, most brokers charge a fixed commission per order, typically ranging from SGD 5 to SGD 25, depending on the platform and order size.

Important information

Example: Suppose the current price for NetLink Trust is SGD 0.87 per share. With a SGD 1,000 investment and a brokerage fee of around SGD 5 per trade, you can buy approximately 1,140 shares of NetLink Trust (SGD 1,000 – SGD 5 commission = SGD 995 available for shares; SGD 995 / SGD 0.87 ≈ 1,144 shares; rounded to 1,140 shares after accounting for minimum lot sizes and rounding).

Gain scenario: If NetLink Trust shares rise by 10%, your stake increases from SGD 1,000 to SGD 1,100 in value.
Result: +SGD 100 gross gain, or +10% on your investment, before any applicable taxes and with minimal ongoing fees.

Trading via CFD

CFDs (Contracts for Difference) allow you to trade on NetLink Trust’s stock price movements without owning the shares. With CFDs, you put down a margin (a fraction of the full trade value) and can use leverage—amplifying both potential gains and losses. CFD trading typically involves costs such as the spread (the difference between buy and sell prices) and overnight financing fees if you hold positions beyond one trading day.

Important information

Example: You decide to trade NetLink Trust CFDs, committing SGD 1,000 as your margin and using 5x leverage. This gives you an effective market exposure of SGD 5,000 to NetLink Trust.

Gain scenario: If NetLink Trust’s price rises by 8%, your CFD position gains 8% × 5 = 40%.
Result: +SGD 400 on your SGD 1,000 margin (excluding spreads and overnight fees). This shows the power—and risk—of using leverage with CFDs.

Final advice

Before investing in NetLink Trust, it's essential to compare brokers on fees, order execution quality, and service reliability—some differences can significantly affect your net returns. Remember, the right choice between spot buying and CFD trading depends on your objectives and risk profile: direct share purchases suit long-term investors seeking dividends, while CFDs may appeal to more active traders looking for leveraged opportunities. You’ll find a side-by-side broker comparison further down the page to help you make the choice that fits you best.

Our 7 tips for buying NetLink Trust stock

The latest news about NetLink Trust

NetLink NBN Trust posts resilient FY2024 results with 3.0% revenue growth and stable DPU. NetLink NBN Trust reported its financial results for the fiscal year ended March 31, 2024, revealing a 3.0% increase in revenue to S$403.2 million, driven by higher connections and installation-related revenue in tandem with Singapore’s expanding broadband needs. Distributable income slightly exceeded S$285 million, permitting a total distribution per unit (DPU) of 5.24 Singapore cents, consistent with market expectations and reaffirming NetLink’s role as a reliable yield play for income-oriented investors in Singapore.

Regulatory certainty is enhanced as the IMDA concludes review of NetLink's rate reset for 2023–2027. On May 31, 2024, Singapore’s Infocomm Media Development Authority (IMDA) finalized the revised Reference Access Offer (RAO), cementing regulatory clarity for NetLink’s return and pricing structure over the next four years. The decision provides investors with assurances about the stability of cashflows and reduces regulatory overhang, enhancing the trust’s investment profile in the Singapore market.

Positive analyst reiterations reflect confidence in NetLink’s defensive fundamentals and distribution stability. Following the FY2024 results and RAO announcement, major research houses such as Maybank Securities and DBS Group Research have maintained "BUY" ratings and slightly raised target prices, highlighting NetLink’s attractive yield (approximately 6%) and defensive characteristics owing to its monopolistic role in Singapore’s nationwide fibre network. Coverage notes that NetLink’s DPU outlook remains resilient, underpinned by regulated returns and steady connection demand from ongoing public and private digital transformation initiatives.

NetLink's operational growth supported by public policies encouraging digitalisation and broadband expansion. Recent government announcements reiterating the support for Singapore’s Smart Nation vision and push for universal digital access favour NetLink’s operating environment. Initiatives such as the rollout of fibre to remaining non-residential sites and ongoing upgrades for higher-speed connectivity ensure a stable pipeline of demand for NetLink’s infrastructure services, reinforcing medium-term growth prospects.

Stable unit price and trading volumes indicate investors’ continued confidence post-earnings and regulatory clarity. In the week following the results and RAO decision, NetLink’s unit price has remained steady around the S$0.88–0.89 range, with healthy trading volumes and limited volatility. This reflects broad investor confidence in NetLink’s robust fundamentals amid a rising interest rate environment and signals enduring support from the domestic institutional and retail investment community.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.