Phillip Securities has maintained its “accumulate” call for NetLink NBN Trust with an unchanged target price of $1.03, despite the latter’s mixed set of results for 1Q FY20 ended June 30.

This is because the availability of workers is now back to normal capacity, the brokerage notes.

Conversely, the pandemic has resulted in more activities to be conducted at home, which will help to accelerate the adoption of fibre with households, it adds.

On Aug 5, NetLink reported earnings growth of 12.4% to $23.5 million from $20.9 million a year ago.

Revenue, however, fell 3.3% y-o-y to $89 million from $92 million.

“We expect any loss in revenue this quarter to recover in the following months,” Phillip Securities’ head of research Paul Chew writes in a note dated Aug 11.

According to the brokerage, NetLink’s dividend yields are attractive and sustainable.

The trust’s recurrent revenues from the monthly subscription of residential connections provide a stable base of cash-flows to maintain dividends, it points out.

Furthermore, regulated returns from capital expenditure will provide additional growth in future years.

As at 11.42 am, NetLink was flat at 96.5 cents with 5.8 million units changed hands.