Hyflux

[kennynah]

and its stock price is still like dat.....

[winston]

Not vested. From Kim Eng:-

Optimism priced in

While we are still positive about Hyflux’s long-term prospects and its ascendency into a strong global competitor for water solutions, we believe much of this optimism has been priced in at the moment.

Downside risks include delays for its Libyan contracts, slower-than expected contracts momentum and project execution risks.

[millionairemind]

March 8, 2010, 7.01 pm (Singapore time)

Hyflux's unit clinches S$43.8 mln EPC contract

By ANGELA TAN

Hyflux Ltd said its subsidiary, Hydrochem (S) Pte Ltd, has been awarded a S$43.8 million contract by the TP Utilities Pte Ltd to undertake the engineering, procurement and construction (EPC) works for stage one of the Tembusu Seawater Desalination Plant.

TP Utilities Pte Ltd is a unit of Tuas Power.

Work on stage one is scheduled to start immediately and is expected to be completed in about 20 months.

The contract for the first stage of the desalination plant is not expected to have a material impact on the net tangible assets or earnings per share of Hyflux for the financial year ending December 31, 2010.

[winston]

Not vested.

These Are a Few of My Favorite Things, Part I by By Chris Mayer

Water - I've been urging my subscribers to invest in water stocks for several years...and Hyflux is one of my favorites. Hyflux (HYFXF: OTC Bulletin Board) operates in China, Southeast Asia, India, the Middle East and North Africa. It is involved in a variety of water projects, from desalination to recycling.

It was among the first stocks ever recommended in my investment service, Mayer's Special Situations, when I launched the "Blue Gold Portfolio" back in the summer of 2006. Since I recommended it, Hyflux is up 75%, while the S&P 500 is down 10%.

Recently, the company posted a fresh earnings report that showed record results. Hyflux announced net profits of $53 million - a record high and a 27% increase from the year prior. The order book also grew 20%. It generated solid cash flow and maintained a good balance sheet with $120 million in the bank.

Below is a chart I like from the latest earnings presentation. It shows you the growing order book broken down into two categories. EPC is the engineering business that builds plants. This is a more volatile business. The O&M is for operations and maintenance. This is the business the runs desalinization plants and the like. This is a steady cash flow business.

As you can see, the O&M part of the business is growing mightily. This lowers the risk of Hyflux's business and gives it more of a stable platform of cash flow.

Hyflux's Growing Order Book

Hyflux is also gaining market share, especially in desalination. This next chart is also from the latest earnings presentation. It shows you Hyflux has emerged as a clear leader among its peers.

Hyflux Market Shares

Hyflux operates the largest seawater desal plant in China, in Tianjin. The company is also building the largest seawater desal plant in the world in Algeria. There is a ton of room for growth when you consider the urgent and long-term need for water along the New Silk Road.

The stock trades for about 25 times earnings, which roughly matches its growth rate. Hyflux is no longer the great bargain it was; however, it remains one of the best ways to play Asia's long-term water needs.


Source: Daily Reckoning

[winston]

Not vested. From OCBC:-

Hyflux Ltd: Secures S$43.8m Jurong Island Job

Summary: Hyflux Ltd has just been awarded a S$43.8m contract by Tuas Power unit TP Utilities (TPU) to undertake the engineering, procurement and construction (EPC) works for stage one of the Tembusu Seawater Desalination Plant on Jurong Island.

Management notes that the project is another “springboard” for Hyflux to participate in the increasing demand for large-scale desalination from customers in power, petrochemicals and basic resources worldwide.

We are also positive on the latest contract win; not only will it add to the company’s already sizable S$1848m order book (as at 31 Dec 09), but it also marks a potential revival of orders from the industrial segment.

Latest deal bumps up the EPC order book portion to S$828m, with the bulk expected to be delivered over the next two years. Given the still upbeat outlook for the global water industry, especially in China, we maintain our BUY rating with S$4.19 fair value. (Carey Wong)

[winston]

Not vested

Hyflux's Q1 net profit jumps 25% by ANGELA TAN

Hyflux Ltd reported on Wednesday that its net profit for the first quarter of 2010 rose 25 per cent to S$6.40 million compared to last year.

Revenue was up 15 per cent at S$101.34 million.

Municipal sector revenue from Middle East and North Africa and China stood at S$77.5 million and S$5.0 million respectively.

Revenue from industrial sector decreased by 4 per cent from S$12.4 million to S$11.9 million as industrial activities in China remain slow.

Middle East and North African accounted for 78 per cent of the total revenue, while China contributed approximately 15 per cent of the total revenue.

Source: Business Times

[winston]

Not vested.

Hyflux (HYF SP) – Healthy 1Q10 results, concerns over Libya

Hyflux announced its 1Q10 results, which showed healthy operational growth. However, we would not read
too much into its first‐quarter results as theytypically constitute less than 10% of annual headline numbers. 

We maintain our HOLD call as we believe there is limited upside at the moment due to a lack of revenue
growth visibility.
 
We keep our estimates unchanged but adjust our SOTP‐based target price to $3.43, mainly on the concern
that growth trajectory could be affected by Libyan delays /b] as well as to account for dilution from 
[b]Istithmar’s exercise of warrants. 

We acknowledge Hyflux’s longer‐term prospects and the good reputation it is building up in the global arena.
 
http://www.remisiers.org/research//mb%206%20May.pdf

[winston]

Not vested. From DBS:-

Shares of Hyflux have fallen 20% m-o-m and currently trade at –1SD of 17x FY10 earnings, which is seen as an attractive entry level. Near term catalysts for the stock are potential contract win from Singapore’s 2nd desalination plant, new wins from MENA and China as well as the conclusion of the SGD1-1.4bil Libyan contracts in H2 that provides visibility up to 201.

Hyflux is unaffected by developments in Europe and US and has little exposure in China. Our research analyst
upgrades the stock to Buy from Hold TO: $3.50.

[winston]

Not vested. From OCBC:-

Hyflux Ltd: Potential SIWW catalyst

Summary: Hyflux Ltd could see a potential near-term catalyst coming from the 3rd Singapore International Water Week (SIWW) to be held in late Jun, which event organizers have announced that they expect a record turnout at the event this year. More importantly, we believe that the event could see Hyflux inking deals for more water-treatment projects.

As a recap, the SIWW event last year resulted in over S$2.2b worth of contracts being signed, which included Hyflux’s Libyan contracts (estimated at S$1.5b). Currently, Hyflux is still sitting on an impressive order book, which we estimate to be around S$1827m (S$727m for EPC, S$1100m for O&M) as of end-Mar.

Given Hyflux’s proven track record, we believe that securing more contracts should not be an issue. Maintain BUYwith S$4.19 fair value (based on 25x FY10F EPS). (Carey Wong)

[winston]

Hyflux ST: the upside prevails as long as 3.02 is support <HYFL.SI>

Click here to see our chart:
http://www.tradingcentral.com/chart/HYF ... 012603.gif

Our pivot point stands at 3.02.

Our preference: the upside prevails as long as 3.02 is support.

Alternative scenario: below 3.02, expect 2.93 and 2.88.

Comment: the RSI is above 50. The MACD is above its signal line and positive.

The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day MA (standing respectively at 3.07 and 3.11).

Supports and resistances: 3.35 *3.3 **3.25 3.12 last 3.06 3.02 **2.93 *


Source: Reuters