Hyflux

[Musicwhiz]

Was chatting about this over pizza & lunch with my consultant - yesterday.

Could anyone believe this is a potential $10 value stock??

Hi San San,

What do you mean a "potential $10 value stock"? You mean analysts had predicted TP of $10 for Hyflux before?

[helios]

nope, that's why i put the word 'potential' ... i can't believe the saying ... yet.

however, we can't deny the fact of an international publicity, and media attention on this counter ... wonders if Jim Roger is vested or not?

[millionairemind]

I am surprised that they can say that with so much certainty.

November 17, 2009, 12.31 pm (Singapore time)

Hyflux sees 20% profit, S$1 bln water deal

SINGAPORE - Singapore water treatment company Hyflux Ltd said it expects to post a 20 per cent rise in annual sales and profit over the next five years and plans a partnership with a Japanese group to develop water projects that could be worth more than S$1 billion (US$723 million).

Hyflux, builder of the largest membrane-based desalination plant in China, would boost its profitability on the back of increased spending by governments on treatment and desalination facilities to conserve scarce water supplies, Deputy Chief Executive Sam Ong told Reuters in an interview.

'The company is poised to pace record earnings in 2008 this year,' said Mr Ong. He said Hyflux's order book value for engineering and construction projects, at more than S$1 billion, should sustain earnings growth over the next two years.

The partnership would involve state-backed Japan Bank for International Cooperation (JBIC), he said. -- REUTERS

[kennynah]

... wonders if Jim Roger is vested or not?

sam sam here... i oso roll my eyes...

[millionairemind]

November 20, 2009, 12.51 pm (Singapore time)

Hyflux to invest $120m to expand operations

By TEH SHI NING

SINGAPORE - Hyflux will invest S$120 million over the next three to five years to expand its global headquarters and build a new membrane manufacturing facility.

The water treatment company said on Friday that its new 'nerve-centre for global operations', named the Hyflux Innovation Centre, will be built on a 1.7 hectare- site in Bendemeer and will have a gross floor area of about 32,000 square metres when completed.

Hyflux also said that it will be expanding its production capacity in response to anticipated market demand.

Its new Hyflux Production Hub, to be built on a 7.7 hectares site in Tuas, will have a gross floor area of over 75,000 square metres when fully completed. It is expected to raise production capacity by several-fold.

Both sites will be developed in phases.

Hyflux said that it does not expect these plans to have a material impact on the group's financials for the current financial year.

[Musicwhiz]

First question I will ask - where is the cash going to come from for the expansion? From loans, debt, shareholders or internal cash flows?

Second, a company should NEVER predict its own future. OSIM did this a while back and got it absolutely horribly wrong. Now Ron Sim doesn't give a forecast anymore, and I think things are actually better that way!

[kennynah]

Second, a company should NEVER predict its own future.

was reading the post above and could not find Hyflux making any "predictions" leh ? did they do so in any earlier public press release?

[Musicwhiz]

Second, a company should NEVER predict its own future.

was reading the post above and could not find Hyflux making any "predictions" leh ? did they do so in any earlier public press release?

Note the section in BOLD.

SINGAPORE - Singapore water treatment company Hyflux Ltd said it expects to post a 20 per cent rise in annual sales and profit over the next five years and plans a partnership with a Japanese group to develop water projects that could be worth more than S$1 billion (US$723 million).

[kennynah]

now i see it ... thanks...

ok...my simple take on this forecast...

imo, i think it is important to make a forecast... this imposes an obligation on the CEO to take objective steps to achieve the numbers... otherwise, how is he accountable to shareholders?

here, he is making a rather loose forecast... in US, the listed firms make quarterly forecasts...and the stock price fluctuates based on such forecasts and their realized numbers....

[winston]

This company has performed better than expectation over the years ...

My concern is the barrier to entry. What's so special about their membrane based techology compared to the other companies ? If the barrier to entry is low, why has the other companies not taken away their market share over the years ?

Beyong my circle of competence so I'm not vested