Wednesday, October 6, 2010

Hyflux - Standard Chartered starts Hyflux at Outperform

Stock Name: Hyflux
Company Name: HYFLUX LTD
Research House: StanChart


Standard Chartered starts Hyflux (600.SG) at Outperform with $3.80 target price, based on discounted cashflow valuation, says Dow Jones. 



Expects sustainable earnings stream as water treatment firm’s build-operate-transfer projects in China gradually commencing operations, ramping up. 


Flags potential for mega contract in Libya, where Hyflux has already signed memorandum of agreement to build 2 desalination plants; “while only a memorandum of agreement is signed, the potential from a win on this project could enhance earnings by 19%-189% during FY11-13.” 

Says concerns over high gearing are easing given recent JVs with Japanese companies to help fund projects. Shares +1.0% at $3.16. 

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