Stock Name: Hyflux
Company Name: HYFLUX LTD
Research House: OCBC
Wong says the recent selldown on concerns over the political turmoil in the Middle East and north Africa is likely overdone; “since the news of the Middle East unrest broke in early February, Hyflux has suffered a sharp 24.3% decline in its share price...but the latest order win shows that Hyflux’s skill-set is highly mobile and it is not solely dependent on (the region) for growth.”
Company Name: HYFLUX LTD
Research House: OCBC
Hyflux (600.SG) surges 7.7% to $1.97 after it secures a $890 million boost to its orderbook with the Tuas desalination project win.
OCBC analyst Carey Wong says the project “not only adds another feather to Hyflux’s cap, it also bumps up its order book to $2228 million”; meanwhile, Hyflux is also looking to Indonesia and Australia for more growth opportunities this year, and the company is very familiar with the China market.
OCBC analyst Carey Wong says the project “not only adds another feather to Hyflux’s cap, it also bumps up its order book to $2228 million”; meanwhile, Hyflux is also looking to Indonesia and Australia for more growth opportunities this year, and the company is very familiar with the China market.
Wong says the recent selldown on concerns over the political turmoil in the Middle East and north Africa is likely overdone; “since the news of the Middle East unrest broke in early February, Hyflux has suffered a sharp 24.3% decline in its share price...but the latest order win shows that Hyflux’s skill-set is highly mobile and it is not solely dependent on (the region) for growth.”
He adds Hyflux will fund the job using a mixture of project financing and equity, and notes management’s comments that the company will not exceed a net debt/equity ratio of 1X.
OCBC has a Buy rating and $2.41 fair value.
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