Stock Name: Hyflux
Company Name: HYFLUX LTD
Research House: OCBC
He notes management expects the contribution from MENA to fall to just 30% in 2014 from 60% in FY10. Instead, Hyflux expects to see the revenue contribution from Southeast Asia increase to 30% from 14% in FY10. He adds there’s also huge potential in China, while Hyflux intends to look to Indonesia and Australia for opportunities.
Wong notes Hyflux has addressed Middle East concerns and more, and “while the stock price may remain volatile in the near term...we continue to believe in the long-term growth prospects of the group.”
Company Name: HYFLUX LTD
Research House: OCBC
OCBC keeps Hyflux (600.SG) at Buy with a $2.41 fair value based on 22.5X FY11 forecast EPS. Analyst Carey Wong notes reports that Hyflux will let a US$100 million Libya contract lapse and will not proceed with talks to build two mega desalination plants there; “we have not included the two mega projects in our estimates; we also note that Hyflux has yet to commit any resources to the Tobruk project.”
He notes management expects the contribution from MENA to fall to just 30% in 2014 from 60% in FY10. Instead, Hyflux expects to see the revenue contribution from Southeast Asia increase to 30% from 14% in FY10. He adds there’s also huge potential in China, while Hyflux intends to look to Indonesia and Australia for opportunities.
Wong notes Hyflux has addressed Middle East concerns and more, and “while the stock price may remain volatile in the near term...we continue to believe in the long-term growth prospects of the group.”
The stock is down 1.0% at $1.93.
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