Stock Name: Hyflux
Company Name: HYFLUX LTD
DBS Vickers Securities in an Aug 5 research report says: "In tandem with weaker than expected sales of $111 million, PATMI of $14.5 million (-47% y-o-y, 97% q-o-q) came in significantly below our $27 million forecast. Hyflux maintained interim dividend perp share of 0.67 cents.
"In addition to higher costs and taxes, the Magtaa fire will delay some EPC recognition. Hence, we have cut FY2011F earnings by 24% and push up FY2012F by 17%. For 2H, drivers include continued execution of China projects, start of Tuaspring (15% recognition) in 4Q11 and some O&M flow through from Tlemcen.
"Notwithstanding higher earnings in FY2012, our SOTP-based target price is reduced to $2.07, in line with lowered market valuations and delayed O&M receipts for Magtaa too. DOWNGRADE TO HOLD."
Company Name: HYFLUX LTD
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 2.07 |
DBS Vickers Securities in an Aug 5 research report says: "In tandem with weaker than expected sales of $111 million, PATMI of $14.5 million (-47% y-o-y, 97% q-o-q) came in significantly below our $27 million forecast. Hyflux maintained interim dividend perp share of 0.67 cents.
"In addition to higher costs and taxes, the Magtaa fire will delay some EPC recognition. Hence, we have cut FY2011F earnings by 24% and push up FY2012F by 17%. For 2H, drivers include continued execution of China projects, start of Tuaspring (15% recognition) in 4Q11 and some O&M flow through from Tlemcen.
"Notwithstanding higher earnings in FY2012, our SOTP-based target price is reduced to $2.07, in line with lowered market valuations and delayed O&M receipts for Magtaa too. DOWNGRADE TO HOLD."
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