Company Name: HYFLUX LTD
| Research House: OCBC | Price Call: HOLD | Target Price: 1.35 |
Stock Name: Hyflux
Company Name: HYFLUX LTD
| Research House: Kim Eng | Price Call: SELL | Target Price: 1.21 |
OCBC Investment Research and Maybank Kim Eng Research lowered their price targets on Hyflux after the water treatment company reported weaker-than-expected results.
OCBC cut its price target to $1.35 from $1.55 and maintained its hold rating, while Kim Eng reduced its target to $1.15 from $1.21 and maintained its sell rating.
Hyflux shares were up 0.4% at $1.44, having risen around 20% so far this year.
OCBC cut its earnings forecast for Hyflux’s 2012 fiscal year by 14% and by 11% for 2013 on lower margin assumptions.
Due to the geographical switch in Hyflux’s order book profile to Asia from Middle East and North Africa, its gross margin fell to 38% in its first quarter from 51% a year ago, OCBC said.
Kim Eng downgraded its 2012-2014 earnings estimate by 10-15% on reduced margin assumptions.
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