HYFLUX JUMPS ON STRONG PROFITS
Water treatment firm Hyflux <HYFL.SI> rose as much as 6.6
percent on Thursday after posting a near-80 percent jump in
annual net profit, but some analysts cut their price targets,
citing concern over a weak industrial sector.
JPMorgan, which rates Hyflux as "overweight", said there was
potential gain from its Build-Own-Transfer plants divesture,
adding that a portfolio of 9 plants initially priced at S$180
million ($117.5 million) was in the pipeline.
"The price tag could be potentially revised upwards depending
on the state of completion and operating levels of the plants,"
JPMorgan said in a research note.
But JPMorgan cut its Hyflux price target to S$2.50 from
S$3.00 previously.
Credit Suisse, which rates Hyflux as "outperform", reduced
its target price to S$2.39 from S$2.52, citing industrial sector
weakness.
A local dealer said Hyflux's strong revenues were impressive
at a time of recession.
"The water business is not high risk, except for higher
gearing from time to time. But Hyflux has proven itself in the
long-run without putting too much strain on the business," he
said.
By 0415 GMT, Hyflux was up 6 percent at S$1.76, outperforming
a 1 percent drop on the benchmark Straits Times Index
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