Hyflux (600.SG) has gained 0.6% at $3.62 but struggling to hold on to gains after pulling back from early high of $3.66 (+1.7%) on the back of record earnings in FY09.
“Strengths are priced in and valuations are at par with peers, while we await more catalysts to trigger further growth,” says Nomura, which has a “neutral” call with $3.70 target.
Hyflux posted a rise in net profit of 27% to $75 million on higher contributions from operations in Middle East, North Africa.
Singapore’s benchmark Straits Times Index (.FTSTI) fell 0.7% to end at 2,762.14 yesterday. US stocks closed higher last night after Federal Reserve Chairman Ben Bernanke reassured lawmakers interest rates will remain low, promising more cheap money to investors.
City Developments (CTDM.SI) posted a 77% rise in fourth quarter net profit of $177 million, beating the consensus estimate, on higher profits from property development. The company said it achieved its highest full year revenue and second highest profit since its inception in 1963.
Hyflux has reported a 27% increase in profit attributable to shareholders of $75 million for the 12 months ended 31 December 2009.
Hyflux says the net profit for FY2009 was a record for the group and was achieved on the back of FY2009 group revenue of $524.8 million.
In FY2008, Hyflux registered net profit of $59 million and revenue of $554.2 million.
The benchmark Straits Times Index (.FTSTI) rose 0.9% to end at 2,782.55 last evening. US stocks suffered their biggest one-day decline in nearly three weeks last night after a sharp drop in consumer confidence heightened worries. Here are some stocks and factors to watch:
Mainboard-listed Hyflux’s subsidiary, Hydrochem (S), has been awarded a $35.8 million contract by PUB, Singapore’s national water agency, to design, construct, test and commission a membrane bioreactor plant with a designed capacity of 68,000 cubic metres per day.
The plant at the Jurong Water Reclamation Plant will be Singapore’s largest. It will also be the largest membrane bioreactor plant to be built by Hyflux.
Kim Eng Securities in a Jan 13 research report says: “While it has been relatively quiet on the contract winning front, we believe Hyflux has not been sitting still. In the past six months, the Group has formed partnerships with Japan Bank for International Cooperation, Bank of Jiangsu and JGC Corporation. Plans for a new innovation centre and production hubs were announced.
CIMB in a Jan 5 research report says: “Hyflux announced over the weekend that it has been served with an originating summons by Istithmar World PJSC (IWP), an investment holding company incorporated in Dubai. IWP’s claim relates to a warrant subscription agreement between the company and IWP on Nov 23, 2004.
Singapore’s Straits Times Index lost 0.3% to 2,889.63 as of 9:57 a.m. Three stocks fell for each share that rose on the 30-member gauge. The following shares were among the most active in the market.
Hyflux (HYF SP): Singapore’s biggest publicly traded water treatment company, slipped 1.4% to $3.50. Istithmar World PJSC has issued summons against the company in relation to warrants Hyflux sold to Istithmar in 2004, Hyflux said.
The following companies may have unusual price changes in trading today, say Bloomberg and Thomson Reuters. Share prices are from the previous close. Singapore’s Straits Times Index rose 0.6% to 2,897.62.
PT Berlian Laju Tanker (BLTA SP): Indonesia’s biggest shipping company said one of its chartered vessels, MT Pramoni, may have been hijacked by pirates in the Gulf of Aden. Berlian Laju was unchanged at 10 cents.
DBS Vickers Securities in a Dec 15 research report says: “The collaboration with JGC, an established EPC player in large state-sponsored energy projects globally (and especially in Africa, Middle-East and Eastern Europe), will (1) provide an additional funding platform for Hyflux to invest in capital-intensive water projects in China; (2) create more opportunities to jointly invest in IWPP projects in the MENA region; and (3) the JV company can help free up Hyflux’s working capital by incubating assets in the development stage before they can be offered to Hyflux Water Trust by way of the rights of first offer and rights of first refusal agreements.
Global engineering company JGC Corporation (JGC) of Japan and NewSpring Utility Pte Ltd, a wholly-owned subsidiary of Singapore-based membrane technology company Hyflux Ltd, today signed a joint venture agreement to jointly develop green field water projects in China.
The newly formed 50:50 joint venture company, to be called H.J. NewSpring Limited will be the investment holding vehicle for developing, investing and managing such water projects in China.
Kim Eng Research in a Nov 23 research report says: “Hyflux unveiled new investment plans for a new innovation centre and production hub in Singapore. This is expected to cost about $120m over the next three to five years. We see this as another testament to Hyflux’s DNA of constant progress.
Singapore’s Straits Times Index gained 0.5% to 2,774.57 as of the 12:30 p.m. trading break. Three stocks advanced for each that fell on the 30-member gauge. The following shares were among the most active in the market.
Hyflux (HYF SP), Singapore’s biggest publicly traded water utility company, added 0.7% to $3.07. The company said it won a $95 million water desalination project in Oman.
Water company Hyflux says wholly-owned subsidiary, Hydrochem (S) has secured a contract to design and supply a desalination facility for the Salalah Independent Water and Power Project (IWPP) in Oman.
The contract is the first desalination project in Oman and the first IWPP project for Hyflux.
The following companies may have unusual price changes in trading today, say Bloomberg and Thomson Reuters. Share prices are from the previous close. Singapore’s Straits Times Index gained 0.5% to 2,758.79.
US stocks slid last night as another batch of economic data pointed to the fragility of the recovery and a brokerage’s dim view on the semiconductor sector hit technology shares.
Singapore Airlines (SIA SP): Tiger Airways Pte, the budget carrier partly owned by Singapore Airlines, is considering an initial public offering of at least US$500 million ($694 million) next year, the Wall Street Journal reported. Also, airlines may have to compensate passengers on flights that are delayed for more than three hours, the European Court of Justice ruled yesterday in cases involving Air France SA and Germany’s Condor Flugdienst GmbH. Singapore Airlines fell 0.1% to $14.12.
Water company Hyflux today announced its expansion plans and investments for its Hyflux Innovation Centre global headquarters and a new membrane manufacturing facility Hyflux Production Hub.
Shares of Hyflux, the largest water treatment company traded in Singapore, rose after posting higher earnings and CIMB Investment Bank Bhd. and Oversea- Chinese Banking Corp. raised their price estimates.
Hyflux (HYF SP), Singapore’s biggest water treatment company, advanced 2.5% to $2.47. JPMorgan Chase & Co. raised its June 2010 share-price estimate to $3.50 from $2.50 and maintained its “overweight” rating. Hyflux’s growing presence in the Middle East will help boost earnings in the next three years. Hyflux last month won a US$1-billion ($1.44 billion) project to build two water desalination plans in Libya.
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