Hyflux: Citi maintains Buy with $2.15 TP. House note that 2011 a transition yr, with no significant order additions in 2H11. At end 1H11, Hyflux’s order book stood at $2.1b. House believe financial mkt volatility and political stress in MENA had delayed new project awards.
Add that Hyflux is at the tail end of its two desalination projects in MENA and this will swing the firm back from a MENA driven firm back to being Asia driven (SG & China). Completion of projects in MENA has reduced revenue contribution from that region to 39% in 3Q11 (vs 71% at end 3Q10). News that Hyflux is a bidder in Oman’s US$350-400m Ghubrah desalination project has helped the stock in the past wk.
Overall house expect FY12 to remain buoyed by its Tuaspring project, and is watching closely Hyflux’s order intake in the next six mths as house firm up our view on FY13.
No comments:
Post a Comment