Hyflux: HSBC initiate coverage with Neutral Call and $1.40 TP. House note that Hyflux has a strong record and product portfolio in a growing industry and operates in high-growth, water-scarce regions such as China, India, MENA, and ASEAN.
Near-term growth however is curbed by financial capacity to take on bigprojects and expect tepid order flow in the next few quarters. Add that Hyflux looks cheap on historical profit multiples, but less so on cash flow multiples.
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