Hyflux

Hyflux: FY12 earnings increase 15% $61m, revenue up 42% to $682.4m; The biggest revenue contributor was its municipal projects from Asia, the Middle East and North Africa, representing 92% of the group’s total revenue. Order book stands at $2.9b, with the operation and maintenance sector accounting for S$1.9 billion, the highest ever for the group. This current position implies that Hyflux will have a much higher proportion of steady, recurring and predictable revenue streams as the O&M revenues are contractually supported over concession periods of 20 to 30 years. Hyflux says its Tuaspring desalination plant in Singapore will start operations in 2H2013 and is expected to enhance O&M revenues further. Hyflux recommended a final cash dividend of 2.5 cents per share. Company trades at 18.5x P/E, 2.4x P/B.