Thursday, December 12, 2013
Hyflux
Hyflux: HSBC opines that given Hyflux’s earnings has been historically driven by Engineering, Procurement and Construction (EPC) projects, weak earnings is through 1H14 in the absence of large active EPC projects. The nearest is Dahej project, which is expected to begin in 2H14. Net income may further be weighed down by upfront costs of the Dahej project.
HSBC also expects new orders as tough to win given the intense competition in the Middle East, North Africa (MENA), China and India. 2012 and YTD 2013 contract wins had been below HSBC’s expectations and the increasing preference for Built Operate Transfer structure for large water project by regulators is a disadvantaged to smaller balance sheet players like Hyflux.
HSBC reiterates U/W, and cuts TP to $1.1 (decrease from $1.34)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment