Hyflux

Hyflux:1Q14 net profit was 4.7x higher at $37.9m, while revenue slumped 29%, reflecting timing of projects commencement for FY14. Bottom line was boosted by a disposal of JV Hyflux Marmon Development, amounting to $54.1m. This was partly offset by higher utilities cost for Tuaspring plant from the delay in operational readiness of the national power grid to the plant, aside from a receivables provision amounting $10.7m. The year ahead is expected to be slow, and management will focus on achieving financial close for tis Dahej desalination plant this year. The Group is actively bidding for new applications in Middle East, Africa and Asia in both industrial and municipal sectors. Hyflux is currently trading at annualized 1Q P/E of 8.6x, and P/B of 2x