Hyflux

Hyflux: Results below consensus. 2Q Rev $111.1m -20.9% yoy +28.0% qoq with net profit at $14.5m -46.7% yoy +96.8% qoq. Decline was due to reduced contributions from MENA region falling over 50% yoy from $185.1m to $86.6m in 1H2011 as well as starting up of Tuas Singspring project. Delay in Magtaa plant by 9 mths due to recent fire to push back recognition of rev. Contributions from MENA fell to 44% of 1H share of rev from 77%, China at 36% from prev 19% and remainder came from Singapore and other regions. Orderbook remains substantial at $2.1b with $890m from the desal plant. Interim div of 0.67c declared for this quarter. CIMB maintains Outperform but cuts TP from $2.76 to $2.38. Possible catalysts are from contract wins in China.