Hyflux

Hyflux: IIFL reiterate Sell, TP $1.34. Note that fixed asset investment in China’s water industry has been slowing down since mid-2010 and has declined by 6.3% YTD. New project wins in China could likely fall short of estimates, cut 2012-13 new BOT order assumptions by 40%. Expect 80% lower EPC contribution from China in 2012 and lower 2012 EPS estimates by 10.4%. In view of the uncertain macro-economic environment, lower EPC earnings and slowdown in order inflows.