Tuesday, September 24, 2013

Hyflux: Time to look for other projects (OCBC)

Hyflux:
Fair value S$1.22
add: 12m dividend forecast S$0.030
versus: Current price S$1.195

Time to look for other projects
• Tuaspring completed
• Focus back on MENA
• Contract wins will be next catalyst

Hyflux Ltd has officially launched Singapore’s second and largest reverse osmosis (SWRO) desalination plant on 18 Sep. According to management, the desalination plant is not only a showcase of its membrane technology but also strengthens Hyflux’s
international track record in large-scale desalination plants, putting the company in a strong position to provide clean, affordable and sustainable water solutions to meet worldwide demand. During the Tuaspring launch, we also had a short chat with management and it appears that Hyflux is slowing but surely turning its focus back to the MENA region. But until we see the award of a sizable contract from any of the above mentioned markets to replenish its order book, we opt to maintain our HOLD rating and S$1.215 fair value (still based on 20x blended FY13/FY14F EPS).

Officially launched Tuaspring
Hyflux Ltd has officially launched Singapore’s second and largest reverse osmosis (SWRO) desalination plant on 18 Sep. The construction of the plant, currently Asia’s largest seawater desalination facility with a daily capacity of 318.5m3, took around two years to complete - both on time and within budget. Meanwhile, the co-gen power plant is also on track to be completed on schedule – we estimate that this is likely to translate into some S$400m of EPC revenue to be recognised in FY13 and FY14. In addition, Hyflux has secured a S$720m 18-year term loan facility to fund the desalination and power plants.

Showcase of technology and track record
According to management, the desalination plant is not only a showcase of its membrane technology but also strengthens Hyflux’s international track record in large-scale desalination plants, putting the company in a strong position to provide clean, affordable and sustainable water solutions to meet worldwide demand. Indeed, management remains upbeat about the global water industry, noting that increasing urbanization and industrialization are fuelling greater water scarcity, while tougher legislation on water and wastewater discharge quality are also drivers for the industry.

Slowly looking at MENA again
During the Tuaspring launch, we also had a short chat with management and it appears that Hyflux is slowing but surely turning its focus back to the MENA region. In addition, we note the presence of many delegates from that region at the launch, as well as delegates from both China and India – these are all key growth markets that Hyflux has previously identified. But until we see the award of a sizable contract from any of the above mentioned markets to replenish its order book, we opt to maintain our HOLD rating and S$1.215 fair value (still based on 20x blended FY13/FY14F EPS).


Source/Extract/Excerpts/来源/转贴/摘录: OCBC-Research,
Publish date: 23/09/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock