Hyflux    Last:0.21   -

Hyflux breaks into Indian Market

Hyflux shares is back to $2.25 +$0.05 cents or 2.3% up after taking in some profit yesterday. It will be stablizing btw $2.25 to $2.35, giving an ave of PE ratio of about 24-25x it earning, just a comparsion for ppl to view on Epure ipo which is 12x, so don dream epure will oso be 24-25x on opening, some where 15.5x to18x or just above that. Yahh....reserve 10% more for, anything more a big bonus....

 

   Hyflux's chart is not looking good now. It has corrected after clearing resistance at $2.39. MACD had a death cross on 26 Sep and Hyflux's price also dropped below its 20-day EMA. This is a good counter with good long term potential. Will wait for a good time to re-enter again.  

 

The Business Times News on Hyflux stocks rise on news of WB funding

The Business Times.

By Wong Wei Kong - Sep 20, 2006
SHARES of water specialist Hyflux rose on news that it has received World Bank (WB) funding for its China projects. International Finance Corp (IFC), the commercial lending arm of the World Bank, said that Sinospring Utility, a 50%-owned by Hyflux, is receiving US$45 m of financing from IFC.

Earlier this year Hyflux announced d completion of the subscription loan agreements with IFC.

IFC will make a US$20 mil investment in SinoSpring, in the form of a preferred convertible bond issue. SinoSpring is Hyflux's vehicle for China-based water treatment projects & is currently executing eight contracts. IFC will also make a US$25 mil loan to Tianjin Dagang NewSpring Co, a wholly owned subsidiary of SinoSpring that is currently building what will be China's largest desalination plant when completed.

Hyflux shares rose another 2.5 per cent to $2.43 yesterday, after gaining 3 per cent on Monday.

 

UOB-Kay Hian reported on the water sector. 'Its preferred China water plays r companies w/strong downstream integration such as distribution, given its belief that water tariffs will increase as part of the Chinese govt's efforts to manage scarce water. It also likes niche players which provide equipment or expertise, like Sinomem and Sino-Environment.

 

Hyflux stocks rise on news of World Bank funding

By Wong Wei Kong - Sep 20, 2006
The Business Times But investors should be selective of Chinese water plays: analysts.  A Bloomberg poll found oni 2 bullish recommendations out of 7. According to Global Water Intelligence, China will spend 200 bil yuan (S$40 bil) on water supply & another 200 bil yuan on sewage disposal projects from 06 to 2010. The mkt potential is huge & there's no lack of opportunities,' said UOB-Kay Hian in a report on the water sector. 'But it is getting competitive as more players enter the mkt, it's necessary to look at each coy on a case by case basis.' It also likes niche players which provide equipment or expertise, like Sinomem and Sino-Environment.

Companies with strong downstream integration such as distribution, given its belief that water tariffs will increase as part of the Chinese government's efforts to manage scarce water resources, cut inefficiency and promote conservation.

 

Hyflux very quite for today, Epure Int'l (ask IFC/world bank to give some support lehh...) may come to give some support laterrrr......

 

FYI: Hyflux got 12 projects going on in China. IFC (world bank group is big supporter of Miss Oliver Lam (CEO).So is Temasek Holding.

 

Hyflux lady boss sold  some share to...keep some $$$ for further investment, it px was beyond $3/- B4 she start selling. (FYI)

 

High side!!, the higher the better for EPure IPO where IFC (subsidairy of world bank) got 13.4% stake in it. Akan Datang..., coming soon. 

 

hyflux PE ratio seems on the high side

 

IFC also has a pre-IPO stake in Epure.

 

0826 [Dow Jones] Hyflux (600.SG) may add 2-3 cents after Sinospring Utility, its 50%-owned company, receives US$45 million of financing from International Finance Corp. Psychological resistance at S$2.40, level not breached since early June. SinoSpring is Hyflux's vehicle for China-based water treatment projects. IFC, the commercial lending arm of World Bank, will make US$20 million equity investment in SinoSpring, and provide US$25 million loan to finance construction of a sea water desalination plant in Dagang, Tianjin province. Stock rose 3.0% yesterday on heavy volume to close at S$2.37, highest point since July.(JEM)



In the deal, which was announced in June, the IFC will make a $20 million equity investment in SinoSpring Utility, which is 50% owned by Hyflux, and provide a $25 million loan to finance the construction of a sea water desalination plant in Dagang, Tianjin province.

1022 [Dow Jones] Sembcorp Industries (U96.SG) down 0.6% at S$3.32; not getting any boost from initial agreement to build water treatment plant in China's Tianjin city. Dealer says company "jumping on bandwagon" in China with firms like Hyflux (600.SG) but "it will take a bit of time to see if they can do a good deal out of it". Adds weakness in oil prices possibly also weighing on stock as company is major oil-rig builder in industry. Shares not expected to slip much more given thin volume of 389,000 shares.(FKH)

 

hi bryoxz,

I'm someone who doesn't believe in averaging. You might want to ask Livermore? I think he's an advocate of that.

Sorry... :)

 

Hi, i'm vested at 2.10 with 8 lots do you think now is a good time to average upawards? Thanks!

 

As expected.... Hyflux is uptrending slowly. 

 

Good v.good this water stock (Hyflux) goes up and it Pe ratio is well supported, it oso mean Epure pe ratio is oso going up liao. Lai ahh.. lai ahh... let us all see all water stocks goes up, anyway water stocks has creep up alittle bit liao, very goodi good for ipo Epure, will definitely tumtam big big from the word go......

 

  I think the counter should reach the next resistance at $2.39 very soon. That is also close to the half-way mark of the recent drop from $2.80 to $2.05 in May 06. 

 

  Clear through resistance at $2.28. Done up to $2.32. Can load up some more.

 

Hyflux may be on a gradual uptrend now.

 

Good good very good, now into India mkt, that mean my Epure Tnt'l coming...ipo (a water treatment stock with world bank subsidairy IFC having 13.4% interest) mean oso very good mkt.

 

At $2.26, its valuation is expensive at 38x FY06 PER and 23.4xFY07 PER. UBS has a price target of $2.30.



Q2 net profit was significantly lower than in the previous 3 quarters. This was primarily due to a significant increase in the cost of raw and consumable materials. Mgt indicated that it was 'lumpy' due to fluctuation in projects.



Hyflux expects 2H to be better with the completion of several projects. Structural growth looks promising, but main challenge is the execution of these projects and maintaining the profitability level.



It'll be entering the oil recycling business. It expects an ROE exceeding 20% of this business. Mgt said the business is expected to be very profitable as long as oil prices stay above US$50. The first plant is expected to be operational next month. This has not been factored into the price as not much details are available.



I believe the expectation for the oil recycling business is driving up the price.