RESEARCH ALERT-CIMB downgrades Hyflux to trading sell

---

Feb 23 (Reuters) – CIMB Research downgraded
Singapore water treatment firm Hyflux Ltd to trading
sell from neutral and cut its target price to S$1.23 from
S$1.28.

By 0246 GMT, shares of Hyflux were 3.8 percent lower at
S$1.52, but have gained 26 percent since the start of the year.

STATEMENT:

Hyflux said on Wednesday its net profit for 2011 fell 40
percent to S$53 million, hurt by lower sales as its projects in
the Middle East neared completion and the Arab Spring riots
affected new contracts.

Although Hyflux’s core profit beat CIMB’s forecasts, the
brokerage downgraded the stock as it said its outlook for the
business remains challenging without new project wins.

CIMB said the company’s dependence on a single major
project– its Tuas desalination plant, could also dent
investors’ confidence.

“We find it hard to remain bullish as volatile earnings and
major capex could add to selling pressure,” the brokerage said.

(Reporting by Charmian Kok; Editing by Anshuman Daga)

This entry passed through the Full-Text RSS service — if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers. Five Filters recommends: Donate to Wikileaks.

See the original post:
RESEARCH ALERT-CIMB downgrades Hyflux to trading sell