kcchiew 于 23-3-2005 21:33 说 :
首先是Hyflux, $2.80 它在这价位很久了, 抗跌性蛮强的. 长期投资. 最重要的是它不受美国经济情况影响.
JPMorgan ups Hyflux price target to $4.93
It bases 41% upside on strong global demand for water treatment solutions
EVEN as Hyflux's shares zoomed to a new high in recent days, JPMorgan raised its 12-month price target for the water treatment company to $4.93 a share on the back of strong global demand for water treatment solutions. That's another 41 per cent upside for a stock that has already outpaced the blue chip Straits Times Index (STI).
Yesterday, Hyflux ended unchanged at $3.50 after hitting a record intra-day high of $3.72. The stock has risen 16 per cent since the start of the year. In contrast, the STI has only risen about 5 per cent.
In a report entitled 'High Flux of Profits' issued on Monday, JPMorgan said based on a comparison to Hyflux's closest rival, Toronto-listed Zenon Environment, Hyflux could even be worth $5.04 a share.
'Zenon currently trades at a P/E (price/earnings) of 35 times the estimated FY05 earnings and 28 times the estimated FY06 earnings. Using a similar P/E of 35 times, Hyflux could be valued at $5.04, adjusted for a 20 per cent dilution,' analyst Winnifred Heap said.
However, the 12-month target was raised to $4.93 a share based on JPMorgan's multi-stage discounted cash flow model.
The upgrade was based on the strong global demand for water treatment solutions, a stronger municipal order book which Hyflux could potentially secure and the earnings boost on the complete sell-down of Hyflux's stake in the Tuas desalination plant this year.
'This, coupled with an already strong earnings driver found in their industrial project segment, bodes well for Hyflux,' Ms Heap said.
JPMorgan also raised its 2005 net profit forecast for Hyflux to $70.9 million from $50 million previously. The forecast for 2006 has also been raised to $71.5 million from $63 million.
At the same time, Ms Heap noted that Hyflux would face a shortage of funds in its quest to secure a $1 billion order book (from current confirmed orders of $234 million). This would imply a need for at least another $200 million (staggered) in cash to fund its equity stake in these projects. 'We thus believe that raising debt or equity in the near future is inevitable. We are assuming a one-time $200 million equity issue, in the worst case scenario, which would suffice,' Ms Heap said.
But with the expected high return on investment from the deployment of these funds, she does not see the funding as a stumbling block.