Maybank Kim Eng says Hyflux’s 2Q15 results came in “below expectations” on the back of lower volume of construction work, following the substantial completion of Tuaspring plant.
While revenues rose 18% to $94.8 million and earnings declined 58% to $26 million, it was distorted by one-off items, such as the $42.5 million one-off gain from the divestment of China water during the current quarter, and the $83.5 million one-off gain from the sale of Hyflux Innovation Centre in 2Q14.
Excluding the one-offs, core revenue would be down 35%, and the group would have reported a loss of $16.5 million, compared with a net loss of $22.1 million for 2Q14.
Maybank’s Wei Bin says in a note published on Aug 11 that the Tuaspring power plant is currently in its commissioning stage and is expected to be operational in early 2016.
The analyst expects Hyflux’s 2H15 results to be better as the development of new projects in Oman and Saudi Arabia begins to contribute to the group’s results.
Wei has lowered Hyflux’s EPS forecasts by 5% for the next three years, and notes that large contract wins would be needed to stimulate the stock price.
Hyflux is trading 1.2% lower at 83 cents as at 9.49am.
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While revenues rose 18% to $94.8 million and earnings declined 58% to $26 million, it was distorted by one-off items, such as the $42.5 million one-off gain from the divestment of China water during the current quarter, and the $83.5 million one-off gain from the sale of Hyflux Innovation Centre in 2Q14.
Excluding the one-offs, core revenue would be down 35%, and the group would have reported a loss of $16.5 million, compared with a net loss of $22.1 million for 2Q14.
Maybank’s Wei Bin says in a note published on Aug 11 that the Tuaspring power plant is currently in its commissioning stage and is expected to be operational in early 2016.
The analyst expects Hyflux’s 2H15 results to be better as the development of new projects in Oman and Saudi Arabia begins to contribute to the group’s results.
Wei has lowered Hyflux’s EPS forecasts by 5% for the next three years, and notes that large contract wins would be needed to stimulate the stock price.
Hyflux is trading 1.2% lower at 83 cents as at 9.49am.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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