Brokers' Take

HYFLUX, Feb 24 close : $2.89 (+12)

25 February 2005
The Business Times

UOB Kay Hian

FY04 net profit increased 37 per cent to $26.8 million or 8.4 cents per share. The net profit is 26 per cent above our expectation of $21.2 million and 14 per cent higher than the market consensus. The better than expected results is mainly due to higher than expected sales from China and better than expected profit margin in 4Q04.

Proposed 1-for-2 bonus issue could only improve liquidity of the stock and has little impact on the value of company. Valuation at 33 times historical PE and 26 times forward PE, coupled with high financial risk, is expensive.

MAINTAIN SELL

Compiled by JEAN CHUA