The Straits Times / The Business Times News on Hyflux

Hyflux investors set to gain as stock soars

SHARES of water treatment firm Hyflux are boiling hot and yesterday, they hit an all-time high of $5.05, up 17 cents.

The stock has risen more than 83 per cent this year alone.

Analysts, such as those at GK Goh Research, have been impressed with the firm's progress in setting up its overseas operations.

GK Goh recently said that the company's order book could rise to $930 million within a year, up from $234 million, as water shortages become more prevalent.

'Hyflux is a proxy for the global water crisis and its track record justifies a premium,' said GK Goh, which has a 'buy' recommendation on the counter.

Besides those holding Hyflux shares, punters who bought Hyflux warrants issued by Macquarie Bank last month are also set to gain.

Yesterday, these warrants were traded 1.1 million times before they closed at 60.5 cents, up 8.5 cents.

These warrants have a strike price of $4 and expire in December.

'The interest in Hyflux reflects the market's confidence in the company and its ability to deliver,' a dealer said yesterday. The interest in Hyflux warrants is also likely to continue as the underlying share price rises even further.

UBS Research, for instance, has a price target of $5.90 on Hyflux.

AZRIN ASMANI