The Straits Times / The Business Times News on Hyflux

Directors' trades

HYFLUX DIRECTOR BEEFS UP DIRECT STAKE

HYFLUX director Christopher Murugasu has increased his direct stake in the water treatment company after exercising 37,500 share options.

The transaction by Mr Murugasu on Tuesday lifted his holding from 431,875 shares to 469,375 shares, or 0.09 per cent.

The average price he paid for exercising the options was 72.53 cents a share, according to filings with the Singapore Exchange on Tuesday.

Based on yesterday's closing price of $2.25, Mr Murugasu, who was appointed a non-independent director and member of the remuneration committee in February last year, is sitting on a paper profit of $57,176.25.

While Hyflux shares have rebounded from their year-lows of $2.05 in June this year, the counter has been sold down recently following disappointing third- quarter results.

It posted an 86 per cent decline in net profit to $1.88 million and also cautioned of a 'marginally profitable' fourth quarter on the back of increased business development and financing costs.

Third-quarter revenue also dropped 42 per cent to $29.44 million, in part attributed to lower sales from Singapore.

UBS Investment Research said earnings for the third quarter came in at $1.9 million, significantly below their $10 million estimate.

UBS expects the company's near-term earnings to be subdued and volatile, but returns in the long term to be rewarding as the growth potential of the industry and Hyflux's ability to capture it remains strong. UBS has a neutral rating on the counter, with a price target $2.70.