Serious Hyflux Profit Plunged 90% ... SGX Jinxed Jialat Jialat

[Pinkieslut]

Hyflux net profit plunges 90%, warns of challenges ahead

SINGAPORE -- Water treatment provider Hyflux warned Thursday of increasing challenges such as competition in the Middle East and low electricity prices in Singapore as April-June net profit fell 90% to 2.62 million Singapore dollars ($1.95 million).

The weak profit was despite a record order book of S$3.14 billion, as the company kept busy with a desalination plant project in Oman and a waste-to-energy plant project in Singapore.

Revenue almost tripled to S$259.9 million from S$94.8 million a year earlier, boosted by the projects in Oman and Singapore. However, costs increased accordingly. Due to the absence of divestment gains that the company recorded last year with the sale of five Chinese water companies, the bottom line shrank significantly.

"Because of the very few projects [available] in the market, we expect to see stiff competition" in the core Middle East and North Africa market, group CEO Olivia Lum told a press conference. The low oil price is causing cancellations and delays in infrastructure projects in the region, she explained.

The company also warned that an existing power plant co-located with a desalination facility in Singapore will suffer from weaker financial performance due to lower electricity prices in the city state.

Amid mounting challenges, Hyflux is banking on growth in its new consumer business. In a tie-up with Hungarian company Kaqun Europe, Hyflux has launched production and sales of oxygenated drinking water in Singapore. Lum plans to export the water to China, Malaysia and Indonesia and to expand the product line. "The consumer business will be a cushion in times of infrastructure downturns," Lum said.

 

[winnipegjets]

Another sinkapore flop ...what's new?

PAP government boasts of our expertise in water management and that the world is running to learn from us. Well, it seems that is a lie.

 

[maxsanic]

Hyflux has been loosing money for some time liao. It's net loss is even bigger this year, the reason why they can still report small profit is by accounting trick where the interest cost of the perpetual is classified as "profit" as well.

It seems to be a typical Creative story all over again. A Singaporean manage to be at right place at right time to clinch some business with technological edge, the government too eager to promote local entrepreneurs simply lionize their mostly luck driven achievements as if they are Singapore's answer to Bill Gates or Steve Jobs.

Problem is these chaps don't really have the vision or leadership to build a lasting adaptive world class company, so once others copy they are unable to innovate and have nothing new to offer, so end up lose market share and fight with low cost operators and lose even more money.

 

[eatshitndie]

i'm more interested in a plunging neckline.

 

[dr.wailing]

PAP government boasts of our expertise in water management and that the world is running to learn from us. Well, it seems that is a lie.

What about the following? Are they lies too?

1. Sinkapore practises meritocracy
2. Lee Con You transformed a sleepy fishing village of Sinkapore into a gleaming metropolis
3. Lee Con You is not corrupt, does not allow nepotism and cronyism in his government

 

[winnipegjets]

What about the following? Are they lies too?

1. Sinkapore practises meritocracy

Meritocracy my foot! Wayang only lah. How many of the scholarships are taken up by the children of the top 20 percent? How can a scholar who has nothing to show except for exam result earn million-dollar salary? How can the CEO of SMRT, a scholar, who has accomplished nothing, see his salary jumped 100 percent? Are these examples of meritocracy?

2. Lee Con You transformed a sleepy fishing village of Sinkapore into a gleaming metropolis

If you know development economics 101, you will know that sinkapore's growth is normal. Now that we are developed, we are stagnating because the controls used to put down dissent, independent thoughts and freedom are also stifling the creative spirit needed for innovation and entrepreneurship.

3. Lee Con You is not corrupt, does not allow nepotism and cronyism in his government

Sinkees have been conned. Corruption in sinkapore is legalized - like million-dollar salaries for cronies, special deals for ministers (like the thief who eats at Ting Da Fung for free) etc.

 

[virus]

Ah neh from devious bank will just pump more cash into it like throwing good $ after bad in swineber deal.

 

[yinyang]

Hyflux has been loosing money for some time liao. It's net loss is even bigger this year, the reason why they can still report small profit is by accounting trick where the interest cost of the perpetual is classified as "profit" as well..

Negative cash flow last 5 years, that speaks volumes for last perpetual bond call with 6% interest.
Profit recognition on ME work in progress projects helps with nos. and order books can count little for the average investor vs capital risks

https://www.fool.sg/2016/05/19/6-th...w-about-hyflux-ltds-new-perpetual-securities/

 

[blissquek]

i'm more interested in a plunging neckline.

Top marks for your honesty.

 

[ckmpd]

Another sinkapore flop ...what's new?

PAP government boasts of our expertise in water management and that the world is running to learn from us. Well, it seems that is a lie.

You mean you believed what the pap said?

 

[Brightkid]

In a technology driven business, without any new breakthroughs, your competitive advantage will only last you at most 5 years. Thereafter, in the world of technology, you become a dinasour amd die off. Look at Nokia, a one-time leader of mobile phone market. Is almost unknown now in the smart phone arena. Look at Creative Technology! They are all struggling now.

Start-up companies leapfrog to latest technology and beat the crap of business stuck in 'old world' technology.

Technology fads have even shorter lifespan.

A country that depended on technology and if without the home-grown expertise to keep driving it, is bound to fail sooner than later. That, is the shitpool SG with current leeders is swimming in.

 

[lifeafter41]

Negative cash flow last 5 years, that speaks volumes for last perpetual bond call with 6% interest.
Profit recognition on ME work in progress projects helps with nos. and order books can count little for the average investor vs capital risks

https://www.fool.sg/2016/05/19/6-th...w-about-hyflux-ltds-new-perpetual-securities/

Revenue at almost 260million, profit at 2.62million or slightly more than 1%. How to pay out the 6% perps and dividend moving ahead......

Hyflux perps used to be trading at a premium of 106 but now it's 101/102 (Retail). Will it go below par soon?.

 

[frenchbriefs]

Hyflux has been loosing money for some time liao. It's net loss is even bigger this year, the reason why they can still report small profit is by accounting trick where the interest cost of the perpetual is classified as "profit" as well.

It seems to be a typical Creative story all over again. A Singaporean manage to be at right place at right time to clinch some business with technological edge, the government too eager to promote local entrepreneurs simply lionize their mostly luck driven achievements as if they are Singapore's answer to Bill Gates or Steve Jobs.

Problem is these chaps don't really have the vision or leadership to build a lasting adaptive world class company, so once others copy they are unable to innovate and have nothing new to offer, so end up lose market share and fight with low cost operators and lose even more money.

This is why singapore should stay away from technological driven companies,sinkies just dont have the brains for it.no harm in going for the tried and true businesses.build a couple of palm oil plantations,start a hotel chain like shangri la.

 

[cocobobo]

In a technology driven business, without any new breakthroughs, your competitive advantage will only last you at most 5 years. Thereafter, in the world of technology, you become a dinasour amd die off. Look at Nokia, a one-time leader of mobile phone market. Is almost unknown now in the smart phone arena. Look at Creative Technology! They are all struggling now.

Start-up companies leapfrog to latest technology and beat the crap of business stuck in 'old world' technology.

Technology fads have even shorter lifespan.

A country that depended on technology and if without the home-grown expertise to keep driving it, is bound to fail sooner than later. That, is the shitpool SG with current leeders is swimming in.

hyflux is not really a technology company.
Its a system integrator, a bit like the sim lim shops buy processors, chassis and monitor and put together a pc, hyflux also do the same with water components and hey presto a water plant.
It get ahead by using cheaper and cheaper resources and labour, until they hit the bottom. Then die.

 

[virus]

they can always reinvent and call themselves hyflop.

 

[borom]

I think this is one area where Singapore can excel but a private sector company(starting from a small home base) may not have the resource to compete internationally in the longer run.

Even within Singapore, will they be able to compete on equal footing with Keppel and Sembcorp (operating the Ulu Pandan and Changi NEWater plants under DBOO concessions) in the long run?

What is the cost of funds for Hyflux (see its perpetual securities) and for GLC's like Keppel and Semborp (even with its Sete Brasil fiasco)?

 

[Pinkieslut]

hyflux is not really a technology company.
Its a system integrator, a bit like the sim lim shops buy processors, chassis and monitor and put together a pc, hyflux also do the same with water components and hey presto a water plant.
It get ahead by using cheaper and cheaper resources and labour, until they hit the bottom. Then die.

You are correct. Hyflux is not different from ST group, or Keppel. SI compay claiming to be technology company. In fact their membranes were bought mainly from the Japanese if I am right is from Mitsubishi group.

What Singapore could have done is to follow many Angmo tech firms or like the Israeli, who is purely focusing on design and IP research licensing those out for millions of dollars without the need to massive import of faked cheap talents and using our CPF money to put into risky high capital investment projects (which almost all of our GLC business are in).

 

[bart12]

The reason it is going from 106 to 102 is because it will be callable in 2018 since it successfully raised another 500 million 2 months ago .. which means u are getting >5% YTM for Hyflux perps.

Revenue at almost 260million, profit at 2.62million or slightly more than 1%. How to pay out the 6% perps and dividend moving ahead......

Hyflux perps used to be trading at a premium of 106 but now it's 101/102 (Retail). Will it go below par soon?.

 

[winnipegjets]

You are correct. Hyflux is not different from ST group, or Keppel. SI compay claiming to be technology company. In fact their membranes were bought mainly from the Japanese if I am right is from Mitsubishi group.

What Singapore could have done is to follow many Angmo tech firms or like the Israeli, who is purely focusing on design and IP research licensing those out for millions of dollars without the need to massive import of faked cheap talents and using our CPF money to put into risky high capital investment projects (which almost all of our GLC business are in).

I thought they have their own technology. We have been conned.

http://www.hyfluxmembranes.com/
The Group’s track record includes Singapore’s first water recycling plant and two seawater reverse osmosis (SWRO) desalination plants, and some of the world’s largest SWRO desalination plants in Algeria, China, Oman, Saudi Arabia and Singapore. The Group is also developing Asia’s first Integrated Water and Power Project and Singapore’s largest waste-to-energy plant.

 

[Pinkieslut]

I thought they have their own technology. We have been conned.

http://www.hyfluxmembranes.com/
The Group’s track record includes Singapore’s first water recycling plant and two seawater reverse osmosis (SWRO) desalination plants, and some of the world’s largest SWRO desalination plants in Algeria, China, Oman, Saudi Arabia and Singapore. The Group is also developing Asia’s first Integrated Water and Power Project and Singapore’s largest waste-to-energy plant.

Hyflux is like Keppel, mainly assembly of water desalination/filtration plants. The membranes are from other companies especially Japan. Industrial Giants like Mitsubishi Rayon and Asahi are leaders in this area.

You can read it up from Sembcorp's latest press release July 2016:

Sembcorp Industries (Sembcorp) is pleased to announce that it has signed memoranda of understanding (MOUs) today with Mitsubishi Electric and Scinor (Asia) respectively, to test-bed new technologies for water, under the Sembcorp Industrial Living Lab initiative. These technologies will be tested at Sembcorp’s facilities, enabling them to be proven in an industrial setting and allowing Sembcorp to apply new and disruptive solutions. They are:

a) Mitsubishi Electric’s Eco-MBR, a novel ozone backwashing membrane bioreactor (MBR)

This patent-pending technology provides better membrane permeability, higher flux, and requires less membranes to be utilised, making for more energy-saving, compact, wastewater treatment and water reuse plants that cost less in the long run. Eco-MBR will be applied at Sembcorp’s plants together with next-generation ozone-resistant membranes made by Asahi Kasei.

b) Scinor (Asia)’s newest polyvinylidene fluoride (PVDF) membranes
Made using thermally induced phase separation (TIPS), these proprietary membranes for microfiltration and MBR plants offer significant energy savings of up to 30% due to higher flux, as well as improved performance and shorter backwash durations. In addition, the technology also allows for longer membrane life and extended plant life cycles.

The MOUs were signed during Singapore International Water Week 2016, by Siah Keng Boon, Chief Technology Officer of Sembcorp Industries; Eiichiro Mitani, Senior General Manager of Kobe Works at Mitsubishi Electric; and Edmund Wong, General Manager of Scinor (Asia). The signings were witnessed by Tang Kin Fei, Group President & CEO of Sembcorp Industries; Sachio Asanagi, Senior General Manager, Microza & Water Processing Division, Asahi Kasei Corporation; Zhao Jie, CEO of Beijing Scinor Membrane Technology; and Goh Chee Kiong, Executive Director for Cleantech, EDB. Please refer to the Annex for further details on the collaborations. These collaborations are the first under the umbrella of the S$8 million Sembcorp Industrial Living Lab initiative, launched by Sembcorp and EDB in 2015. Under this initiative, Sembcorp will grant selected technology providers access to its facilities for late-stage test-bedding and co-innovation in areas such as water and cleantech solutions.

Quotes
“As a global water company with a rich history of being innovation-driven, Sembcorp looks forward to working with Mitsubishi Electric and Scinor to testbed new and novel technologies. These represent advancements over the current state of art, and have the potential to bring about significant benefits, such as energy savings, better performance and lower life cycle cost.”
– Siah Keng Boon, Chief Technology Officer, Sembcorp Industries

“It is our great pleasure to collaborate with Sembcorp, a global leader in industrial and municipal water solutions. We believe our advanced membrane bioreactor can contribute to more sustainable water recycling worldwide, and that test-bedding it with Sembcorp will be mutually beneficial to both our companies.”
– Eiichiro Mitani, Senior General Manager of Kobe Works, Mitsubishi Electric

“It is our honour to be chosen by Sembcorp Industries to participate in the Sembcorp Industrial Living Lab initiative. This initiative will enable Scinor to demonstrate how our proprietary TIPS membrane technology can improve plant performance, and help Sembcorp’s facility and other membrane plants elsewhere become more energy-efficient and have lower life cycle cost. ”
– Edmund Wong, General Manager, Scinor (Asia)

“We are pleased that Sembcorp’s Industrial Living Lab initiative has garnered significant interest from international players looking to capture value from industrial water solutions. These two collaborations with Sembcorp are a testament to Singapore’s position as a global hydrohub where companies are able to effectively pilot and commercialise new water innovations.”
– Goh Chee Kiong, Executive Director, Cleantech, EDB

Plain and simple for all to see there is no IPs in our "technology" company. The CTO's job is just to go around shopping for "technologies". It was probably also not done by him, but by some fresh graduate doing internet research, making a few phone calls and arranging meetings LOL.