Einschätzung " In Wasseraufbereitung ist man nicht schlecht investiert" www.asiawatertech.com ARTIKEL ZU SHIFT VON HYFLUX IN ASIA WATER VON AFX SINGAPORE
Please see below an article confirming our view: Some Singapore water stocks are great companies, but with PE-Ratios of 25x or 30x, they are overvalued, while the small, fast growing niche players are ridiculously undervalued, especially Asia Water with its PE of about 5x, good growth, and a leading position in an interesting niche.
No wonder that a certain arbitrage process has started. The result could be convergence of the big stocks down to PE 18-20x and the small ones rise to about 13-15x.
Such an adjustment would cause Asia water to rise about 3 times.
Out of the 2 stocks mentioned in the article below, we prefer Asia Water Technologies over the other " small guy" , Darco, because AWT is not only cheaper, but also has more competence (AWT is successful in several technologically challenging areas, while Darco is only active in wastewater treatment).
STOCK ALERT - Singapore's Asia Water, Darco up as investors switch from Hyflux
SINGAPORE (XFN-ASIA) - Smaller capitalized Asia Water Technology Ltd and Darco Water Technologies Ltd were sharply higher as investors appear to be switching out of Hyflux Ltd and buying other water sector stocks, dealers said.
Hyflux has fallen over 7 pct this week after its chief executive officer, Olivia Lum, sold 12 mln shares in the company and key shareholder 2G Capital unloaded 15 mln shares. The price at which the shares were sold was not disclosed but market sources said the shares were sold at 3.45 sgd each in a deal handled by JP Morgan.
" Investors could be switching from Hyflux to the other water plays," Westcomb Financial analyst Irvine Chiam said. Chiam, who has a " sell" rating on Hyflux, covers Asia Water which he said is benefiting from increased investments in electricity generation facilities in China. He has a " buy" rating on Asia Water with a fair value of 0.45 sgd.
Meanwhile, Darco Water said yesterday that it is confident that its joint venture water project in Deqing in China will be completed in the first quarter of 2006, after a two-year delay. The project is expected to generate annual revenues of 4-5 mln sgd.
Asia Water was up 0.02 sgd or 5.88 pct at 0.36 with 1.73 mln shares while Darco Water added 0.01 sgd or 4.88 pct at 0.215 on 217,000 shares. Hyflux was down 0.04 sgd or 1.17 pct at 3.38 on volume of 808,000 shares.
(1 usd = 1.68 sgd)
http://finance.yahoo.com/q?s=5GB.SI&d=t |
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