Hyflux

[Behappyalways]

Hyflux FY2016
http://infopub.sgx.com/FileOpen/Hyflux_F...eID=440402

Profit of $4.762m Vs $52.45m a year ago. If adjusted for dividends attributable to perpetual preference shares and perpetual capital securities, EPS was a NEGATIVE 7.51cents due to $63.8m 'dividends'

NTA as of FY2016 is 45.1 cents. BUT equity of $1.528b out of which $790m perpetual capital securities and $1.108b (1.084+0.024) intangible assets.

[karlmarx]

Hyflux remains financially weak, due to losses from Tuaspring. It is expected to continue posting losses for the next two quarters. I did not know the Singapore electricity market was this competitive. How much can Hyflux expect to receive from the sale of Tuaspring?

http://infopub.sgx.com/FileOpen/Hyflux%2...eID=465324

[CY09]

If i remember offhand, Singapore is actually supplying more electricity to the power grid than the country is consuming.

As for Hyflux's balance sheet, it seems they are making a lot of asset sales. Let's see how much of the assets will be converted to cold hard cash which in turn, is likely used to repay all the bonds and perps. Somehow Hyflux reminds me of Noble except instead of derivatives, it is in the form of desalination plants and associates/JVs.

[karlmarx]

On page 17 of Sembcorp Industries' latest results briefing, net profit for the 'energy' division in Singapore is up from $19.6m in HY16 to $32.1m in HY17. While SCI also commented on the competitive Singapore energy market, they seem to be doing quite ok. Not sure what to make of this.

http://infopub.sgx.com/FileOpen/SCI_1H20...eID=465340

I'm not sure how marketable Tuaspring is, given its profitability. Assuming that they are able to realise it at book value, and hence use the proceeds to repay loans and perpetual securities, it is still difficult to value Hyflux; the remaining business units have not proven to be stable cash generators. Its consumer business Elo should be relatively small.

[Sierra]

Now "At a first-year price of $0.91 per cubic metre, TP-STM offered the most competitive tariff among the three bidders and will supply desalinated water to PUB over a 25-year period from 2020 to 2045."

Then "The desalination plant, to be located in Tuas, will be constructed under a Design, Build, Own and Operate (DBOO) model. It is expected to commence operations in 2013 and will add another 70 imperial million gallons (mgd) or 318,500 cubic metres of desalinated water per day to Singapore’s water supply. The first-year price for the desalinated water is $0.45 per cubic metre."

So much difference in water price.

[specuvestor]

Jan. 26 (Business Times) -- INVESTORS sniffing for yield would have noticed that Hyflux's 6 per cent preference shares, issued at S$100 apiece, now trade below par at S$92.67 even with the first call date nearing on April 25.
The first of a kind upon their market debut in 2011, Hyflux's S$400 million perpetual securities were an instant hit, bid up above par in the earlier years as retirees chased the 6 per cent semi-annual coupon like it was the best thing since sliced bread.
Fast forward to 2018 however, and the big question is whether or not Hyflux will be able to retire the perps come April, or incur a steep interest rate step-up to 8 per cent.
Banks wouldn't be keen to refinance the highly-leveraged water project developer which has not generated positive cashflow from operations since 2009.
The only way Hyflux can procure enough cash to service its perps is through asset divestments, which it expected to complete last year but has not.
In February last year, Hyflux said it was planning to partially divest up to 70 per cent of Tuaspring water desalination and power plant, held on its books at a value of S$1.3 billion.
Since Oct 2016, it has also been trying to sell the Tianjin Dagang desalination plant in China which has a book value of S$150 million.

--snip--

[CY09]

http://infopub.sgx.com/FileOpen/Announce...eID=487395

Hyflux's CEO Ms Olivia Lum has to provide a takeover offer of $0.1783 per Hyfluxhop shares which it recently gave its shareholders at a 1 to 10 ordinary Hyflux share ratio.

[SpaceX]

Hi CY09，can help explain with simple English?Couldn't figure out what the announcement means. Thanks


Sent from my iPad using Tapatalk

[CY09]

Ms Olivia Lum is offering to takeover Hyfluxhop shares, which was recently distributed to Hyflu shareholders as dividends in specie, at a price of $0.1783

[AQ.]

To add on:

1. Hyflux owned 100% of HyfluxShop, which is the consumer biz related to Elo water.

2. Hyflux distributed HyfluxShop on 1for10 basis to existing shareholders. At this point, HyfluxShop is an unlisted company. 

3. Ultimately it seems that HyfluxShop will be listed on some exchange someday, but Olivia Lum is offering to buy the currently unlisted HyfluxShop from shareholders who want to sell their stakes, up to a cap, to provide bid liquidity.

4. Since Olivia Lum owns 30+% of Hyflux, and Hyflux is expected to own 30% of HyfluxShop post-distribution, Olivia Lum's effective interest is 54% on a pro-rata basis. 

5. However, SIC says that since Olivia Lum already has such a large stake, she is obliged to make a general offer, and not a partial offer, for HyfluxShop.

6. So she will make a general offer of $0.1783 to all shareholders for HyfluxShop. 

7. NTA of HyfluxShop is $0.1783 (~$20mio) and made a loss of $6.3mio in FY16.

(not vested in Hyflux)