Hyflux 6% Perpetual Securities

[zuoom]

er, perpetual securities can touch one??

 

[arctician]

Placement results out, looks like the big boys are hungry for yield. $217m subscribed for $50m, now the placement allocation is $165m and public offer is only $115m.

http://infopub.sgx.com/Apps?A=COW_C...rities - Placement Closing NR 18 May 2016.pdf

http://infopub.sgx.com/Apps?A=COW_C...ose of Placement Announcement 18 May 2016.pdf

5x oversubscribed..very good sign

gg to whack this weekend..hope can get some private placement

 

[arctician]

erm... i think cannot like that see

usually for most IPO the insti tranche is way bigger than retail tranche... sometimes insti tranche is 10x or 20x bigger

but for this issue the insti tranche is way way small than usual

however still, the retail tranche will be over subcribed for sure as investors are hungry for yield and blind on the fundamentals

I expect retail tranche to be 2-3 times over subscribed cheers

ya i know..but still 4x oversubscription for institutional investors are a good sign

i subscribed to the perps few years back..only got allocated 20% and up 4% on first day

if you got allocated $100k and it move up by 5%, $5k in pocket

 

[w1rbelw1nd]

ya i know..but still 4x oversubscription for institutional investors are a good sign

i subscribed to the perps few years back..only got allocated 20% and up 4% on first day

if you got allocated $100k and it move up by 5%, $5k in pocket

All these insurance companies, banks, investment firms etc are in a much better position to take on these risky perpetuals than us peasants... They have access to OTC bond markets to diversify their risk. So having these institutions subscribe may just mean that risk is not too big for them. But for us the same cannot be said...

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[Weaboo]

Yea I rmb Liao that's why I deleted my post

OTC market few hundred over bonds to buy and build a portfolio
but retail market for SGX.. think only like 6-7 decent bonds so harder to build a bond portfolio

example building a ladder bond portfolio
https://www.fidelity.com/viewpoints/bond-ladder-strategy

for sgx market... very hard to do so for retail investors

 

[arctician]

in 2011 i think hyflux was like a hot stock, $2+
the IPO was very hot, u get 20% very good liao
and yeah first day up can take profit liao

this time round... after 5 years
hyflux fundamentals has weaken, and investors expect rates to go up
so I dont think it will be as hot
ppl will still press ba, but dun think will give 20% so less... likely will be more... I have to guess maybe 40-50% for retail

i never think so much, just know i have to press, stag and go

to me this is low risk high return

 

[SCG8866T]

i never think so much, just know i have to press, stag and go

to me this is low risk high return

Hyflux has much better fundamentals than oxley and aspial. Although cant compare like that as water business very diff from property business which needs alot more loan. Net asset after deducting all liabilities is ard S$1.2bil. Net debt to equity also below 1 at 0.99x. They supplying 35% of water in Singapore. Their 750mil waste to energy contract with NEA will give them a decade of recurring income. Only prob i see is their cash flow, future order book growth and debt management. Their loan interest is eating away at their bottom line.

 

[SpinFire]

Hyflux has much better fundamentals than oxley and aspial. Although cant compare like that as water business very diff from property business which needs alot more loan. Net asset after deducting all liabilities is ard S$1.2bil. Net debt to equity also below 1 at 0.99x. They supplying 35% of water in Singapore. Their 750mil waste to energy contract with NEA will give them a decade of recurring income. Only prob i see is their cash flow, future order book growth and debt management. Their loan interest is eating away at their bottom line.

Does the debt component used in calculation include the preferred shares and perpetual securities? If I'm not wrong, these loans are considered equity on the balance sheet, and may understate the debt levels.

I wonder how's the subscription rate for the tranche reserved for Hyflux staff. The placement tranche subscription is hot. Any insiders here who can comment?

 

[thegodfather]

may i know how does one subscrible or buy this? o have never bought bonds before can anyone share and is there a min amount? 6% /year is not bad leh..

 

[luxcan]

I wouldn't touch it

I have been following (or own) hyflux stocks since 2013. It seems to me that Hyflux is having difficulties sourcing for new incomes or meeting construction deadline (which in the end incurred further operating costs).


Dahej Plant
They are rewarded to build a 336,000 m3/day SWRO desalination plant in Dahej in 2012. In their 2013 and 2014 annual reports, they have been reporting that they are "working on it". In 2015 report, they have secretly remove the project.

What actually happened to it:
http://www.financialexpress.com/art...ination-plant-yet-to-see-light-of-day/122971/


Tuaspring
Won tender to build desalination plant and a power facility to power up the desalination plant in 2011. The desalination plant has been completed in 2013 but the power facility has been delayed til 2015 which incurred extra operating costs as the plant has to "buy" power from other sources.

Losing out on local desalination plant contracts.
As someone mentioned, most of Hyflux revenues comes from Singapore, hence it is worrying that Hyflux started to lose out local desalination and newater contract (after Tuaspring project).

http://news.asiaone.com/news/singapore/consortium-build-new-newater-plant-changi
http://www.channelnewsasia.com/news/business/hsl-constructor-to-build/2265030.html

It is important to see if Hyflux manage to clinch the upcoming 4th desalination plant.



Disclaimer: Above is just my noob opinion on Hyflux and yes, i am still holding Hyflux stocks.

 

[arctician]

i dont hold any hyflux stocks, but i hold their CPS since 2011

the gist is..hyflux is not a gd stock to hold long term, but its a definite good stag

i will be happy to get $50k of allocation

 

[Optionstrader]

uncles and auntie will buy

I am not pressing for sure

i rather get a good reit that pays 6% than a 6% junk bond

it's a junk bond

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[Optionstrader]

From 2 dollar plus to 56 cents

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[Dix]

Did any of you read the newspaper ad that state:"The issuer may, at its sole discretion, elect not to pay a distribution, scheduled to be paid on a Distribution Payment Datem..."?
Anyone can advise on above?

 

[arctician]

think it has a cumulative feature

not gd to hold..but gd to pump in and out

 

[Optionstrader]

Did any of you read the newspaper ad that state:"The issuer may, at its sold discretion, elect not to pay a distribution, scheduled to be paid on a Distribution Payment Datem..."?
Anyone can advise on above?

hyflux is a freaking scam!!!

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[Dix]

EDIT: PHS is out, wow, seems like a damn good deal unless Hyflux calls it back (it's an "all or nothing" callable, first call date May 2020)? Usually this sort of terms is only available for institutionals/AIs, I think. And at 6% for the next 4 years...wow. If the 4-year SOR rate goes up in 2020, Hyflux will definitely have to call this.

Let's say the SOR rate is very low in 4 years time...the new rate after 4 years came out to 6.1%....does this new rate stay for another 4 years? How does it work?

 

[thegodfather]

during semb corp agm, ceo got mention that nowadays water treatment technology is quite open... a lot of companies are able to build water treatment plants, thus the returns on investments in this area is very low

not sure if you know but sembcorp is planing to do energy and water treatment.

 

[Wood41]

Don't read too much.
Buy not bye.
Buy for fun.

 

[arctician]

do u think hyflux will open below PAR on 1st day? chances are near to zero

just because of this reason i will buy

a 1% upside for $100k allocation equals to $1k liao..alot money..this low cost high return strategy with zero commission in a single day..hard to find

edit: should be low risk high return lol