Latest : Hyflux 6% CPS redemption deferred


  • Redemption of Hyflux 6% CPS (N2H.SI) deferred until Tuaspring divestment.  The process of selling Tuaspring has taken longer than initially expected, Hyflux is committed to the partial divestment of Tuaspring at an acceptable price
  • Coupon yield for the Hyflux 6% will be stepped up from 6% to 8% after 24 Apr 2018
  • Hyflux cash balance of S$314 million, excluding another S$77 million held for sale
  • HYFLUX posted net loss of S$116.4M in FY2017, loss driven by weak Singapore electricity market
  • The oversupply of gas in the Singapore market has resulted in depressed electricity prices
    sold by power generation companies to the national grid. This continued weakness in the
    Singapore power market is expected to pose challenges for the Hyflux’s performance in
    2018. Unless the Singapore power market shows improvement, Hyflux expects to
    continue recording losses in 2018

Sell on rumour, buy on news? No, not for me. Only when any of the following is triggered will I consider to buy:

  1. Price at $50 or lower
  2. Hyflux makes insider trades of buying up Hyflux 6% CPS at market price
  3. More clarity on when Tuaspring can be divested
  4. Hyflux becomes postive or electricity prices increase substantially.

Here is the current market depth at 9.08am. Looks like there are more buyers than sellers at the current moment.


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