HanKore is doing well in the eyes of investors as it has capacity expansion, higher water tariffs and the
recently-acquired EPC business. Higher margins are also expected.
Valuation-wise, it is cheap compared to other water plays. But we need to see the delivery of solid results, going forward.
As a student in Envionmental Engineering, I can tell u we are facing fresh water shortages not in Singapore but in the world.
Fresh water (drinkable) only accounts for around 2.5% of total water. and around 1.5-2% of water are locked in ice caps; only around 1% of water are groundwater. and we will really run out soon.
Hence solution is 1. Water desalination via reverse osmosis,
or 2. wastewater treatment. (new water)
Hyflux indeed has high capex, and alot of debt; but it's the nature of the business itself which requires high costs.
Given the high demand for water treatment in the long run; I am confident that Hyflux can secure more contracts in the long term.
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