Hyflux more than doubles 3Q08 net profit

Hyflux sharply higher after the water treatment company reports more than doubling of 3Q08 net profit to $18.5 m on back of growing work in China, Middle East, North Africa. Credit Suisse says results in line with forecasts, company continues to expect strong growth in China, is encouraged by China's focus on infrastructure spending; maintains Outperform rating and unchanged $2.67 target price. But Nomura is more cautious, "we remain concerned at Hyflux's equity-dependent asset-light model;" puts current Buy rating under review with negative bias. JPMorgan says results were "robust," ahead of broker''s estimates due to strong performance in municipal sector, better-than-expected profit margin. Broker adds water sector outlook remains positive, company is addressing its financing issues; maintains Overweight rating with $3.00 target price.