RESEARCH ALERT-JPMorgan cuts Hyflux target to S$1.60

SINGAPORE Nov 4 (Reuters) - JPMorgan has lowered its target price on Singapore water treatment firm Hyflux Ltd to S$1.60 from S$1.70 and maintained its neutral rating.

STATEMENT:

Hyflux said on Thursday its third-quarter net profit fell 34 percent to S$12.6 million ($9.9 million) from a year earlier, hurt by lower contributions from the Middle East and North Africa.

JPMorgan trimmed its 2011 earnings estimate by 20 percent to account for lower earnings contribution from Hyflux's Tuas desalination plant in Singapore, slower construction pace in China, as well as higher staff and finance costs.

Hyflux management had highlighted that based on the current macroeconomic environment, it does not expect to make major new investments over the next 1-2 years, which will require it to commit significant additional capital, JPMorgan added.

At 0322 GMT, Hyflux shares were up 0.7 percent at S$1.415.

($1 = 1.272 Singapore dollars) (Reporting by Eveline Danubrata)