By Jake Lloyd-Smith and Susan Li
Nov. 11 (Bloomberg) -- Hyflux Ltd., a water-treatment company that gets about 90 percent of sales from government contracts, expects to gain from China's 4 trillion yuan ($586 billion) stimulus plan.
``The stimulus package is going to help to unblock the current projects that is stalled and create new ones,'' Deputy Chief Executive Officer Sam Ong said today in an interview. ``Hyflux, in the area of water, will benefit.''
China's stimulus package, announced on Nov. 9, targets rural infrastructure, railways, power grids, and social welfare to raise incomes and boost growth in the world's fourth-largest economy. Singapore-based Hyflux builds water-treatment plants in provincial Chinese cities as well as the Middle East.
About ``90 percent of our revenue comes from the government and half of that comes from China,'' Ong told Bloomberg Television. ``We believe the stimulus plan is going to help in the area of water infrastructure development.''
Hyflux added as much as 5.5 percent to S$2.10, the highest intraday price since Oct. 7, extending an 8.2 percent climb yesterday as Asian equities and commodity prices rallied after the spending plan was unveiled. The shares were 3 percent higher at S$2.05 at 11:52 a.m. in Singapore, while the Straits Times Index declined 1.4 percent at the same time.
To contact the reporters for this story: Jake Lloyd-Smith at jlloydsmith@bloomberg.net; Susan Li at sli31@bloomberg.net
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