Hyflux (600.SG) +1.6% at $3.18 after reporting modest 2Q10 earnings growth, but interest subdued as volume thin, says Dow Jones.

Analysts generally still hopeful of water treatment firm’s prospects, despite delay in plans to build 2 desalination plants in Libya (projects yet to be finalized despite being announced last year).

“Orderbook visibility should improve as the global economy recovers,” says JPMorgan, which has Overweight call with $3.60 target. Hyflux’s recent JV with Mitsui & Co. (8031.TO) will be closely watched as Japanese partner’s deep pockets expected to help company land larger, more complex projects in China.

“Management revealed that the industrial segment in China has started to see some pockets of demand and it intends to be there to capitalize on these opportunities,” says OCBC, which has Buy call with $3.89 target.

Resistance expected at $3.20, 5-day moving average. 2Q10 earnings +5% on year at $27.3 million.