Hyflux (600.SG) +3.0% at $2.41, vs STI +0.1% with just over half its 50-day average volume traded already, after the water treatment firm says it won deals to develop 3 water projects at Hechuan Industrial Park in Chongqing City, China.

Hyflux will invest around US$45 million ($58.3 million) in 3 BOT (Built-Own-Transfer) projects, which it will fund via internal resources and will operate the plants (2 wastewater treatment and 1 potable water treatment) over a 30-year concession period.

OCBC analyst Carey Wong says: “Hyflux remains well positioned to win more wastewater contracts in China, where the country continues to face issues with its scarce water resources.”

House estimates that the latest orders would bump up Hyflux’s order book to around $1773.5 million (though expects around $100 million to be recognized in 4Q10). “We will be speaking with management to get more updates. Until then, we place our Buy rating and $2.44 (adjusted) fair value under review.” Orderbook quotes suggest a $2.42 near-term cap.