DBSV bullish on Water companies

Rising costs, difficulty in raising capital may have led to 30% year-to-date fall in Singapore's water-related stocks; but growth outlook for these companies remains firmly supported by record orderbooks, buoyant long-term demand, says DBS Vickers. Expects "already robust" orderbooks to continue expanding given companies' substantial exposure to China's buoyant water sector, ongoing venture into other high-growth markets like Middle East, North Africa, India. Says stronger players which can better handle cost increases, obtain funding for new projects will still be able to eke out decent growth, despite rising labor, material costs. Picks Epure($1.07 as fair value) ,Asia Environment($0.64), Hyflux($3.53), Hyflux Water Trust($0.90) as favorites.