Disclaimer: This information is provided to you for information only and is not intended to or nor will it create/induce the creation of any binding legal relations. It does not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or invest in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein are suitable for you. The information and/or materials are provided "as is" without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.

Thursday, 30 March 2017

800 Super

31/3/2017
Accumulate:
  1. Attractive valuation PE 10.72 for level of growth and stable industry
  2. Decent dividend yield ~2.9%
  3. Some levels of regional expansion
  4. New waste to energy plan to generate more revenue streams
Metrics
  • Last done (as of 31/3/2017): S$1.205
  • PE 10.72 (low for growth), PB 2.9
  • Revenue CAGR ~12%, Earnings CAGR ~23%
  • Total Debt to Equity 65%
  • Dividend yield ~2.9% (decent), Dividend CAGR ~35%
  • ROE 26.2%, ROA 12.7%
Operations
  • Waste management (waste collection and recycling services), cleaning and conservancy and horticultural services
  • Re-awarded a public waste collection contract for a period of 7 years and 9 months commencing from 1 January 2014 to provide waste collection services for the residential and trade premises in the Ang Mo Kio – Toa Payoh sector
Investment thesis
  • Upon its targeted completion in 2017, the Waste to energy plant at the Tuas South leasehold land is expected to generate new revenue streams and cost savings for the Group
  • Successfully expanded our business footprint regionally with the establishment of a plastic recycling subsidiary in Batam, Indonesia
  • "Strategic direction towards downstream waste treatment will create growth opportunities for 800 Super in the long haul" - value chain processing of waste into final product
Risks
  • Competition stealing business
  • Failure to execute expansion plans, or lack of further expansion plans
at
Labels: ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)