Excerpts from analyst's report

Phillip Securities analyst: Richard Leow CFTe, FRM

What is the news? 
National Environment Agency (NEA) published waste and recycling statistics for 2015 last week. Key highlights were the growth in waste disposed and growth in recycling. (Source

More waste generated in 2015. The amount of waste generated in 2015 increased to 7.67mn tonnes, a +2.1% increase over 2014. NEA commented that this was in tandem with population growth and higher affluence. 

Overall recycling rate was up too. The amount of waste recycled grew +4.0% to 4.65mn tonnes in 2015. In terms of proportion of total waste, waste recycled had a modest increase to 61% from 60%. 

recycle0Photo: Company


What do we think of this?
Demand drivers we had previously identified are spot on. We had previously identified on Page 4 of our trading note (9 September 2014), three drivers of higher waste and recycling: (1) population growth, (2) economic growth and (3) environmental initiatives.

We said that there is a "clear trend of increasing waste generated in Singapore in tandem with population and economic growth", with economic growth "leading to higher incomes, higher propensity for consumer discretionary spending (upgrading consumer goods to replace existing goods), resulting in more waste being generated".

Moreover, environmental initiatives have led to greater environmental-awareness and consequently recycling of waste is gaining traction.

RichardLeow2.15Richard Leow, Phillip Securities analyst.Maintain "Buy" on the defensive business model; unchanged target price of S$0.58
800 Super is clearly well-positioned to capitalise on the above-mentioned trends, as it provides Waste Management & Recycling services. It is one of four licenced Public Waste Collectors (PWCs) appointed by NEA to provide public waste collection services.

800 Super already has a Material Recovery Facility (MRF) in place, and is in the process of developing a second MRF to cater specifically to horticultural waste.

Company Price (S$) Mkt Cap (S$m) Trailing P/E Trailing P/B Trailing EV/EBITDA ROA (%) ROE (%)
800 Super 0.485 77.8 4.3 1.3 4.9 15.1 34.8
Colex 0.350 39.8 8.1 1.5 4.3 13.2 20.0

Full report here.


Share Prices

Counter NameLastChange
AEM Holdings3.450-0.110
Avi-Tech Electronics0.280-
Best World2.4300.080
Broadway Ind0.1140.006
China Sunsine0.470-0.005
DISA0.002-0.001
Food Empire0.710-
Fortress Minerals0.360-0.010
Geo Energy Res0.330-0.010
Golden Energy0.790-0.005
GSS Energy0.048-
InnoTek0.505-0.010
ISDN Holdings0.570-0.020
ISOTeam0.099-
IX Biopharma0.122-
Jiutian Chemical0.081-0.002
KSH Holdings0.340-
Leader Env0.062-
Medtecs Intl0.158-0.005
Meta Health0.024-
Nordic Group0.4750.005
Oxley Holdings0.148-
REX International0.225-0.005
Riverstone0.675-0.010
Sinostar PEC0.185-
Southern Alliance Mining0.6000.005
Straco Corp.0.5100.010
Sunpower Group0.370-0.010
The Trendlines0.095-0.001
Totm Technologies0.113-
UG Healthcare0.182-0.005
Uni-Asia Group0.8900.015
Wilmar Intl4.100-0.030
Yangzijiang Shipbldg1.250-0.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 819 guests and no members online