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03-10-2014, 10:39 AM
(This post was last modified: 03-10-2014, 10:41 AM by idyllic_yawster.)
In Singapore, our waste industry is segmented into these four contractors.
[Image: nfmtep.png]
screen capture: http://app2.nea.gov.sg/energy-waste/wast...t/overview
I am fairly surprised that no one created a thread on Colex. Some have termed Colex and 800 Super as smelly stocks, I highly doubt so.
This stock has been produced:
5 year of unbroken revenue growth
5 year of unbroken net profit margin increment (isn't tat amazing?)
improving Return on Equity (YoY)
undemanding P/E of 8+/-
SGX StockFacts does provide a fuss-free snapshot of the 5 years financial summary
Outlook
PM Lee mentioned Govt is looking to develop Jurong area which is Colex's terriority. There is a potential upside since the area of work for Colex has expanded.
Looking at 800 Super, the company manages Ang Mo Kio-Toa Payoh yet their revenues are double of Colex's. Yet Ang Mo Kio-Toa Payoh is a small land compared to Jurong. There is just so much more for Colex to capture in Jurong after development.
Revenues
Colex's revenues of 50mil+ consisted of 30mil from non-govt and 20mil from NEA.
Contract from NEA, runs for 7 yrs:
1 April 2013 to 31 March 2020 ($140mil or $20mil per year)
As an investor, I can be assured $20mil will be constant and won't be affected by financial turmoli. As for the 30mil, when there's crisis, I would still need to throw my waste right? I won't worry about declining revenues.
Barriers to Entry
Just like SingTel, Starhub, etc, you'll need a license to run a waste management company. I highly doubt Govt would allow another entrant into this industry.
On the back of 800 Super's share price increment, Colex appears to have caught up too. On a side note, anyone knows Ang Hao Yao? He was the person who invested in VICOM in the earlier days, he owns 1% of Colex too. Both VICOM and Colex does share similar characteristics, almost-recession proof biz models.
(vested at $0.225, might be bias)
[Image: nfmtep.png]
screen capture: http://app2.nea.gov.sg/energy-waste/wast...t/overview
I am fairly surprised that no one created a thread on Colex. Some have termed Colex and 800 Super as smelly stocks, I highly doubt so.
This stock has been produced:
5 year of unbroken revenue growth
5 year of unbroken net profit margin increment (isn't tat amazing?)
improving Return on Equity (YoY)
undemanding P/E of 8+/-
SGX StockFacts does provide a fuss-free snapshot of the 5 years financial summary
Outlook
PM Lee mentioned Govt is looking to develop Jurong area which is Colex's terriority. There is a potential upside since the area of work for Colex has expanded.
Looking at 800 Super, the company manages Ang Mo Kio-Toa Payoh yet their revenues are double of Colex's. Yet Ang Mo Kio-Toa Payoh is a small land compared to Jurong. There is just so much more for Colex to capture in Jurong after development.
Revenues
Colex's revenues of 50mil+ consisted of 30mil from non-govt and 20mil from NEA.
Contract from NEA, runs for 7 yrs:
1 April 2013 to 31 March 2020 ($140mil or $20mil per year)
As an investor, I can be assured $20mil will be constant and won't be affected by financial turmoli. As for the 30mil, when there's crisis, I would still need to throw my waste right? I won't worry about declining revenues.
Barriers to Entry
Just like SingTel, Starhub, etc, you'll need a license to run a waste management company. I highly doubt Govt would allow another entrant into this industry.
On the back of 800 Super's share price increment, Colex appears to have caught up too. On a side note, anyone knows Ang Hao Yao? He was the person who invested in VICOM in the earlier days, he owns 1% of Colex too. Both VICOM and Colex does share similar characteristics, almost-recession proof biz models.
(vested at $0.225, might be bias)
