(20 July 2017) close: S$1.300
Mean Target price: S$1.570
1.) Sector: Environment/Sanitation
2.) Core business structure: Waste disposal and cleaning services
3.) Segment that generates the highest revenue: Waste Management
4.) Countries that the business operates: Singapore, Batam
5.) Challenges: Increase of costs due to the rise in foreign worker levies, and maintenance of added motor vehicles due to the rise in commercial activities (Financial Performance)
6.) Strengths: Expenditures were resourcefully managed through various production initiatives- namely, refining their resources management, and service team education with relevant equipment. (Chairman’s Statement)
7.) Significant events: Expansion initiatives are on schedule for the Tuas South leasehold land waste to energy (“WTE”) plant. This will create new proceeds and expense savings through green electricity delivered to on-site processes (Chairman’s Statement)
9.) Alp Conclusion:
The Group had a great year in 2016. Revenue went up 11.5% to S$156.4 million, due to contract renewal and new contracts. This statistic showcases and summarises the company’s recent stellar performance, and shows good management.
Given that they are part of the only 4 authorised public garbage collectors selected by the National Environment Agency (“NEA”), and the group’s awareness on the recent trend towards environmental preservation, it appears that the group will be in the money for a while to come.
DISCLAMER: Readers should not rely solely on information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.