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Colex
03-10-2014, 10:39 AM. (This post was last modified: 03-10-2014, 10:41 AM by idyllic_yawster.)
Post: #1
Colex
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)

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03-10-2014, 10:43 AM. (This post was last modified: 03-10-2014, 10:43 AM by brattzz.)
Post: #2
RE: Colex
it's a bread and butter biz, and looks like a growth story for the next 3-5 yrs.. Smile
what's the profit margin like?
=========== Signature ===========
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 

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03-10-2014, 10:59 AM. (This post was last modified: 03-10-2014, 11:00 AM by idyllic_yawster.)
Post: #3
RE: Colex
Hi Brat. To me, I like simple businesses. Can businesses tahan their place being smelly? Can HDB residents tahan their void deck being filled with thrash? Can shoppers tahan dirty shopping malls?

Colex, through Integrated Property Managmeent, offers cleaning services to property developers, owners, and managers. It goes into industrial and commerical cleaning too.

From Annual Report:

[Image: 28bbj86.png]

I am sure you can make sense of the numbers and see them profit margins are increasing.

http://www.colex.com.sg/profile.html

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03-10-2014, 11:26 AM.
Post: #4
RE: Colex
More fundamentals of the company here, base on FY2013

GPM was 53%, but NPM was only 5%. One good news is the asset turnover of 1.5, thus the ROA/ROE was 8%/13%

Gearing is very low. The TTM PE is approx 11. One point to note is the company is a very small cap, with MC of >40 mil

Simple business is good, and simple and boring is even better. The 1 year/2 years/3 years price performance of the company was 76%/150%/233%. We might already miss the boat ...Tongue

One last point, the dividend yield is 1.7% @ current price of 30 cents, and consistently paying dividend since listed in 1999

(not vested)
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“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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10-11-2014, 11:09 AM.
Post: #5
RE: Colex
Today Colex gone crazy on a 5 lot transaction.

Wonder what's the person intention?

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10-11-2014, 12:38 PM. (This post was last modified: 10-11-2014, 12:49 PM by Bubbachuck.)
Post: #6
Re: RE: Colex
(10-11-2014, 11:09 AM)kelvesy Wrote: Today Colex gone crazy on a 5 lot transaction.

Wonder what's the person intention?
Because of this. I missed the boat... Again.

http://infopub.sgx.com/Apps?A=COW_CorpAn...GBDiRmwrqA
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Time to roll!!!

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10-11-2014, 03:34 PM.
Post: #7
RE: Colex
no worries Bubbachuck, Big Grin
While there's plenty of multi-baggers to miss! Big Grin
These's also plenty of multi-baggers to discover and buy! Tongue

There's no rush to any value biz... it's a matter of due diligent and lots of patient... Smile
=========== Signature ===========
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 

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10-11-2014, 04:49 PM.
Post: #8
Re: RE: Colex
(10-11-2014, 03:34 PM)brattzz Wrote: no worries Bubbachuck, Big Grin
While there's plenty of multi-baggers to miss! Big Grin
These's also plenty of multi-baggers to discover and buy! Tongue

There's no rush to any value biz... it's a matter of due diligent and lots of patient... Smile
Thanks brattzz. Actually I like this company than 800 super because of its low gearing compared to 800. CAPEX ratio to equity is also better.
=========== Signature ===========
Time to roll!!!

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10-11-2014, 08:36 PM.
Post: #9
RE: Colex
800 super is going to report better profits because of area under their charge. Debt isn't always bad if it helps you capitalize on biz opportunities and your free cash flow is able to cover your fixed interest rate.

Colex only takes care of Jurong, but jurong is big. So what's what?

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10-11-2014, 08:50 PM.
Post: #10
RE: Colex
(10-11-2014, 12:38 PM)Bubbachuck Wrote:
(10-11-2014, 11:09 AM)kelvesy Wrote: Today Colex gone crazy on a 5 lot transaction.

Wonder what's the person intention?
Because of this. I missed the boat... Again.

http://infopub.sgx.com/Apps?A=COW_CorpAn...GBDiRmwrqA
couldnt seem to open it..what kinda announcement is that

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