Peter Lynch is well-known for investing in depressing and disagreeable businesses like funeral home operators and toxic waste clean-up firms. His investments in such industries include Service Corporation International and Waste Management. He loves such unloved businesses that are rarely covered by Wall Street.
Here in Singapore, there are also similar unloved businesses. We take a look at three local waste management companies. There are Colex Holdings Limited (SGX:567), 800 Super Holdings Limited (SGX: 5TG) and Sembcorp Industries Limited (SGX: U96).
Colex Holdings Limited operates Colex Environmental Pte Ltd; 800 Super Holdings Limited operates 800 Super Waste Management Pte Ltd and Sembcorp Industries Limited operates SembWaste Pte Ltd. A fourth company, Veolia ES Singapore Pte Ltd, is not listed.
Collectively, these four companies are called “Public Waste Collectors” or PWCs. These PWCs provide services to Singapore’s nine geographical sectors. Successful bidders are awarded seven-year contracts to service a sector.
SembWaste Pte Ltd is currently the largest solid waste management provider in Singapore serving five out of nine geographical sectors (56% market share).
It was recently awarded a renewed contract of S$299 million by the National Environment Agency (NEA) to provide refuse collection and recycling services to the City-Punggol sector of Singapore. Sembcorp’s contract for the sectors will take effect upon the expiry of its existing contracts for City and Hougang-Punggol on October 1, 2013, and March 1, 2014, respectively. The new contract will last until June 30, 2021.
Colex Environmental Pte Ltd was also awarded a renewed contract amounting S$139.8 million for the provision of the waste collection services in the Jurong sector on 26th November 2012. The contract started on 1st April 2013 and it will last till 31st March 2020.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.