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The Different Ways 800 Super Holdings Ltd Makes Its Money

800 Super Holdings Ltd (SGX: 5TG) is an established environmental services provider for both the public and private sectors in Singapore. The company’s services include waste management, cleaning and conservancy, and horticultural services. In other words, 800 Super helps keep Singapore clean and green.

The company had recently captured my attention due to its long-term market-beating performance. Over the last five years, 800 Super’s stock price has gained 590%; in contrast, Singapore’s market barometer, the Straits Times Index (SGX: ^STI), is up by just 6%.

800 Super’s strong return prompted me to look deeper to learn just how it makes its money. Below is a quick summary of the outcome of my study.

Waste management services

Under this segment, 800 Super provides both municipal waste collection and industrial and commercial waste collection services.

800 Super 1

For the former, 800 Super is one of the four licensed public waste collectors that are appointed by the National Environment Agency (NEA). The company currently provides waste collection services for the residential and trade premises in the Ang Mo Kio−Toa Payoh sector in Singapore. The premises cover public housing estates, shop houses, trade areas, as well as private apartments and condominiums.

As for the industrial and commercial waste collection side, 800 Super’s service spans various areas, including shopping complexes, hotels, factories, shipyards, and more. Within this business, 800 Super would customise suitable waste pickup and recycling programs that are tailored to its customers’ requirements.

Cleaning and conservancy services

This is where 800 Super provides public cleansing and cleaning services.

800 Super 2

Under public cleansing, 800 Super was awarded contracts by the NEA in 2014 to provide cleansing services to the public areas in the North West and South West districts of Singapore. Some of the services involve the cleansing of public roads and pavements, cleaning of bus stops, and clearing of public litter bins.

For the cleaning services business, 800 Super provides a wide range of contract cleaning and conservancy services to residential, commercial, industrial as well as institutional customers.

Horticultural services

800 Super 3

This part of the business is where 800 Super provides services such as grass-cutting, the planning and maintenance of landscapes, and the planting and pruning of trees and plants.

A Foolish conclusion

In 800 Super’s fiscal year ended 30 June 2016 (FY2016), the company brought in S$156.4 million in revenue, up 11.5% from FY2015. Unfortunately, 800 Super does not provide an exact breakdown of how much revenue each of its businesses contribute.

Nonetheless, knowing what exactly 800 Super does can still help investors form a better understanding of its business.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.