800 Super Holdings

800 Super Holdings: PhillipCapital has a Trading Buy rating on the counter with a TP of $0.67. House cited double digit CAGR in top line (+13.4%) and PATMI (+14.6%) over the last four years, outpacing 5% CAGR for total waste generated. Three new recent contracts that will commence during CY2014 did not fully contribute in FYJun14, but will contribute fully from 2HFY15F onwards. The partial contribution alone for FY14 already resulted in strong y/y growth for the company. PhillipCapital opine that despite the recent run up in share price for the counter, the market still does not fully appreciate what the full contribution by the three new contracts will have on FY15F results, and the new elevated level of earnings in the FYs to follow. The counter is currently trading cheaply at estimated implied forward P/E of only 4.4x, in contrast to core business contracts at 6 or 7 year tenures.