What Does Bonvests Holdings Ltd Do and How Does It Make Money?
It is important to know what a particular company does and how it makes money before investing in it. Investing in a business without such knowledge is akin to travelling to an unknown territory without a map.
On that note, let’s check out what business Bonvests Holdings Ltd (SGX: B28) is involved in and how it generates its revenue.
Bonvests, as a quick background, owns and manages various prime commercial and hotel properties in Singapore, Australia and a few other countries. It also has a large stake in a waste management and contract cleaning company listed here.
The annual report of the firm can clue us in on the business segments the company has, and the revenue raked in by each segment.
Let’s take a look at the table below for the revenue contribution of each segment for the financial year ended 31 December 2016 (FY2016):
Source: Bonvests Holdings Ltd Annual Report 2016
Revenue from the Rental segment comes from owning and leasing of properties. Its real estate portfolio comprises 160,000 sq ft of business-related office and retail space in Singapore, Australia and Tunisia.
In Singapore, it owns the flagship property, Liat Towers, a 21-storey office tower with a retail podium. In Australia, it has two office buildings within Perth’s Central Business District.
Over at Tunisia, it owns a retail mall, Gammarth Centre, in the heart of Carthage city. The mall has more than 4,500 square metres of retail space and has close to 100% occupancy.
Moving on, the Hotel segment generates revenue from development and operation of hotels and a golf course. It contributed to the bulk of total revenue in FY2016.
Under this segment, the firm owns The Residence by Cenizaro – a bevy of four luxurious hospitality properties located in Tunis, Mauritius, Zanzibar and Maldives. Bonvests also owns Sheraton Towers Singapore Hotel and Four Points by Sheraton Perth under the Hotel portfolio.
The Industrial segment covers collection and disposal of waste and contract cleaning. Revenue comes from its 78.9% stake in Colex Holdings Limited (SGX: 567), a waste management and contract cleaning company.
Colex Environmental Pte Ltd, which has over 40 years of experience in the local waste management scene, is a licenced Public Waste Collector appointed by the Singapore government and manages the Jurong sector. Meanwhile, Integrated Property Management Pte Ltd, which is a part of Colex Holdings’ cleaning division, provides customised cleaning solutions for commercial and residential buildings.
Under the Investment segment, Bonvests derives revenue from securities trading and investment holding.
Lastly, operations under the Others segment include “mainly the provision of management services and the operation of restaurant. Unallocated net expenses incurred by the Company are included here”.
Behind every ticker symbol lies a living, breathing business. Buying a stock without fundamental knowledge of what the company does and how it makes money can be dangerous.
Now that we know the basics of Bonvest Holdings’ revenue streams, we can then delve into other aspects of the firm such as its profitability, strength of its balance sheet, its cash-generating abilities, and more.