ASX:CWY
Cleanaway Waste Management Ltd
Investment Summary
The fund managers believe that Cleanaway Waste Management Ltd is well-positioned to capitalize on the evolving waste management landscape in Australia. They emphasize Cleanaway's progress towards its Blueprint 2030 strategy, which aims to enhance shareholder value while addressing sustainability challenges. In their opinion, the company benefits from favorable tailwinds driven by supportive state and federal policies, including landfill levies and waste export bans, which are expected to strengthen the economic viability of waste processing investments. The fund managers highlight key initiatives such as accretive investments in infrastructure, operational efficiencies, and a focus on market share growth through sustainable waste solutions. They recognize potential risks in execution but remain optimistic about Blueprint 2030’s capacity to yield substantial long-term value for shareholders. Overall, the fund managers view Cleanaway as Australia's leading waste operator, uniquely positioned to thrive in a regulatory environment increasingly favoring circular waste solutions.
Commentary From The Managers
Cooper Investors
30 June 2024
$2.75
- Cooper Investors is pleased with the progress of Cleanaway (CWY) towards its Blueprint 2030 strategy.
- Cleanaway is Australia’s leading waste management and resource recovery provider, operating vital infrastructure assets.
- Favourable tailwinds for the waste industry remain intact, supported by state and federal waste policies.
- Landfill levies being introduced nationally will enhance the economics for investment into waste processing.
- Relevant national waste policies include waste export bans, targeting an 80% recovery rate, halving organic waste to landfill, and promoting recycled materials.
- Cleanaway is well-positioned to benefit from the emerging regulatory environment for circular waste solutions.
- Blueprint 2030 aims for superior shareholder value by integrating infrastructure assets for sustainable solutions.
- Key initiatives include:
- Accretive investment across assets, including organics processing and energy-from-waste.
- Focus on operational improvements and superior efficiency.
- Market share growth through sustainable waste disposal solutions. - FY23 results provided clarity on Blueprint 2030’s financial potential, emphasizing return on capital and capital investments in waste-to-energy.
- While there are execution risks, there is potential for Blueprint 2030 to deliver value to shareholders in the medium to long-term.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.