Centurion Corp - Lim & Tan Securities 2023-07-17: Beneficiary Of Sky-High Accommodation Rates

Centurion Corp - Beneficiary Of Sky-High Accommodation Rates

Centurion Corp (SGX:OU8) | SGinvestors.ioCenturion Corp (SGX:OU8)
  • We initiate a BUY rating on Centurion Corp (SGX:OU8) with a target price of S$0.55, pegged to 7.5x core FY23F P/E (5-year average), representing a potential upside of 37.5%. Centurion remains the largest purpose-built workers accommodation provider in Singapore and Malaysia backed by favourable demand and positive rental reversions.
  • - Read this at SGinvestors.io -

Huge demand for dormitory beds in Singapore.

  • Growing demand and an undersupply of dormitory beds have led to positive rental reversions and sky-high occupancy rates of close to 100%. Centurion’s workers accommodation business in Singapore accounts for two-thirds of revenue and we estimate monthly rates have increased from S$280 pre-COVID to >S$400 currently. Employers of worker residents are price-takers fighting for the limited number of beds in this demand-supply mismatch.
  • - Read this at SGinvestors.io -

Resilient business model amid uncertain economic outlook.

  • Read more at SGinvestors.io.

Chan En Jie Lim & Tan Securities Research | https://www.limtan.com.sg/ 2023-07-17

Read also LIM's most recent report:
2024-03-04 Centurion - Dormitory Beds In High Demand; ACCUMULATE With Higher Target Price.

Previous report by LIM:
2023-09-20 Centurion - Bed No Enough.

Price targets by 3 other brokers at Centurion Target Prices.

Listing of research reports at Centurion Analyst Reports.

Relevant links:
Centurion Share Price History,
Centurion Announcements,
Centurion Dividends & Corporate Actions,
Centurion News Articles


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