- 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:
2023-09-20 Centurion - Bed No Enough.
Previous report by LIM:
2023-08-21 Centurion - Healthy Bed Pipeline.
Price targets by 3 other brokers at Centurion Corp Target Prices.
Listing of research reports at Centurion Corp Analyst Reports.
Relevant links:
Centurion Corp Share Price History,
Centurion Corp Announcements,
Centurion Corp Dividends & Corporate Actions,
Centurion Corp News Articles
