Centurion - UOB Kay Hian 2023-11-17: Outlook Undimmed – Strong Performance In 3Q23 To Extend Into 2024

Centurion - Outlook Undimmed – Strong Performance In 3Q23 To Extend Into 2024

Centurion Corp (SGX:OU8) | SGinvestors.ioCenturion Corp (SGX:OU8)
  • Centurion’s 3Q23 performance was better than expected, driven by strong rental reversions across workers’ and students’ accommodations.
  • The macro backdrop of migrant workers returning to Singapore and Malaysia as well as international students heading back to universities in the UK and Australia will continue to play out as supply of assets lags demand. New government regulations for PBWAs may also help rental reversions in the medium term.
  • - Read this at SGinvestors.io -

Better-than-expected performance in 3Q23.

  • Centurion Corp (SGX:OU8) reported that its 3Q23 revenue rose 15% y-o-y. Importantly, its 9M23 revenue grew 11% y-o-y, coming in slightly better than expected as it made up 78% of our full-year revenue estimates.
  • We highlight that Centurion’s revenue accelerated in 3Q23 given that 1H23 saw a lower 8% y-o-y increase. We understand from the company that it has managed to maintain its profit margins at both of its key business segments in 3Q23. Recall that its 1H23 gross margin was 72% (+4.6ppt y-o-y) while its PATMI margin was 39% (+2.8ppt y-o-y).

Strong rental reversions at CENT’s PBWA assets.

  • - Read this at SGinvestors.io -
  • By our estimates, Centurion’s PBWA assets should continue to see solid revenue growth as its annual leases roll off and new leases are signed at higher rates.

Revenue for its PBSA business should accelerate into 4Q23.

  • Read more at SGinvestors.io.

Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.

Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-11-17

Previous report by UOB:
2023-08-15 Centurion - Strong Tailwinds Seen In 1H23 Should Persist Well Into 2025.

Price targets by 4 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


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