Centurion - Lim & Tan Securities 2024-08-30: Beds In High Demand

• Centurion (SGX:OU8)’s 1HFY24 results came in above expectations with revenue and core profits coming in at 53%/62% of our full year forecast.
• Revenue rose 27% y-o-y to S$124.4mln from high financial occupancies and positive rental reversions across all segments.
• - Read this at SGinvestors.io -

Interim dividends increased to 1.5 cents

• See Centurion's dividends. Management has increased interim dividends to S$0.015 (1HFY23: S$0.01), signaling room for an increase in final dividends as Centurion remains a beneficiary of positive rental reversions across all key markets in the PBWA and PBSA segments.

Strong performance across all segments.

• - Read this at SGinvestors.io -
• While rental growth in Centurion’s key market Singapore may moderate going into 2024 and 2025, there is still further upside as Centurion’s higher dormitory bed rentals have not been fully factored into its topline. We understand that Centurion charges towards the lower end of market rates and it is not a price leader. Instead, the company adopts a long-term strategy to maintain goodwill and lasting relationships with customers.
• Government legislation enforcing quality workers accommodation (FEDA in Singapore, Act 446 in Malaysia) will place Centurion in good stead to capitalize on growing demand for purpose-built, professionally managed dormitory beds.

Robust bed pipeline.

• Read more at SGinvestors.io.

Chan En Jie Lim & Tan Securities Research | https://www.limtan.com.sg/ 2024-08-30 SGinvestors.io

---