Centurion - Phillip Securities 2024-12-02: New Dormitory As Growth Driver

• Maintain ACCUMULATE with the unchanged Centurion's target price of S$1.02.
• We believe that the boost in Centurion's revenue/PATMI due to Westlite Ubi PBD in FY25 will be offset by an expected reduction in bed capacity from the Dormitory Transition Scheme (DTS) and moderation of rental rates due to the Dependency Ratio Ceiling (DRC).

Boost in revenue/PATMI due to completion of Westlite Ubi

• - Read this at SGinvestors.io -
• Occupancy should gradually ramp up, and we expect 70-80% occupancy by April 2025.

Change in demand due to Dependency Ratio Ceiling (DRC)

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• The Dependency Ratio Ceiling (DRC) is expected to reduce Singapore's overall demand for worker accommodations since it was implemented in January 2024. We forecast a slowdown in demand growth from 6% in 2023 to 0.4% in 2024, which may likely cause rental rates in FY25e to moderate.

Reduction in capacity due to Dormitory Transition Scheme (DTS)

• Read more at SGinvestors.io.

Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

Read also Phillip's most recent report:
2025-03-07 Centurion - Positive In All Segments.

Price targets by 5 other brokers at Centurion Target Prices.

Listing of research reports at Centurion Analyst Reports.

Relevant links:
Centurion Share Price History,
Centurion Announcements,
Centurion Dividend Payout Dates & Corporate Actions,
Centurion News