Centurion - Lim & Tan Securities 2025-03-12: Strong Pipeline Of Assets

• Strong growth in construction demand over the next few years in key market Singapore (69% of revenues) will be favourable for dormitory operators like Centurion. There are value-unlocking opportunities through the capital recycling of mature assets into a potential REIT as Centurion shifts towards an asset-light strategy.
• - Read this at SGinvestors.io -
• Valuations remain attractive at 7.9x forward P/E and 0.73x P/B. We raise our target price multiple from 7.1x FY25F P/E to 9.5x in view of expected earnings growth and potential catalysts from asset monetization.

FY24 results slightly above expectations

• - Read this at SGinvestors.io -
• Gross profit rose 30% to S$195.6mln, backed by higher rental rates and operational efficiencies.
• Excluding net fair value gains of S$219.1mln, core profit for FY24 came in at S$99.3mln, an increase of 43% y-o-y.

Value-unlocking on the cards?

• Read more at SGinvestors.io.

Above is an excerpt from a report by Lim & Tan Securities Research.
Clients of Lim & Tan Securities may be the first to access the full PDF report @ https://www.limtan.com.sg/.

Previous report by LIM:
2024-08-30 Centurion - Beds In High Demand.

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 Dividend Payout Dates & Corporate Actions,
Centurion News