- Centurion remains a top sector pick, driven by material exposure to Singapore’s booming construction industry via its Purpose-Built Workers’ Accommodation (PBWA) assets. With tailwinds from government megaprojects and robust rental growth, sustained earnings should be expected in our view.
- - Read this at SGinvestors.io -
First tailwind: Strong construction spending in Singapore.
- Construction activity from both the public and private sectors will remain elevated in the next 2-3 years with key multi-year projects having started recently. These include the
- Marina Bay Sands expansion (worth S$10.7b),
- Resorts World Sentosa expansion (worth S$6.8b),
- Changi Airport Terminal 5 (worth S$11.0b), as well as
- - Read this at SGinvestors.io -
Second tailwind: MAS’ S$5b equity injection.
- In our view, Centurion should be one of the main beneficiaries of the EQDP as the company has built a strong reputation as a highly competent accommodation manager, has strong historical and forecast earnings growth, safe and reliable operations as well as exposure to a sector that is seen as being relatively insulated from geopolitical risk that has risen markedly in the past few days.
- Read also: Singapore Market Strategy: Stocks To Buy In The Upcoming S$5b Blitz.
Potential growth in Malaysia.
- Read more at SGinvestors.io.
