Centurion Corporation Limited: Strong Asset Pipeline and Revenue Growth Drive Buy Rating

Phillip Securities analyst Yik Ban Chong maintained a Buy rating on Centurion Corporation Limited (OU8 – Research Report) today and set a price target of S$1.45.

Yik Ban Chong has given his Buy rating due to a combination of factors including Centurion Corporation Limited’s robust asset pipeline and strong revenue growth in its Singapore purpose-built worker accommodations. The company’s revenue growth of 13% year-over-year was largely driven by higher rental revisions, and the total assets and interest coverage ratio also saw significant increases. Additionally, the occupancy rates for the Australia purpose-built student accommodations have rebounded strongly, suggesting potential for revenue growth in the coming fiscal year.
Moreover, Centurion’s strategic developments, such as the redevelopment of key properties in Singapore and Australia, are expected to enhance its asset base significantly by FY25e and FY26e. The company’s potential REIT listing could also offer additional value to shareholders. These factors, combined with the company’s stable financial metrics and the anticipated continuation of growth in the Singapore worker accommodation sector, underpin the positive outlook and Buy rating assigned by Yik Ban Chong.

In another report released on May 15, CGS-CIMB also reiterated a Buy rating on the stock with a S$1.46 price target.