Analyst Yik Ban Chong of Phillip Securities maintained a Buy rating on Centurion Corporation Limited, retaining the price target of S$1.81.
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Yik Ban Chong has given his Buy rating due to a combination of factors, notably stronger-than-expected top-line performance from Centurion’s core operations and new fee-based income streams. The consolidation of the remaining stake in the Westlite Mandai asset, positive rental adjustments in Singapore, and contributions from the newer Westlite Ubi facility have meaningfully lifted revenue, even though higher administrative expenses temporarily weighed on adjusted earnings.
At the same time, the spin-off of CAREIT has unlocked substantial capital, sharply reducing net debt and leverage, and positioning the balance sheet for future growth. Centurion also stands to benefit from scalable property management fees from CAREIT’s expanding portfolio, with management expecting a robust increase in this recurring income stream, while shareholders are further compensated through an attractive dividend-in-specie distribution, collectively underpinning the maintained Buy rating and target price.
In another report released on March 3, UOB Kay Hian also maintained a Buy rating on the stock with a S$1.90 price target.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OU8 in relation to earlier this year.