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Centurion Corp Ltd &ndash Technical Buy
Chasen Holdings Ltd &ndash Technical Buy
Trendspotter:
Centurion Corp Ltd &ndash Technical Buy
Chasen Holdings Ltd &ndash Technical Buy
ozone2002 ( Date: 23-Sep-2024 11:08) Posted:
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Centurion Corp subsidiary enters subscription agreement for 25% stake in Lachlan Avenue Development
Centurion Corporation' s indirect wholly-owned subsidiary, Centurion Overseas Investments (II) (COI(II)PL), has entered into a subscription and shareholders agreement with Lachlan Avenue Development (LAD), according to an Oct 15 release.
Under the agreement, the group is set to subscribe for 2.5 million shares, representing a 25% equity interest in LAD, for a purchase consideration of A$2.5 million ($2.19 million).
Following the completion of the share subscription, COI(II)PL and Centurion Properties Australia Investments (CPAI), a wholly-owned subsidiary of the group, will hold 25% and 75% of LAD respectively.
COI(II)PL and CPAI will also hold interest in a new student accommodation development project in Australia at 25% and 75%, respectively.
The development project is expected to be developed into a 732-bed purpose-built student accommodation. Construction work for the development project has since commenced and is set to be completed in December 2025.
Additionally, COI(II)PL and CPAI have also entered into a loan agreement to finance development costs and working capital requirements for the development project.
COI(II)PL is set to provide shareholder loans of up to A$9.54 million to LAD, based on its 25% shareholding interest in LAD.
On a pro forma basis, had the transactions been completed on Dec 31, 2023, the group&rsquo s net tangible assets (NTA) for FY2023 would have remained unchanged at $825.8 million, or an NTA per share of 98.21 cents.
Had the transactions been completed on Jan 1, 2023, the group&rsquo s earnings for FY2023 would also have remained unchanged at $153.1 million. Earnings per share stood at 18.21 cents.
RHB expects better rental rates for Centurion lifts target price
The research house believes Centurion is well-positioned to yield better rental rates given the shortage of dormitory supply in Singapore
RHB on Monday (Oct 14) raised its target price on Centurion by 39.5 per cent to S$1.06 from S$0.76.
This comes as the research house believes that Centurion is well-positioned to yield better rental rates amid a shortage of dormitory supply in Singapore.
The new target is based on an estimated price-to-earnings ratio of nine times for FY2025, up from 7.5 times.
It is also about half a standard deviation higher from the counter&rsquo s historical mean to account for longer term growth potential in new markets abroad, including Hong Kong and Xiamen.
&ldquo We turn more positive on Centurion on better bed rates for purpose-built workers accommodation (PBWA) in Singapore, with longer-term growth supported by overseas properties,&rdquo said RHB analyst Alfie Yeo in a report.
As a result, he raised Centurion&rsquo s FY2025 and FY2026 earnings estimates by 12 per cent and 17 per cent, respectively.
This comes as his PBWA bed rate assumptions for FY2025-2026 were lifted by 10 to 15 per cent to S$400 to S$450 per bed per month.
Additionally, Yeo also maintained his &ldquo buy&rdquo call on the counter.
He projects Centurion&rsquo s overseas projects to boost long-term growth. To recap, Centurion in September announced its first foray into the Build-To-Rent accommodation market in China.
The dormitory operator, together with Xiamen City Home Apartment Management, will retrofit, renovate and/or manage and operate residential accommodation in Xiamen, China for working professionals.
While Yeo noted that this overseas development has &ldquo negligible impact for now&rdquo and Centurion&rsquo s immediate-term growth is largely unchanged, he expects the projects to enhance growth in core markets such as Singapore.
Great company and good stock. Do not leave Wee Hur out of your portfolio.
SmallSmall ( Date: 14-Oct-2024 13:25) Posted:
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Breakout!!!!!!
Centurion Corporation
On Sep 24, Centurion Corporation : OU8 0% executive director and chief operating officer (COO) Kelvin Teo acquired S$500,000 fixed-rate notes due 2026 with a consideration of S$520,774. Teo now holds a principal amount of S$1.5 million in Centurion debentures.
Teo has been the COO of the group&rsquo s accommodation business since August 2011 and an executive director since May 2018. He is responsible for the day-to-day operations and expansion of the accommodation business, and assists the CEO in growth and strategic planning.
Phillip Research
Centurion Corporation Limited (ACCUMULATE TP S$0.90) - Shortage of beds persists
&bull Demand for workers&rsquo accommodation in Singapore is expected to surpass supply levels by c.12k in 2024 (3% of demand). We believe that shortage will persist till end 2025.
&bull Occupancy rates of students&rsquo accommodation in UK increased from 70% in 2020 to 93% in 2023. We expect occupancy rates to remain above 95% for FY24 and FY25 room rates to rise by 5% YoY for FY24.
&bull We expect adjusted net profits to grow by 24.9% YoY from 2023 to 2024. Declining interest rate environment is also positive for Centurion. A 50bps decline in interest rates can raise earnings by c.3.2%.
&bull Initiate coverage with ACCUMULATE and target price of S$0.90, based on DCF valuation (EV/EBITDA 8.8, WACC 7.0%).
Centurion Corporation Limited (ACCUMULATE TP S$0.90) - Shortage of beds persists
&bull Demand for workers&rsquo accommodation in Singapore is expected to surpass supply levels by c.12k in 2024 (3% of demand). We believe that shortage will persist till end 2025.
&bull Occupancy rates of students&rsquo accommodation in UK increased from 70% in 2020 to 93% in 2023. We expect occupancy rates to remain above 95% for FY24 and FY25 room rates to rise by 5% YoY for FY24.
&bull We expect adjusted net profits to grow by 24.9% YoY from 2023 to 2024. Declining interest rate environment is also positive for Centurion. A 50bps decline in interest rates can raise earnings by c.3.2%.
&bull Initiate coverage with ACCUMULATE and target price of S$0.90, based on DCF valuation (EV/EBITDA 8.8, WACC 7.0%).
not bad ,price currently up 4 cts from 17 sep after insider bought some shares at 74cts
https://links.sgx.com/1.0.0/corporate-announcements/Y68N3TSVS64ZNW1R/819018__eFORM1V2-David%20Loh-20240917.pdf
https://links.sgx.com/1.0.0/corporate-announcements/Y68N3TSVS64ZNW1R/819018__eFORM1V2-David%20Loh-20240917.pdf
2 weeks ago price up too fast? Now pull back. Oct come back see again.
Centurion unit to set up JV companies to retrofit, manage China residential housing
The move is in line with the group&rsquo s strategy to grow its accommodation business globally, via asset light means
ACCOMMODATION assets operator Centurion Corporation&rsquo s indirect wholly owned subsidiary, Centurion China Investments, will set up two joint venture companies with Xiamen City Home Apartment Management.
The companies will retrofit, renovate and/or manage and operate Build-To-Rent residential accommodation in Xiamen, China for working professionals.
This marks Centurion&rsquo s first foray into the Build-To-Rent accommodation market in China, said the group on Monday (Sep 9).
Centurion China Investments will hold a 51 per cent equity stake in the joint venture companies, while City Home will own 49 per cent.
As at Monday, both parties have identified two projects comprising about 1,500 apartments located in the Huli district in central Xiamen.
The first project is made up of five blocks of a newly constructed residential development, which will be transformed into 1,000 apartments catering to fresh graduates and working professionals in the city.
Meanwhile, the second project includes one block of a newly constructed residential development, and will be retrofitted into 500 apartments.
The joint venture companies will enter into master lease agreements of 20 years with the property owners for both projects, said Centurion.
The group added that City Home has specialised in operating housing leasing and commercial complex management services, among others, in Xiamen since 2018. It currently operates 14,000 Build-To-Rent apartments across three cities in the Fujian province.
&ldquo The company&rsquo s cooperation with City Home... is in the ordinary course of business of the group and in line with the group&rsquo s strategy to grow its accommodation business globally, via asset light means,&rdquo said Centurion.
In July, Centurion&rsquo s joint venture leased 50 residential flats in a property in Hong Kong from Abercorn Investments, and plans to renovate these units into accommodation for workers.
The flats, to offer a total of 550 beds, are expected to be ready for occupation in October.
Buy on dips.. good opportunity today.. huat
This counter looks good and can hold up quite well during past few days.. a huat counter. dyodd.
moron101 ( Date: 26-Aug-2024 14:31) Posted:
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Leadership takes Centurion from small-cap to mid-cap at the Singapore Corporate Awards
Its CEO &ndash winner of the Best CEO award for the small-cap category in 2016 and for mid-cap today &ndash says the Covid years were about seizing growth opportunities
WHEN Centurion&rsquo s chief executive, Kong Chee Min, was named Best CEO in the small-cap category of the 2016 Singapore Corporate Awards, he was delighted.
After all, it had been only five years since the company pivoted into the specialised-accommodation business, and it was humming along on a market capitalisation of S$244.2 million.
Four years later, Covid-19 dealt him what he now describes as the biggest challenge in the history of the company. Centurion &ndash one of the biggest workers&rsquo and students&rsquo accommodation operators in Singapore &ndash bore a double whammy of lower occupancy rates in its dorms and added costs incurred to manage the outbreak.
Kong said: &ldquo We invested extensively in fittings and equipment, hardware and software, technology as well as human resources, particularly in the Singapore workers&rsquo dorms, to implement (disease) containment measures.&rdquo
Safe-living measures included segregating residents based on their Covid-19 test results, as well as enforcing stricter sanitising regimes in the dorms.
With the extra expenses of about S$2 million spent on all that, Centurion swung into the red for the second half of FY2020, posting a net loss of S$3.8 million after factoring fair-value adjustments.
Excluding those adjustments, its net profit from its core business operations for the period would otherwise have been S$20.3 million.
On top of the containment measures, the company was also fielding more requests to review lease terms and for early terminations, rental deferrals, waivers, discounts and rebates. Occupancy rates in its properties fell lower as a result.
While the group&rsquo s full-year net profit, excluding fair-value adjustments, rose 9 per cent on the year to S$47.3 million, revenue fell marginally &ndash by 4 per cent year-on-year to S$128.4 million.
The group attributed the modest decline to Kong&rsquo s boldness in seizing opportunities during the pandemic, by working with government bodies the company bagged a management-service contract from JTC Corporation to manage three factory-converted dormitories.
It also won a second tender from JTC to lease and manage up to 6,400 beds in four quick-build-dorms (QBDs). Those dorms &ndash Westlite Jalan Tukang, Westlite Kranji Way, Westlite Tuas Avenue 2 and Westlite Tuas South Boulevard &ndash were part of the Singapore government&rsquo s push to lower worker density in existing dorms during the pandemic.
Kong said: &ldquo It was a deliberate attempt for us to enter this space&hellip to use our operational capability to refurbish and manage the dorms.&rdquo
The QBDs provided an additional income stream, mainly from facilities management and accommodation-related services.
This helped Centurion&rsquo s portfolio grow in Singapore to 34,368 beds, from 28,000 beds before the pandemic.
Apart from seizing opportunities in the workers&rsquo accommodation market, Centurion has been laying the foundation for growth by expanding overseas and diversifying its business.
Recognising synergies with its worker-accommodation business, it has since ventured into student accommodation in Australia, the UK, and the US, to tap into the high demand for rooms from both international and domestic students.
With an enlarged asset size, higher revenue and earnings, Centurion&rsquo s share price and market cap improved. As at last December, its market cap was at S$340.5 million.
It now has 32 assets with 66,495 beds in operation in Singapore, Malaysia, Australia, Hong Kong, China, the US and the UK.
Workers&rsquo accommodation accounts for 60 per cent of its revenue, and students&rsquo accommodation, 24 per cent, Kong noted. (The company&rsquo s non-core businesses accounted for the remaining revenue.)
In FY2023, Centurion&rsquo s top line rose 15 per cent to S$207.2 million. Workers&rsquo accommodation contributed S$156.7 million, and students&rsquo accommodation, S$49.9 million.
Excluding fair-value adjustments and one-off items, net profit from the group&rsquo s core business operations attributable to equity holders rose 21 per cent to S$69.2 million, up from S$57.1 million previously.
At this year&rsquo s Singapore Corporate Awards, Kong was again named Best CEO &ndash but among mid-cap companies this time &ndash making him the first to win the title twice.
Asked how Centurion distinguishes itself from its peers, he said its ethos is to manage residents with care: &ldquo Beyond providing a physical space (for these workers) to call home, we strive to create an environment that nurtures their emotional well-being.&rdquo
For their safety, Centurion has furnished them with white goods such as refrigerators and washing machines, he said, so that they do not buy second-hand items that may be faulty.
Residential-life programmes such as movie screenings and overseas excursions are organised for them. Last year, the number of such activities rose 102 per cent to 778.
For instance, during the 2023 Chinese New Year, some residents visited the Batu Caves in Kuala Lumpur, Malaysia this trip had been a yearly affair for nine years, until the pandemic struck, said Centurion.
In the next phase of growth, Kong said he aims to continue expanding the company by &ldquo doing more with less&rdquo . To this end, he said, Centurion will continue taking an asset-light approach, which he believes is more sustainable than leveraging the balance sheet.
This strategy, which entails signing master leases with land or property owners, could reduce Centurion&rsquo s capital outflow, and plump up its portfolio of revenue-generating assets under management and its return on equity for its shareholders, he said.
Things have been going well for the company on this asset-light track. The dormitory operator&rsquo s H1 FY2024 net profit rose 209 per cent to S$118.2 million, from S$38.3 million previously.
To achieve further growth, the CEO believes that &ldquo everybody plays a part&rdquo . He said: &ldquo The board&rsquo s direction and their support, as well as the staff who help execute plans, are crucial.
&ldquo A successful company is not just about revenue and earnings. It is also about sustainability, governance.&rdquo
Enough huat? Me not. Want to huat further.. still early to stop..
001Zogel ( Date: 24-Aug-2024 06:37) Posted:
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Enough.
moron101 ( Date: 23-Aug-2024 13:54) Posted:
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Strong accumulation.. hold tight.. huat ah..
moron101 ( Date: 22-Aug-2024 10:17) Posted:
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Slowly moved up.. keep for dividends. huat ah .
Anyone seen UOBKH target price? Upgraded to $0.85!
Buy on dips.. supported well. Huat.
moron101 ( Date: 19-Aug-2024 19:51) Posted:
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Slow & steady.. can accumulate more.. huat ah.