Centurion    Last:1.45    +0.02

Centurion Corp

 

 

Over-rated for this counter. Lolx


Go see another counter to watch is Hong Fok (H30). A potential delisting company and an undervalue counter. Now trading at a heavily discounted pricing. 

There is a proposed delisting on the HKEX and more or less done deal. Proposed delisting likely on the cards on the SGX

Price now on an uptrend for Hong Fok (H30)
 

 

trading almost half of book value. It' s a steal at this price
gd luck dyodd

Foreign labour bottoming
Investment Thesis:
Global reopening to buoy Singapore, Australia, and UK accommodation revenue. Singapore&rsquo s purpose-built worker accommodation (PBWA) occupancies are expected to improve progressively over FY22 and FY23, with the foreign labour crunch targeted to be resolved in the next few months, according to a senior government official. In a similar vein, a new academic year and the relaxation of border restrictions in Australia and the UK should mark a point of recovery for student arrivals and, in turn, purpose- built student accommodation (PBSA) occupancies.
Returning dividend play. We are forecasting for Centurion to return as a dividend play, underpinned by improved occupancies across its PBSA and PBWA segments. FY22F and FY23F DPS are projected to come in at 1.5 Scts and 2.0 Scts, respectively, representing a yield of 4.2% and 5.6%.
Regulatory overhang remains, but impact could be dampened. New regulations for workers&rsquo dormitories are expected to reduce the capacity at said dormitories, but early information points to rental rates remaining steady. Still, additional capex may be incurred in adapting the dormitories to these new standards, although we believe this will likely be over time instead of as an upfront lump sum.
Valuation:
Maintain HOLD with DCF-based TP of S$0.42 based on a WACC of 6.2% and terminal growth rate of 2.0%. Our TP implies a 7.3x FY22F PE, which is close to Centurion&rsquo s four- year mean forward PE of 7.8x. We are suspending coverage on the stock as we reallocate research resources.
Where we differ:
We are forecasting an accelerated debt repayment schedule on concerns of higher interest rates.
Key Risks to Our View:
Unfavourable changes in regulatory environment, foreign exchange volatility, sustained deterioration in economic outlook for Singapore and Malaysia affecting foreign worker demand, and implementation of border restrictions
      0.4
0.4
160
120 100 80
  0.3 60 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Centurion Corporation (LHS) Relative STI (RHS)
  Forecasts and Valuation
FY Dec (S$m)
Revenue
EBITDA
Pre-tax Profit
Net Profit
Net Pft (Pre Ex.)
Net Pft Gth (Pre-ex) (%) EPS (S cts)
EPS Pre Ex. (S cts) EPS Gth Pre Ex (%) Diluted EPS (S cts) Net DPS (S cts)
BV Per Share (S cts) PE (X)
PE Pre Ex. (X) P/Cash Flow (X) EV/EBITDA (X)
Net Div Yield (%) P/Book Value (X) Net Debt/Equity (X) ROAE (%)
Earnings Rev (%): Consensus EPS (S cts): Other Broker Recs:
2020A 2021A
128 143 81.0 87.2 25.7 67.9 17.2 52.7 45.8 45.6 19.7 (0.3) 2.04 6.27 5.44 5.43
20 0 5.65 5.69 0.0 0.50 72.0 78.5 17.6 5.7 6.6 6.6 5.0 4.1 12.2 11.2 0.0 1.4 0.5 0.5 1.1 1.0 2.9 8.3
B: 2
2022F 2023F
154 169 94.1 104 65.1 70.2 48.9 52.7 48.9 52.7
7.1 7.8 5.82 6.27 5.82 6.27
7 8 5.82 6.27 1.50 2.00 82.8 87.0
6.2 5.7 6.2 5.7 4.7 5.3
10.1 9.0 4.2 5.6 0.4 0.4 0.9 0.8 7.2 7.4
(8) (8) 6.10 7.00 S:0 H:0
At A Glance
Issued Capital (m shrs) Mkt. Cap (S$m/US$m) Major Shareholders (%)
Centurion Properties Pte Ltd Teo Peng Kwang
Han Seng Juan
Free Float (%)
3m Avg. Daily Val (US$m)
GIC Industry : Real Estate / Real Estate Management &

 

 

Last:0.335  --
turnaround recovery insight with SG easing
Trading at slightly half of NAV at 74c
gd luck dyodd

 

 

This announcement is made by Centurion Corporation Limited (the &ldquo Company&rdquo and together with its subsidiaries, the &ldquo Group&rdquo ) pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the &ldquo Listing Rules&rdquo ) and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong), as well as in accordance with Rule 703 of the Listing Manual of the Singapore Exchange Securities Trading Limited (the &ldquo SGX Listing Manual&rdquo ). The board of directors of the Company (the &ldquo Board&rdquo ) would like to inform the shareholders and potential investors of the Company that, based on preliminary assessment of the Group&rsquo s unaudited consolidated management accounts for the full year ended 31 December 2021 (&ldquo FY2021&rdquo ) and the information currently available, the Group is expected to record a substantial increase in the net profit attributable to equity holders of the Company for FY2021 by not less than 200% as compared to a net profit attributable to equity holders of the Company of approximately S$17.2 million for the corresponding period in 2020.

Joelton      ( Date: 29-Oct-2021 12:51) Posted: Situation at Westlite Jalan Tukang was unique: Centurion   CENTURION Corporation refers to an article in the Hock Lock Siew column of The Business Times, published on Oct 26, 2021.   We wish to provide clarity in reference to claims and inferences raised in the article, suggesting Centurion' s Sustainability Report is an example of one in which reality does not reflect reporting.   The insinuations in relation to Centurion made, in our view, are unfounded, and do not accurately reflect events as they have been reported in The Business Times and other media.   The situation at Westlite Jalan Tukang was a unique, unexpected incident that arose from an increase in numbers of workers who tested positive in mandatory mass-testing conducted at an employer' s workplace, stretching the capacity of the Dormitory Isolation Facilities, and a delay in conveying these Covid-positive workers to external-care facilities.   Dormitory operators cannot provide the medical and logistical resources required to send affected residents to external-care facilities. Westlite has been working closely with the Assurance, Care and Engagement Group (ACE) under the Ministry of Manpower, which had deployed more resources and cleared the backlog of residents who tested ART positive. ACE has also augmented existing clinic services and telemedicine capabilities, in addition to deploying mobile medical services to the dormitory.   On the complaints over the quality of food, employers can choose to cater meals for their workers on their own part. Our role then is to assist in the collection of meals.   In this case, the employer managed the catering for their workers, and has acknowledged and addressed their workers' concerns on this front. The delivery of food is now timely, and quality has improved.   Residents also have access to kitchens and may choose to cook their own meals. The dormitory provides a mini mart operated by a third party commercial operator who specialises in stocking products from the source countries of our worker residents. Westlite provides regular feedback to the mini-mart operator on pricing and items to be stocked.   The mini mart, however, cannot stock all items desired by migrant workers who come from across regions in multiple countries.   When special measures were activated to convey Covid cases to care facilities, we temporarily halted large bulk deliveries such as pallet-loads, which impeded Safe Movement Measures, but still accepted regular-sized parcels.   As the movements of Covid-positive cases normalised, we resumed accepting bulk deliveries.   An underlying cause of the anxieties experienced by this sub-community is the differing expectations of Covid-19 management, between zero-tolerance Covid strategies and Singapore' s policies progressing towards endemicity. Centurion understands the employer is actively engaging its workforce to explain to them Singapore' s vaccination registration process and public-health protocols.   Centurion, on its part, recognises that specialised staff and customised communication can help bridge such differences, and the company has taken steps to improve engagement with its resident sub-communities.   Finally, the board and management of Centurion reassure their stakeholders that environmental, social and governance (ESG) actions are of utmost importance.   The group considers all stakeholders' interests in the conduct of its business, and stays committed to providing a good-quality living environment, with care and concern for the well-being of all its residents.   Covid-19 health testing and movement protocols have been followed at Westlite Jalan Tukang, and we continue to support the authorities, employers and residents in managing Covid-19 conditions across all our accommodation.   We do and will walk the talk on ESG and reflect our actions accurately in our sustainability reports.

 

 

Not first incident...

Are they waiting for the authorities to come in, and then the resources and funds utilised will be under the govt instead of theirs? Hmm...

TradeExpert      ( Date: 22-Apr-2021 09:30) Posted: https://www.channelnewsasia.com/news/singapore/covid19-11-workers-westlite-woodlands-dormitory-14667058

 

Aid floods in for Chinese workers alleging neglect in Singapore dormitory hit by Covid-19
9:37pm, 14 Oct, 2021

The Chinese diaspora and embassy in Singapore are pitching in to help workers grappling with poor living conditions after being alerted to their plight by a viral post on WeChat

At one point, riot police were called to the dorm. The Chinese embassy now says it is closely monitoring the situation and local authorities are " working hard to resolve the workers' demands"

A viral WeChat post about Chinese foreign workers grappling with poor conditions and delayed access to medical aid in a  Singapore  dormitory affected by Covid-19 has prompted an outpouring of aid and support, including from Beijing& rsquo s embassy in the city state.

Local media said disquiet in the dormitory in Singapore& rsquo s largely industrial Jurong district reached a tipping point on Wednesday, with armoured riot police called in at one point as a precautionary measure.

The Singapore Police Force declined to comment.

Singapore& rsquo s Ministry of Manpower meanwhile said its officers had been deployed to the site to investigate.

" Preliminary investigations found that there were indeed some delays in conveyancing workers who tested positive for Covid-19 from their rooms to a care or recovery facility," the ministry said.

The WeChat post, by an account that frequently posts Singapore-centric news, on Tuesday said about a quarter of the Westlite Jalan Tukang dormitory' s 2,000 residents had tested positive for Covid-19.

Among other things, the post claimed the process of isolating infected residents was inadequate, that there was a shortage of medical supplies and that only critically ill workers were taken from the dormitory to receive medical assistance.

" People were down with fever and positive cases were everywhere. The virus lurks in every corner of the dormitory," it added.

The post included screenshots of what appeared to be conversations with workers living in the dormitory, who said that the rooms were not disinfected and that they often found worms, flies and strands of hair in their food. Other images show workers donning helmets and outfits that belonged to shipbuilding firm Sembcorp Marine.

" Chinese workers face unfair treatment and their dignity is trampled on," the post said. " They love Singapore and are willing to sacrifice to help the virus situation but they are now shoved aside."

Embassy weighs in

A spokeswoman for the Chinese embassy told the  South China Morning Post  it viewed the episode with " great importance" .

" The embassy has contacted and communicated with the relevant Singapore authorities and they are working hard to resolve the workers' demands."

The spokeswoman added that the workers' emotions were now " stable" , and that it had sent medical supplies such as masks and disinfectant wipes to the dormitory.

" We will continue to track developments, maintain communication with the Singapore side, and protect the health and safety of our workers," ' she said.

After the post went viral, Philip Chan, president of the Hong Kong Singapore Business Association and the Kowloon Club, donated 20,000 masks to the workers, saying that he " just wanted to help" after hearing about their situation.

On social media, Chinese nationals rallied others to donate items to the low-wage workers. " Even though I am physically in China, I can buy supplies online and help reduce the suffering of my compatriots," one WeChat user wrote.

http://https//www.scmp.com/week-asia/health-environment/article/3152384/aid-floods-chinese-workers-alleging-neglect-singapore

One of the Chinese workers is taken for medical treatment after the WeChat post highlighted their plight. Photo: WeChat:


The post included screenshots of what appeared to be conversations with workers living in the dormitory, who said that the rooms were not disinfected and that they often found worms in their food. Photo: WeChat


Workers are shown sleeping on the floor in the WeChat post. Photo: WeChat​



























































 

 

Armed police called as tempers fray amid Covid outbreak at dorm housing Sembcorp Marine workers
14 October 2021 16:31 GMT

Singapore& rsquo s Sembcorp Marine has been hit with another coronavirus outbreak among its workers, with a recent spike in cases at a dormitory in Jurong that houses some of its migrant workers and tempers have frayed among those in residence.

The Ministry of Manpower on Wednesday confirmed it sent officers from its Forward Assurance and Support Teams to  investigate allegations  regarding breaches of Covid-19 health protocols, a lack of access to medical support and the poor quality of catered food at the Westlite Jalan Tukang dormitory, reported Channel News Asia.

The 3400-bed dormitory, which houses about 1400 Sembmarine workers, saw a heavy security presence on Wednesday afternoon, with armoured riot police and Special Operations Command vehicles deployed as tempers ran high among workers.

" Over the past week, there has been a spike in cases detected among SembCorp Marine workers. Due to the large numbers, there have been delays in conveyance to recovery facilities and healthcare facilities," dormitory operator Centurion was quoted by CNA.

Centurion said it has been working closely with the ministry& rsquo s Assurance, Care and Engagement (ACE) group to " overcome the logistical challenges posed by this recent increase" in Covid infections.

Sembmarine in a statement said it has been monitoring the increase in the number of Covid-positive cases at the Tukang Dorm for the past one week and has been engaging with the dormitory operator to address our workers& rsquo concerns including the measures to isolate Covid-positive cases within the dormitory and the medical care rendered.

& ldquo We understand that Westlite is following the mandatory Covid-19 health testing and movement protocols and they have been working closely with the relevant authorities.& rdquo

The offshore and marine contractor added that, according to the current protocols, workers who test positive from the antigen rapid test are isolated from other residents in the dormitory recovery facility or moved out by the authorities to external centralised recovery facilities.

The new cluster at Sembmarine& rsquo s Admiralty Yard was first identified in mid-September. The ministry said that transmission took place in the workplace with further spread to household contacts of the infected persons.

Of the 26 initially identified infections, 23 were staff members and three were household contacts.

Sembmarine stressed that the safety and wellbeing of its workers are its foremost concern.

Many of the projects under construction at the contractor& rsquo s Singapore facilities have been delayed & ndash directly and indirectly & ndash by the coronavirus pandemic as workers tested positive for the potentially fatal infectious disease amid increasing logistical challenges.

http://https//www.upstreamonline.com/coronavirus/armed-police-called-as-tempers-fray-amid-covid-outbreak-at-dorm-housing-sembcorp-marine-workers/2-1-1082671

 

Transfer of COVID-19 cases from Jurong dormitory delayed due to ' spike' among Sembcorp Marine workers, says operator
15 Oct 2021 12:26AM

SINGAPORE: The transfer of COVID-19 cases from a migrant workers' dormitory in Jurong to recovery and healthcare facilities was delayed due to a " spike" in infections among Sembcorp Marine workers, the dormitory operator said on Thursday (Oct 13).

Centurion Corporation, which operates Westlite Jalan Tukang dormitory, said in a statement that it wanted to provide " context and clarity" to claims  made in relation to Sembcorp Marine workers living at the dormitory.

The Ministry of Manpower (MOM) on Wednesday said it sent officers from its Forward Assurance and Support Teams (FAST) to  investigate allegations  about  breaches of COVID-19 health protocols, a lack of access to medical support and the poor quality of catered food at the  dormitory.

The claims were published in an online article on Weixin, the domestic version of WeChat used in China.

Westlite Jalan Tukang dormitory saw heavy security presence on Wednesday afternoon, with armoured riot police and Special Operations Command vehicles deployed.

The dormitory has a capacity of 3,400 beds, of which 40 per cent - about 1,400 beds - are occupied by Sembcorp Marine workers, said Centurion on Thursday.

" Over the past week,  there has been a spike in cases detected among Sembcorp Marine workers. Due to the large numbers, there have been delays in conveyance to recovery facilities and healthcare facilities," said the operator.

Centurion said it has been working closely with MOM' s Assurance, Care and Engagement (ACE) Group to " overcome the logistical challenges posed by this recent increase" in COVID-19 infections.

It said all the cases have been taken to the appropriate care or recovery facilities, and added that ACE Group has deployed a mobile medical team at the dormitory.

" ACE, Sembcorp Marine and Westlite together are also adding efforts to educate the migrant worker residents on testing and health management policies and protocols, as defined by the Singapore authorities, which differ from perspectives from their home countries and cultures," said Centurion.

The operator said COVID-19 testing and movement protocols " have been followed at Westlite Jalan Tukang and are being followed" .

" Westlite Accommodation enforces safe living measures at the dormitory, and works closely with the authorities who are maintaining a tight surveillance on migrant workers who test positive for COVID-19," it said.

CATERED FOOD

Centurion also responded to claims about the poor quality of food catered for workers at the dormitory.

" Catered meals for Sembcorp Marine workers staying in Westlite Jalan Tukang are provided and managed by Sembcorp Marine," said the operator.

" We understand the company has listened to feedback from their workers, has made adjustments and will continuously improve their catering provider' s service and food quality."

Delineating its responsibilities as an accommodation provider, Centurion said its role was to " provide good quality living environments to all our residents" and  " assist in the distribution or collection of meals catered by employers for their workers residing with us" .

It said its role was also to " help coordinate between the authorities, health providers and employers around measures to contain and manage COVID-19" .

http://https//www.channelnewsasia.com/singapore/westlite-jalan-tukang-dormitory-sembcorp-marine-migrant-workers-covid19-2244771

 

https://www.channelnewsasia.com/singapore/westlite-jalan-tukang-dormitory-sembcorp-marine-migrant-workers-covid19-2244771

 

SINGAPORE: The transfer of COVID-19 cases from a migrant workers' dormitory in Jurong to recovery and healthcare facilities was delayed due to a " spike" in infections among SembCorp Marine workers, the dormitory operator said on Thursday (Oct 13).

Centurion Corporation, which operates Westlite Jalan Tukang dormitory, said in a statement that it wanted to provide " context and clarity" to claims  made in relation to SembCorp Marine workers living at the dormitory.

The Ministry of Manpower (MOM) on Wednesday said it sent officers from its Forward Assurance and Support Teams (FAST) to  investigate allegations  about  breaches of COVID-19 health protocols, a lack of access to medical support and the poor quality of catered food at the  dormitory.

The claims were published in an online article on Weixin, the domestic version of WeChat used in China.

Westlite Jalan Tukang dormitory saw heavy security presence on Wednesday afternoon, with armoured riot police and Special Operations Command vehicles deployed.

 

The dormitory has a capacity of 3,400 beds, of which 40 per cent - about 1,400 beds - are occupied by SembCorp Marine workers, said Centurion on Thursday.

" Over the past week,  there has been a spike in cases detected among SembCorp Marine workers. Due to the large numbers, there have been delays in conveyance to recovery facilities and healthcare facilities," said the operator.

Centurion said it has been working closely with MOM' s Assurance, Care and Engagement (ACE) Group to " overcome the logistical challenges posed by this recent increase" in COVID-19 infections.

It said all the cases have been taken to the appropriate care or recovery facilities, and added that ACE Group has deployed a mobile medical team at the dormitory.

" ACE, SembCorp Marine and Westlite together are also adding efforts to educate the migrant worker residents on testing and health management policies and protocols, as defined by the Singapore authorities, which differ from perspectives from their home countries and cultures," said Centurion.

The operator said COVID-19 testing and movement protocols " have been followed at Westlite Jalan Tukang and are being followed" .

" Westlite Accommodation enforces safe living measures at the dormitory, and works closely with the authorities who are maintaining a tight surveillance on migrant workers who test positive for COVID-19," it said.

CATERED FOOD

Centurion also responded to claims about the poor quality of food catered for workers at the dormitory.

" Catered meals for SembCorp Marine workers staying in Westlite Jalan Tukang are provided and managed by SembCorp Marine," said the operator.

" We understand the company has listened to feedback from their workers, has made adjustments and will continuously improve their catering provider' s service and food quality."

Delineating its responsibilities as an accommodation provider, Centurion said its role was to " provide good quality living environments to all our residents" and  " assist in the distribution or collection of meals catered by employers for their workers residing with us" .

It said its role was also to " help coordinate between the authorities, health providers and employers around measures to contain and manage COVID-19" .

CNA has reached out to SembCorp Marine for comment.

DORMITORY HEALTH  PROTOCOLS

According to MOM' s website, migrant workers are subject to the Ministry of Health' s latest  simplified  health protocols.

Close contacts of COVID-19 cases are issued a  health risk warning and required to take an antigen rapid test every day for seven days.

If they test negative, they are allowed to leave the dormitory and go to work.

If they  test positive but are fully vaccinated and asymptomatic, they recover in  a dormitory recovery facility or a centralised recovery facility.

Workers who test positive  are isolated from other residents in the dormitory recovery facilities, said Centurion. Centralised recovery facilities  are externally located and cases are transferred there by the authorities, it added.

According to MOM, if workers test positive and are unvaccinated or symptomatic, they must isolate in a dormitory isolation facility or swab isolation facility while waiting for the results of a confirmatory polymerase chain reaction (PCR) test.

If the PCR test result is negative, they can return to work. If it is positive, the workers will be brought to a community care facility or hospital depending on their condition.

This  transfer to external facilities is carried out by medical authorities, said Centurion.

Roommates of workers who test positive using ARTs should test themselves using ART if necessary and monitor their health, according to the MOM website.

 

RHB lowers Centurion' s TP to 36 cents as Covid-19 headwinds remain

RHB Group Research analyst Jarick Seet has maintained " neutral" on Centurion Corporation as headwinds for workers' and students' accommodations remain amid the ongoing Covid-19 pandemic.

To date, the number of Covid-19 cases in Singapore and Malaysia, where Centurion Corporation operates, is still on the rise.

In his report dated Sept 19, Seet has also lowered his target price to 36 cents from 41 cents previously despite the " resilient" numbers posted in the 1HFY2021 ended June. During the six-month period, the dormitory operator saw earnings decline by 58% y-o-y to $8.7 million, while revenue dipped 3% y-o-y to $64.7 million.

" If not for the $14.49 million fair value loss on its properties, 1HFY2021 would have been fairly decent, despite all the Covid-19-related headwinds," writes Seet.

However, student accommodation is still likely to be impacted by the ongoing travel restrictions. Universities now are also pivoting to deliver their courses via a hybrid of physical and online lectures.

" The average financial occupancy for its UK purpose-built student accommodation (PBSA) was 66% in 1HFY2021, compared to 74% in 1HFY2020. For the upcoming academic year 2021/2022, Centurion has pre-leased over half of its bed capacity," notes Seet.

Headwinds for workers' accommodations remain as well. In the 1HFY2021, Singapore registered lower occupancy owing to the restricted inflow of migrant workers and the availability of interim alternative housing to manage Covid-19 risks. This was mitigated by a stable occupancy rate in Malaysia, says Seet.

To this end, he expects the low occupancy rates to persist for Centurion owing to the number of Covid-19 cases in Singapore recently.

Rounding off, Seet concludes that he likes Centurion for its resilience. However, the impact of Covid-19 on its student and workers' accommodation businesses should be factored in.

As it is, Seet does not see any immediate rerating catalysts, which are dependent on the resumption of travel and inflow of migrant workers.

" An economic recession and a resurgence of Covid-19 infections [pose as key risks to the counter]," says Seet.

 

Analysts mixed on prospects of Centurion Corp

UOB Kay Hian (UOBKH) is maintaining its ' buy' call on Centurion Corp but at a revised target price of 43 cents.

This is 1.5 cents lower than its previous 44.5 cent call and is believed to give the counter a 28.4% upside from its 34 cent price, analyst Adrian Loh writes in an Aug 18 note.

" We used a target P/B (price-to-book) multiple of 0.6x which is in line with Centurion' s past five-year average P/B of 0.61x, which we believe is fair. Currently, it trades at 0.44x P/B which is > 1.5SD below its five-year average.

Loh believes that Centurion will be trading at 9.0x 2022 P/E (price-to-earnings) at his price target.

His move follows the dormitory operator' s 1H21 results. Revenue was down 3% y-o-y to $64.7 million while gross profit fell by 10% y-o-y to $43.6 million.

In line with this, gross profit margin was just over 67%, a 5 percentage point decline from the previous year.

Loh says the group' s 1H21 revenue and gross profit make up 51% and 53% of his full-year estimates respectively.

Overall, PATMI (profit after taxes minus interest) plunged by 58% y-o-y to $8.7 million following net fair value losses of $14.5 million on its investment properties.

" Centurion' s in line 1H21 results showed a decent level of resilience now that vaccination rates have reached very high levels in its key market segments, and thus have had a positive knock-on effect on economic activity," says Loh.

He believes the group' s earnings have troughed and outlook remains solid.

However, Loh points out that costs at Centurion' s purpose-build workers' accommodation (PBWA) have increased by 15% y-o-y as more staff are needed on the ground to ensure that safe management measures are being adhered to.

The group has been dampening these costs with technology.

The management says the group has not been significantly impacted by the Covid-19 clusters at its PBWA assets at Juniper and Mandai. 

With only parts of the dormitories been putting shut off, the Centurion team does not expect any significant cash impact or termination of leases.

Analysts from DBS Group Research expect demand to return progressively at the group' s PBWAs in Singapore once the Manpower permits the entry of migrant workers from high risk countries.

" Given that a vast majority of foreign workers hail from countries that are high risk, we think demand for Singapore PBWAs and in turn occupancies will improve from the 82% in 1H21 but may not exceed the 90% occupancy level," they add.

On the other hand, the group' s purpose built students' accommodation (PBSA) assets in Singapore and Australia remained in the doldrums in 1H21.

The asset in Melbourne has been affected by poor occupancy following the restrictions on international students' travel. Meanwhile, its asset in dwell Selegie in Singapore was hit by the extension waiver of its third final two-year lease.

DBS' analysts do not foresee improvements in the occupancy levels in the Australian PBSA due to the new restrictions.

However, they note that the relaxation of restrictions in the UK bodes well for the groups' PBSAs there.

Going forward, UOBKH' s Loh and analysts from DBS say that green shoots of recover can be seen following the easing of Phase 2 (Heightened Alert) restrictions in Singapore and the lifting of movement restrictions from July 19 in the UK.

The group also stands to gain from healthy occupancy levels at its PBWAs in Malaysia. 

Its biggest challenge is the uneven resumption of work and university on-campus programmes as there are varying levels of vaccination rates, movement control restrictions and lockdown policies across its geographic segments. 

To this end, Loh has downgraded his full-year earnings forecast by 34% to take into account the fair value loss.

" Our net profit estimate for 2021 is skewed towards a higher bottom-line in 2H21 given that out of the company' s full-year guidance of 8,488 new beds in 2021 (growth of 12% yoy), Centurion has seen 3,840 or 45% of the total come online in 1H21," he elaborates.

Meanwhile, DBS' analysts are maintaining a ' hold' call on the counter at a 38 cent target price.

Shares in Centurion closed flat at 33.5 cents on Aug 18.

 

 

 

Centurion books fair value loss of $14.5 mil, 1HFY2021 earnings down 58% y-o-y

Dorm operator Centurion Corp has reported earnings of $8.7 million for 1HFY2021, down 58% y-o-y, as the company booked a fair value loss of $14.5 million on its properties.

Excluding fair value adjustments, profit from core business operations attributable to equity holders was just 3% down y-o-y to $20.4 million.

Revenue in the same period was 3% to $64.7 million.

While revenue from its workers dorm held steady, its student dorm portfolio, which accounted for around a quarter of its total revenue, suffered a revenue drop of 25% y-o-y.

The company is maintaining a steady expansion into new market segments, and has enjoyed returns from some of these, including the so-called " quick build dormitories" .

" Centurion has delivered a resilient set of results notwithstanding the challenges arising from the Covid-19 pandemic," says CEO Kong Chee Min.

" We will continue to strengthen management expertise and track record to drive portfolio expansion and value creation, in order to deliver sustainable value for our stakeholders," he adds.

Centurion' s Singapore quoted shares closed Aug 10 at 33 cents, down 1.49% for the day, and down 8.33% year to date.

 

 

 

https://www.channelnewsasia.com/news/singapore/covid19-11-workers-westlite-woodlands-dormitory-14667058