Centurion    Last:1.44    -0.01

Centurion Corp

Centurion (CENT SP) SGD0.57                     BUY (TP: SGD0.83)

Exploring a REIT Listing

Centurion has announced that it is currently exploring the feasibility of establishing a REIT. Maintain BUY with an SGD0.83 TP (45.6% upside). We think that it is mainly the Singapore dormitories that will be injected and regard this as a short-term positive for Centurion, as it could greatly lower its gearing and unlock its value for these Singapore dormitories. We also expect the management to reward shareholders with a special dividend if the listing goes through.

Lowering its gearing in one blow. With interest rates expected to rise, Centurion could lower its gearing substantially if it injects its Singapore dormitories into the proposed REIT, which would be positive for the company. Centurion&rsquo s gearing stood at about 120% as of Dec 2014.

Unlocking value. Most of its Singapore dormitories are tendered at much lower prices as well as lower construction costs in the past. Over the years, they have booked a sizeable amount of revaluation gains, which will likely allow Centurion to fully unlock the value of its Singapore dormitories, depending on the price it injects the dormitories at.

Recycling capital.  The Centurion management team has built up a good track record investing in accommodation assets over the past few years. The cash from the sale of its assets can be used for further potential strategic acquisitions.

Providing an additional option for investors.  By establishing a REIT, Centurion aims to provide an additional option to investors who are seeking stable dividend gains, while at the same time allowing those who are more focused on growth to continue to be invested in Centurion.

Potential special dividend.  We believe that the management team will reward its shareholders by means of a special dividend if the REIT listing is successful.

Maintain BUY with a SGD0.83 TP.  We believe that this REIT listing will be positive for Centurion in terms of unlocking its asset value and solving its high gearing. Maintain BUY with an SGD0.83 TP.

 

How to short centurion? Major shareholders control most shares...think.more than 80%
I never short any counters before but may try next time for top 20 vol counters only
i just dont like centurion behave.like yong nam or tee int..sudden surge in price and vol before halt.....feel no very fair.for those sell.cheap before halt...lol

 

SeaOfRed      ( Date: 16-Jan-2015 23:23) Posted: Must let go to let you cover Centurion shorts... Wee Hur longist aka Centurion shortist! edwinjup      ( Date: 16-Jan-2015 17:57) Posted: Say wan to list reit.......seems news leak before halt... .sian But if list work dormitory reit...think better dont keep long.

 

Must let go to let you cover Centurion shorts... Wee Hur longist aka Centurion shortist!

edwinjup      ( Date: 16-Jan-2015 17:57) Posted: Say wan to list reit.......seems news leak before halt... .sian But if list work dormitory reit...think better dont keep long.. K.tan79      ( Date: 16-Jan-2015 16:34) Posted: On Hold ..since morning till now ...anyone got any news ?

 

Say wan to list reit.......seems news leak before halt... .sian
But if list work dormitory reit...think better dont keep long..

K.tan79      ( Date: 16-Jan-2015 16:34) Posted: On Hold ..since morning till now ...anyone got any news ?

 

On Hold ..since morning till now ...anyone got any news ?

 

Very undervalued stock , but will fly soon

pepperfox      ( Date: 18-Nov-2014 08:53) Posted: Centurion has won an open tender for a potential development of a workers village with a capacity of approx. 12,000 beds for MYR 20.8m (S$8.1m). The acquisition and proposed Development will be funded through internal resources and bank borrowings. The land has a lease of 99 years. Phase 1 (6,000 beds) of the Proposed Development is expected to complete in the 2H16 and Phase 2 (6,000 beds) is expected to complete within 2 years after the completion of Phase 1.   :)

 

And king wan

edwinjup      ( Date: 18-Nov-2014 07:53) Posted: With the new govt ruling....it will help centurion (23500beds) & weehur (16800 beds)....expect the demand will surge early next year as govt stop all marine and process sectors to rent hdb flat.......

 

Next target - 60????

 

Centurion has won an open tender for a potential development of a workers village with a capacity of approx. 12,000 beds for MYR 20.8m (S$8.1m). The acquisition and proposed Development will be funded through internal resources and bank borrowings. The land has a lease of 99 years. Phase 1 (6,000 beds) of the Proposed Development is expected to complete in the 2H16 and Phase 2 (6,000 beds) is expected to complete within 2 years after the completion of Phase 1.

 

:)

 

With the new govt ruling....it will help centurion (23500beds) & weehur (16800 beds)....expect the demand will surge early next year as govt stop all marine and process sectors to rent hdb flat.......

 

This stock have been consolidating for sometime , would think of Jurong Lake District future developement would demand for more workers accomodation and convenience from various companies. 

 

Some buying interest today. Vested with some paper loss. Not everytime win wan hor...   Hahahaha. 

 

Dear Loh Wei Chi aka BlueDogMeow aka author of chemiccapital blog, I seriously doubt your integrity trying to pass off some high school project on your blog as a financial report from some analyst. Please remember to cover your tracks online as a search on your userid BlueDogMeow on google returns your real name Loh Wei Chi. For bros who actually believed his call, as well as the CIMB analysts who might have acted on his call, it is not too late to get back on track.

BlueDogMeow      ( Date: 06-Sep-2014 13:10) Posted: check out cornerofbershireandfairfax, i found his post there.  SeaOfRed      ( Date: 06-Sep-2014 13:04) Posted: Wow bro, it seems you can predict what the chemiccapital blog author is gonna post in August.

 

By the way bro, if you actually follow chemiccapital' s posts on that ulu forum, you would have realised he posted that he was still in high school. I will not trust taking a short position or a bearish call coming from someone who has not yet even graduated from high school.

BlueDogMeow      ( Date: 06-Sep-2014 15:15) Posted: I have yet to see a rebuttal to my case SeaOfRed      ( Date: 06-Sep-2014 15:03) Posted: I hope everyone following this thread does their own analysis before taking a position. For all you know, all these so-called financial blogs are created by forummers for self-gain.

 

Come on la bro. You want to sell just sell. Don' t expect me to do homework for you. Anyway I' m keeping my shares till the next rebound. So I won' t be one of those throwing out to you just because you want to buy in cheap. I don' t have training in stock analytics but I know a good stock when I see one. Maybe the selling will carry on for the next few weeks or even months, but I' m confident a rebound will come before the next earnings announcement date.

 

 

BlueDogMeow      ( Date: 06-Sep-2014 15:15) Posted: I have yet to see a rebuttal to my case SeaOfRed      ( Date: 06-Sep-2014 15:03) Posted: I hope everyone following this thread does their own analysis before taking a position. For all you know, all these so-called financial blogs are created by forummers for self-gain.

 

I hope everyone following this thread does their own analysis before taking a position. For all you know, all these so-called financial blogs are created by forummers for self-gain.

BlueDogMeow      ( Date: 06-Sep-2014 13:08) Posted: But unfortuantely, I did not follow my own advice and short this company. It would had been amazing.  SeaOfRed      ( Date: 06-Sep-2014 13:04) Posted: Wow bro, it seems you can predict what the chemiccapital blog author is gonna post in August.

 

Eerily strange that he posted your exact same words. Can see the same writing styles too. 

 

BlueDogMeow      ( Date: 06-Sep-2014 13:08) Posted: But unfortuantely, I did not follow my own advice and short this company. It would had been amazing.  SeaOfRed      ( Date: 06-Sep-2014 13:04) Posted: Wow bro, it seems you can predict what the chemiccapital blog author is gonna post in August.

 

Wow bro, it seems you can predict what the chemiccapital blog author is gonna post in August.

BlueDogMeow      ( Date: 24-Jul-2014 00:30) Posted: Does it really make sense for this company to be worth 75c/share? The company is trading at 1.87x tangible book value, and that is when the company is using mark to model accounting, where the company does a discounted cashflow analysis to get to the " fair" value of the investment properties. Even if we assume that the assumptions used in the mark to model is accurate, the most one shld pay is 1x tangible book isnt it? Because the company basically did the valuation work for you.  The company already seems heavily levered at the moment, and now they plan to invest 164.5m in UK students' dormitories? The company OPCF last year was 32m and that was into $70m cash and $270m debt, $100m of which is interest bearing. Now, assuming cash is fully utilized, it will be into $360m debt, $190m of which is interest bearing. And it is not as if they are getting cheap financing. Their coupon rate is 5.25%, and those are senior debt. Based on students dormitories comparables, at best, an $11m accretive EBITDA. That means an OPCF - I/R of $33m into $360m debt while their credit facilities are medium term(3-5 years), rolling and running out, WHILE the forward curve is steepening.  And this is just the tip of the iceberg.

 

Are you saying you believe word for word a blog which was just created in August?

The author doesn' t even post his credentials.

BlueDogMeow      ( Date: 06-Sep-2014 12:39) Posted: Hi, I am not trying to spread false rumors here. It just seems to be the true economics of the business.  check out chemiccapital blog spot sg.  SeaOfRed      ( Date: 06-Sep-2014 12:32) Posted: Try setting up a dormitory for foreign workers and see if there are barriers to entry. Singapore' s construction industry is slowing down due to the current oversupply of flats, but BTO constructions are still in progress and HDB has the responsibility to delivery them by the delivery possession dates,   which may well extend to 4 years from now. Up till then, foreign construction workers are still very much needed here. Not to mention the construction of the MRT lines that extend beyond 2020. If you want to sell just sell, but don' t spread false rumours here. These are facts here to stay in the long term.