Centurion Corp (CENT SP) – A Safe Harbour Amid Trump’s Tragic Tariffs
Monday, 14 April 2025
Company Description and Analysis
Centurion Corp, a leading provider of purpose-built workers’ accommodation (PBWA) and purpose-built students’ accommodation (PBSA), has maintained its BUY recommendation with a target price of S$1.48 and an upside of +32.1%. The company boasts a significant presence in Singapore, Malaysia, Hong Kong, the UK, and Australia, with a robust outlook for the construction sector and inelastic demand for education expenditure.
Stock Data and Financials
Share Price: S$1.12
Target Price: S$1.48
Upside: +32.1% (Previous TP S$1.16)
GICS Sector: Real Estate
Bloomberg Ticker: CENT SP
Shares Issued: 840.8 million
Market Cap: S$941.7 million (US$714.1 million)
3-month Average Daily Turnover: 1.5 million
Key Growth Drivers and Projects
Centurion Corp remains a key stock for investors in turbulent times due to its earnings growth backed by a strong outlook for the Singapore construction sector. The company has a robust pipeline with significant projects:
Singapore’s Construction Boom: The Building & Construction Authority forecasts construction spending to remain elevated at S$39-46 billion from 2026 to 2029.
Malaysia’s Potential Growth: The proposed Johor-Singapore Special Economic Zone could lead to additional demand for CENT’s PBWA assets, with potential acquisition announcements in the near to medium term.
Financial Highlights and Performance
Revenue: S$124 million (nearly 70% from Singapore)
Net Profit: CENT reported a net profit of S$345 million in 2024, with a strong balance sheet and a lower net debt/equity ratio of 0.3x.
2025F PE: 9.5x, with a net margin of >38%.
Earnings Growth and Outlook
2024 Revenue: S$124m, with 69.4% from Singapore, 7.6% from Malaysia, 6.6% from Australia, and 15.8% from the United Kingdom.
Mega Projects: CENT’s PBWA assets are underpinned by multi-year projects such as the Marina Bay Sands expansion (S$10.7b), Resorts World Sentosa expansion (S$6.8b), Changi Airport Terminal 5 (S$11.0b), and the North-South Corridor (S$7.5b).
Unlocking Shareholder Value via REIT Spin-off
Management is actively exploring a spin-off of some of its PBWA and PBSA assets into a REIT to unlock shareholder value.
The proposed REIT will be of a “reasonable size,” reflecting the company’s significant asset growth since its initial 2015 REIT exploration.
Valuation and Recommendation
Maintain BUY: CENT remains a key stock due to its earnings growth and strong outlook for the Singapore construction sector.
Target PE Multiple: Raised to 10.6x, which is 1SD above the company’s long-term average PE multiple of 6.9x (excluding 2019, which was affected by COVID-19).
Detailed Financials and Projections
Key Financials:
Year 2023 2024 2025F 2026F 2027F
Net Turnover S$207m S$254m S$253m S$272m S$285m
EBITDA S$209 S$378m S$146m S$156m S$164m
Profit & Loss Statement:
| Year | 2024 | 2025F | 2026F | 2027F | |———–|———|———|———|——-|———-| | Net Turnover | S$254m | S$253m | S$272m | S$285m |
Balance Sheet:
| Year | 2024 | 2025F | 2026F | 2027F | |————|———-|———|———|———|———-| | Fixed assets | 12 | 12 | 12 | 12 | 12 | | Cash/ST investment | 89 | 117 | 150 | 216 | 150 |
Cash Flow and Key Metrics:
Operating Cash Flow: S$154m, S$130m, S$137m, and S$140m for 2024, 2025F, 2026F, and 2027F, respectively.
Net Profit: CENT reported a net profit of S$345 million in 2024, with projections of S$99m, S$108m, and S$118m for 2025, 2026, and 2027, respectively.
Growth Prospects and Market Trends
Inelastic Demand: Both PBWA and PBSA assets exhibit high inelastic demand.
PBWA and PBSA Assets: CENT’s business model insulates revenues and profitability from exogenous shocks.
Singapore Construction: Expected to remain robust with key projects such as the Marina Bay Sands expansion and Changi Airport Terminal 5.
Conclusion and Recommendation
Maintain BUY: CENT remains a key stock for investors due to its earnings growth and exposure to both PBWA and PBSA assets.
Target Price: S$1.48, reflecting a potential upside of +32.1%.
Upside Potential: CENT’s current metrics are inexpensive, trading at 2025F PE of 9.5x and 0.8x P/B.
Centurion Corp (CENT SP) – Key Statistics
Metrics 2023 2024 2025F 2026F 2027F
Net Turnover S$207m S$254m S$253m S$272m S$285m
EBITDA S$209m S$37838m S$146m S$156m S$164m
Analyst’s Insights and Share Price Catalysts
A proposed REIT spin-off of PBWA and PBSA assets could enhance investor sentiment and increase demand for CENT shares.
Successful capital recycling efforts or capacity expansions involving JVs could result in a more asset-light business model.
Financial Highlights and Forecasts
Profit & Loss Statement:
| Year | 2024 | 2025F | 2026F | 2027F | |————–|———–|———–|———–|———–|———–| | Net Turnover | S$124m | S$253m | S$272m | S$285m | S$253 | | EBITDA | S$378m | S$146m | S$156m | S$164m | S$164m |
Balance Sheet and Cash Flow:
| Year | 2024 | 2025F | 2026F | 2027F | |————|———-|———|———|———|———-| | Net Turnover | S$254m | S$253m | S$272m | S$285m |
Growth and Market Trends
Mega Construction Projects: Underpin demand for CENT’s PBWA assets, including Marina Bay Sands and Changi Airport Terminal 5.
PBWA Assets in Malaysia: CENT is clearly bullish on the PBWA sector, with potential acquisition announcements.
Detailed Financials and Projections
Profit & Loss:
| Year | 2024 | 2025F | 2026F | 2027F | |————–|———–|———–|———–|———–|———–| | Net Turnover | S$124m | S$253m | S$272m | S$285m |
Share Price Performance and Catalysts
The share price has shown resilience with a 52-week high/low of S$1.27 / S$0.43.
Proposed REIT Spin-off: Management is actively exploring a spin-off of assets into a REIT, which could unlock shareholder value.
Broader Market and Competitive Landscape
Singapore Construction: Expected to remain robust, with S$47-53 billion forecasted for 2025 and S$39-46 billion for 2026-2029.
Malaysia’s PBWA Sector: CENT is bullish on potential acquisitions and growth in the Malaysian market.
Investment Considerations
Earnings Growth: CENT’s business model, with exposure to both PBWA and PBSA assets, insulates it from exogenous shocks.
Inelastic Demand: High inelastic demand for PBWA and PBSA assets underpins growth.
Centurion Corp – Key Metrics and Financials
Profit & Loss Statement:
| Year | 2024 | 2025F | 2026F | 2027F | |————–|———–|———–|———–|———–|———–| | Net Turnover | S$124m | S$253m | S$272m | S$285m | | EBITDA | S$378m | S$146.146m | S$156m | S$164m |
Company Description
Centurion Corp is one of the largest providers of purpose-built workers’ accommodation (PBWA) in Singapore and Malaysia, with exposure to student accommodation in Hong Kong, the UK, and Australia.
Key Statistics:
GICS Sector: Real Estate
Bloomberg Ticker: CENT SP
Shares Issued: 840.8 million
Market Cap: S$941.7 million (US$714.1 million)
3-month Average Daily Turnover: 1.5 million
Growth Prospects and Market Trends
Singapore Construction: Expected to remain robust.
Malaysia’s PBWA Sector: CENT is clearly bullish, with potential acquisition announcements.
Centurion Corp’s Financial Performance
Key Financials:
Year 2023 2024 2025F 2026F 2027F
Net Profit S$153m S$345m S$99m S$108m S$118m
Valuation and Recommendation
Maintain BUY: CENT’s current metrics are inexpensive, trading at 2025F PE of 9.5x and 0.8x P/B.
The target PE multiple is applied to the average of 2025 and 2026 EPS estimates.
Share Price Catalysts
Proposed REIT Spin-off: Management actively explores a spin-off of some of its PBWA and PBSA assets into a REIT.
A successful capital recycling effort or capacity expansions involving JVs could enhance investor sentiment.
Centurion Corp’s Business Segments and Revenue Breakdown
Geographic Segments: Singapore (69.4%), Malaysia (7.6%), Australia (6.6%), and the United Kingdom (15.8%).
Investment Strategy and Outlook
Maintain BUY: With a target price of S$1.48 and an upside of +32.1%.
Inelastic Demand: CENT’s PBWA and PBSA assets exhibit high inelastic demand.
Financial Performance and Forecasts
Forecasts:
Year 2023 2024 2025F 2026F 2027F
Net Turnover S$207m S$254m S$253m S$272m S$285m
Net Profit S$153m S$345m S$99m S$ 108m S$108m
Analyst Insights and Recommendations
Maintain BUY: CENT’s business model and policy changes to lower density within PBWA assets underpin its growth.
The stock appears inexpensive, trading at a 2025F PE of 9.5x and 0.8x P/B.
Disclaimer and Disclosures
For important disclosures, refer to the last page of this report.
