- Centurion Corporation Limited (CCL) released 1Q26 update with limited financials. 1Q26 revenue is within our expectations, at 24% of our FY26e forecast. 1Q26 revenue spiked up 30% YoY to S$89.4mn, driven by revenue growth across all PBWA and PBSA segments. 1Q26 revenue included an additional 55% stake of 8000-bed Westlite Mandai, and additional 5,460 new beds (+16% capacity) from AEI expansion, driving Singapore revenue up 29% YoY to S$62.6mn.
- CCL entered Australian key worker accommodation (KWA) through two separate acquisitions in Apr 2026 - 321 beds in Karratha, and 125 beds in South Hedland. Both Karratha and South Hedland are in Pilbara region, which produces approximately 96% of Australia's iron ore export. We estimate the KWAs could contribute ~S$6.5mn in FY26e revenue (2% of FY25 revenue), assuming acquisitions complete from Jul 2026.
- We maintain BUY with a higher TP of S$1.85 (prev. S$1.81). We raised FY26e revenue/adj. PATMI by 6%/8% respectively, due to higher contributions expected from management contract secured for a 1500-bed third-party dormitory, EPIISOD Macquarie Park, and Australia KWA. Management service fees of CAREIT contributed S$7mn to 1Q26 revenue (1Q25: S$0.2mn). We expect CAREIT management fees to contribute ~S$16mn to FY26e PATMI (15% of FY25 adj. PATMI).
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