Centurion Corporation Limited – Portfolio expansion drives longer-term growth November 17, 2025 8

PSR Recommendation: BUY Status: Upgraded
Last Close Price: 1.4 Target Price: 1.81
  • Centurion Corporation Limited (CCL) released 3Q25 update with limited financials. 3Q25 revenue is within our expectations, and 9M25 revenue is 74% of our FY25e forecast. Singapore purpose-built worker accommodation (PBWA) remains the main growth driver as its 3Q25 revenue increased 10% YoY to S$49mn, driven by positive rental revisions that we estimate ~5% YoY, which we believe will moderate to ~2% in 2026e.
  • CCL announced several expansion pipelines over the next few years. Notably, it entered a fee-based management services contract to manage a 548-bed dormitory for another company on Jurong Island, starting from Nov 2025. We believe it is still immaterial but given Centurion’s track record in managing PBWAs, more of such contracts are likely to be won. The acquisition of Harum Megah in Sep 2025 also added 7.2k beds to CCL’s Malaysia PBWA (+25% capacity). CCL signed a letter of intent with Malaysian authorities in May 2025 to double its bed capacity in Johor in the next five years.
  • We lower our TP to S$1.81 (prev. S$2.01), before dividend-in-specie distribution, and upgrade our recommendation to BUY (prev. ACCUMULATE) due to recent share price movements. We lower our TP as we lower our SOTP valuations for most of the segments to 15x P/E (prev. 17x), an 8% discount to peers’ average, to reflect ongoing regulatory headwinds in Malaysia and Australia. Our FY26e revenue/PATMI is lowered by 3%/16% as rental revisions in Singapore PBWAs are expected to moderate in 2026. Our FY25e forecast is unchanged but now reflects the consolidated revenue/PATMI for CCL and Centurion Accommodation REIT (CENT REIT). CCL currently trades at a 4% discount to its NAV per share of S$1.44. We believe CCL will own ~37.5% stake in CENT REIT after distributing dividend-in-specie following the CCL 2026 AGM, which we estimate will yield shareholders ~7.5%.

 

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About the author

Profile photo of Yik Ban Chong (Ben)

Yik Ban Chong (Ben)
Research Analyst
PSR

Passionate in looking for new ways to use data to tell a story, I enjoy chatting about economics and connecting complex financial data to real-world outcomes. I look forward to conducting quality fundamental research and exchanging insights with you during our in-house seminars and presentations. I graduated from the National University of Singapore with a Bachelor of Engineering (Industrial and Systems Engineering), Honours.

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