Adrian Loh, an analyst from UOB Kay Hian, maintained the Buy rating on Centurion Corporation Limited (OU8 – Research Report). The associated price target is S$1.16.
Adrian Loh has given his Buy rating due to a combination of factors that highlight Centurion Corporation Limited’s strong financial performance and strategic positioning. The company reported a significant 45% increase in core net profit for 2024, driven by robust rental revisions and higher occupancy rates in both its Purpose Built Workers’ Accommodation (PBWA) and Purpose Built Students’ Accommodation (PBSA) segments. This growth was further supported by favorable supply-demand dynamics and a positive macroeconomic environment in Singapore, which enhanced the company’s pricing power during lease renewals.
Additionally, Centurion’s financial health is underscored by a strengthened balance sheet, with an 8% reduction in net debt and an improved net debt-to-equity ratio. The company’s long-term debt maturity profile remains manageable, and its interest coverage ratio has improved, indicating sound financial management. Furthermore, the dividend payout ratio has been maintained, providing a stable return to shareholders, which aligns with the company’s strong earnings performance and supports the Buy recommendation.
In another report released today, Phillip Securities also maintained a Buy rating on the stock with a S$1.22 price target.
OU8’s price has also changed dramatically for the past six months – from S$0.705 to S$1.080, which is a 53.19% increase.