SINGAPORE (Nov 5): DBS Group Research is maintaining its &ldquo buy&rdquo call on Centurion Corp, the builder and operator of workers&rsquo and students&rsquo dorms, with a target price of 59 cents on &ldquo better things to come.&rdquo
In a Friday note, analyst Rachael Tan says &ldquo We believe that Centurion&rsquo s purpose-built dormitory business is scalable, particularly in economic areas which rely heavily on foreign-sourced workers. Given its success in executing its aggressive bed growth strategy so far, we are optimistic about the Group&rsquo s long-term potential.&rdquo

Centurion currently owns and operates close to 45,000 purpose built-foreign worker dormitory beds in Singapore and Malaysia, making it one of the largest purpose-built dormitory operators in the region.

&ldquo With an additional c.35k beds in the pipeline, we expect a 16% CAGR in bed count from 2015-2017,&rdquo says she.

The group also owns a portfolio of student dormitory assets in Singapore, Australia and the UK, totalling 2,800 beds.

&ldquo At its current price, Centurion is trading at 9x FY15F PE and 8x FY16F PE, which is attractive in our view,&rdquo concludes Tan.

Centurion is up 1.2% at 42.5 cents.

Source:  http://www.theedgemarkets.com/sg/article/centurion-kept-%E2%80%98buy%E2%80%99-dbs-higher-target-price-59-cents