Centurion Corporation Limited: Strong Growth Driven by PBWA Expansion and Favorable Industry Dynamics

CGS-CIMB analyst William Tng reiterated a Buy rating on Centurion Corporation Limited (OU8 – Research Report) on May 15 and set a price target of S$1.46.

William Tng has given his Buy rating due to a combination of factors that highlight Centurion Corporation Limited’s strong performance and future potential. The company’s revenue for the first quarter of 2025 showed a significant year-on-year increase, primarily driven by the Purpose-Built Worker Accommodation (PBWA) business in Singapore, which experienced a 15% growth. This growth is supported by high financial occupancies and positive rental reversions, indicating a robust demand for their services.
Furthermore, Centurion is poised to benefit from favorable industry dynamics and regulatory reforms aimed at improving migrant worker housing standards. The company has ambitious expansion plans, including the addition of thousands of beds in Singapore and Australia, which are expected to drive future growth. Additionally, the potential issuance of a REIT and the company’s capital recycling strategy are seen as catalysts for re-rating, enhancing its valuation. Despite some risks, such as increased financing costs and potential oversupply, the overall outlook remains positive, justifying the Buy recommendation.

Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of OU8 in relation to earlier this year.