In his May 15 note, Tng, who has an "add" call on the counter, figures that Centurion Corp is now worth $1.46, up from his previous target price of $1.
For its 1QFY2025, Centurion reported overall revenue of $69 million, up 13% y-o-y, led by its so-called purpose-built workers' accomodation business segment.
This business in Malaysia bucked the overall trend though, with a 1% marginal dip in revenue to $5 million in the quarter.
"The group observed short-term headwinds stemming from the cap on foreign worker supply in Malaysia, which hindered employers from recruiting new workers," says Tng.
Re-rating catalysts include continued strong rental reversion and successful execution of its capital recycling strategy, says Tng.
Also, if and when the REIT spin-off takes place, Centurion Corp might consider effecting a dividend in species of the REIT units to its shareholders, he adds.
On the other hand, downside risks include a steeper increase in financing costs and lower bed capacity utilisation on increased supply.
Separately, analysts from Maybank Securities have kept their "buy" call and already bullish $1.46 target price.
"Despite ongoing tariff uncertainties, management expects minimal impact on business operations but will continue to monitor developments closely," state analysts Eric Ong and Jarick Seet in their May 16 note.
They also like Centurion for having laid out a clear pipeline of capacity expansion in Singapore, Malaysia and Australia for this year and next, as it tries to maintain a strategic balance between occupancy levels and rental rate growth going forward.
As at 4.30 pm, Centurion Corp shares changed hands at $1.32, up 4.76%.
