Chong notes that Centurion has a strong upcoming asset pipeline in the current FY2025 and coming FY2026.
They include the 1,700-bed Westlite Toh Guan PBWA redevelopment by 4QFY2025; the 3,700-bed Westlite Mandai redevelopment by FY2026.
New developments include the 870-bed Westlite Johor Tech Park, slated by 4QFY2025; a 732-bed Sydney dorm for students by 4QFY2025 and the redevelopment of a 600-bed Melbourne dorm for students FY2026.
Separately, the company is potentially spinning off some of its assets into a REIT, following which, shareholders can enjoy a dividend in species.
See also: Brokers’ Digest: CSE Global, Geo Energy, Venture Corp, Prime US REIT
However, specific details are not yet finalised, says Chong.
Chong has applied a higher valuation multiple of 9.2x EV/ebitda, from 8x, to reflect the "visibility and strong asset pipeline expected" in the current FY2025 and coming FY2026.
As such, his target price for this counter, as indicated in his May 21 note, has increased from $1.22 to $1.45.
Centurion Corp shares changed hands at $1.33 as at 4.21 pm, down 0.75% thus far today but up 38.54% year to date.
