More importantly, the existing lease of this property has been given a 25-year extension. Instead of expiring on Sept 2032, it will now last till Nov 2057.
Based on a valuation provided by Knight Frank, the property is now valued at $284 million as at Dec 31 2019, an increase of $70 million.
The company is listed on both Singapore and Hong Kong exchanges and under the latter’s rules, companies are to give heads-up if earnings is known to come in at higher than expected levels, instead of just giving profit warnings.
For 3QFY2019, the company reported a 19% y-o-y jump in earnings to $10.2 million, on the back of a 17% y-o-y increase in revenue to $33.1 million.
For the 9MFY2019, earnings increased by 2% y-o-t to $30.7 million. Revenue was up 10% y-o-y to $97.3 million.
CGS-CIMB on Jan 8 initiated coverage on the stock with a “buy” call and target price of 61 cents.
On Feb 18, Centurion Corp closed at 46 cents, unchanged year to date.
At this level, the share price is trading at 4.83 times earnings.
As at 30 Sept 2019, its net asset value was 60.54 cents per share.
