Centurion

Centurion: DBSV initiates Coverage with a Buy Call and $0.77 TP. House note that Centurion is a premier player in the foreign worker dormitory business, garnering c.11% market share with 18,000 beds in three dormitories in Singapore. The Group has also expanded into Malaysia since 2011, operating 11,000 beds as the first and only purpose-built dormitory operator in the country. It is a key beneficiary of demand/supply imbalance, and the enforcement to raise living standards of workers. Key growth drivers are continued rent increases (we assumed 5% p.a.), higher occupancy and 50% expansion in beds in Singapore from 2013 to 2015 and 120% in Malaysia by 2015.