Centurion

Centurion: Centurion announced that it has won an open tender for a 12,000-bed dormitory land plot, comprising a 99-year-lease land area of 12.6ha, in Juru, Penang, Malaysia from Penang Development Corporation for $8.1m. This further strengthens its foothold in Penang, with total 17,000-bed capacity expected in Penang alone by 2018. Despite a potential surge of 100k beds coming onto the market over the next few years, OSK DMG remains positive on Centurion as we believe it stands out among its listed peers in terms of cost structure, margins and experience in the dormitory business. House maintains BUY with TP of $0.89 (64.8% upside), and expects earnings from this addition to only come in partially from FY17 onwards.