Centurion

Centurion: JV with Lian Beng has won a land tender by Association of Process Industry to develop a 7,900-bed workers’ dorm and training center at Jalan Papan, close to Jurong Island. Total development cost is estimated at $200m, funded by a combination of bank loans and internal resources. Estimated to be completed in 2017, this will coincide with the expiry of the 8,600-bed Tuas dorm, mitigating the expected drop in earnings. This development will boost FY17 earnings by 4% and revenue by 25%. DBSV maintains Buy with lower TP of $0.85 from $0.91.