Centurion

Centurion: good 1Q13 showing. Revenue at $16m, +23% yoy, attributable to the expansion and growth in the Accomodation Business, which registered a turnover of $11.1m. The segment recorded continual quarterly growth, driven by rising occupancy levels in existing assets and contributions from newly acquired assets. As overall operating expenses broadly remained flat yoy, operating leverage helped boost net profit by 89% yoy to $2.2m. Mgt expects the Accomodation Business to benefit from the strong demand for quality worker’s accommodation in Singapore, which is expected to remain robust in the medium term. With an aggregate capacity of about 14,000 beds in Westlite Toh Guan and Westlite Tuas, the Group continues to maintain high occupancy levels at these properties. Separately, Centurion’s 3rd workers accommodation asset in Singapore, Westlite Mandai (45% JV with Lian Beng), has commenced operations with 4,750 beds in Apr 2013, which should provide another leg up for revenue growth. Westlite Mandai secured rental contracts and committed bookings for 50% of its capacity within its first month of operations. It is expected to receive further booking commitments which will fill up close to 70% of its available capacity by next quarter. Phase 2 of the devt is expected to be completed in 4Q13, which will boost Westlite Mandai’s total capacity to 6,290 beds. The factory units at Mandai are also expected to receive TOP towards the end of FY2013, which may provide a further boost to earnings as the project revenue is recognized. In Malaysia, the Group expects its four operational accommodation assets (combined 8,860 bed) in Johor to experience steady growth in occupancy levels, which will contribute positively to profitability in FY13. At the last close at $0.275, Centurion trades at 1.05x P/NRAV, 1.9x P/B, 23.7x annualized 1Q13 P/E.