14-11-2014, 08:59 PM
Wonderful! Hope they can prove the skeptics wrong. (vested and added a little more when price went down)
14-11-2014, 08:59 PM
Wonderful! Hope they can prove the skeptics wrong. (vested and added a little more when price went down)
17-11-2014, 09:48 PM
Centurion won open tender for land located at Juru, Penang, Malaysia
http://infopub.sgx.com/FileOpen/CCL%20-%...eID=325089
Time to roll!!!
17-11-2014, 10:58 PM
Foreign workers and students - both transient add-ons to a country's population; if CCL can develop this business idea, scale it up in those countries that have them in large numbers (usually the more developed ones) and operate at a cost structure that can sustainably increase retained earnings - I believe this could well be a winner in the long run and prove the skeptics wrong.
24-12-2014, 11:10 AM
(This post was last modified: 24-12-2014, 11:12 AM by CityFarmer.)
$92 per bed per month? It seems very low comparing with an TTJ estimated numbers.
TTJ's FY2013 revenue for dorm biz, was $15.1 mil, and with a capacity of 5300 beds. That translates to $230-240 per bed per month ($15.1 mil / 5300 / 12)... Centurion Corp price target cut to 83 cents but kept at "buy" by OSK-DMG SINGAPORE (Dec 24): OSK-DMG has reduced its price target for Centurion Corp ( Financial Dashboard) to 83 cents from 89 cents to reflect its belief that rental revisions are likely to be subdued in the next few years. Even so, it has kept its "buy" call on the stock, saying the builder of worker dormitory still has good growth prospects, especially with its latest tie-up with Lian Beng Group ( Financial Dashboard) to develop a 7,900-bed accommodation and training centre right outside Jurong Island. Through a joint venture 51% owned by Centurion, both companies will spend about $200 million in total on the development, which is slated to be completed by mid-2016. Calling the development a "great addition" to Centurion's portfolio, OSK-DMG analysts Jarick Seet and Terence Wong said each of the beds is expected to be rented out at $92 a month. "The latest addition with a low-cost base of an estimated $92 per bed a month will help to maintain Centurion’s strong margins and growth," they wrote in a note today. Centurion shares were flat at 51 cents at 10:01am (0201 GMT). http://www.theedgemarkets.com/sg/article...uy-osk-dmg
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Hi Cityfarmer,
Very sharp observation. In fact for FY 14, TTJ dormitory business is now $18 Million for its 5,300 bed. Thats about $283 per bed per month. So it seems either TTJ will have to lower its price or that the analysts are providing a very conservative figure for Lian Beng's dormitory.Do note the proximity of Lian Beng's proposed dorm is quite near TTJ's, so location is not a big factor to explain variance
24-12-2014, 03:47 PM
Could it be difference in persons per room? Lets say TTJ's rooms are for 2 persons, Centurion's are for 5 squeezed into 1 room? Just thinking out loud.
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".
24-12-2014, 04:28 PM
(24-12-2014, 02:51 PM)CY09 Wrote: Hi Cityfarmer, I think the cost-base is $92 a month. If any VB has access to the actual report it would be great to help clarify. I'm attaching an excerpt from an Osk-DMG report on centurion last month. "Maintain BUY, with a DCF-backed TP of SGD0.89. Its expansion plans in Singapore and Malaysia are on track, and it expects its Woodlands unit to be operational by 3Q15 and provide the next league of growth. Due to its aggressive expansion plans, we expect it to book strong NPAT growth of 34.8% in FY15 and 19.1% in FY16. Overall occupancy rates in Singapore and Malaysia remain above 95% and 90% respectively while rental rates averaged around SGD285 and MYR100 per bed per month. We remain bullish on Centurion." http://rhbosk.ap.bdvision.ipreo.com/NSig...9c0408de9d
24-12-2014, 05:43 PM
(24-12-2014, 04:28 PM)Muck Wrote:(24-12-2014, 02:51 PM)CY09 Wrote: Hi Cityfarmer, The $92 a month per bed should be the cost, as highlighted by Muck. It shows the good margin of the dorm biz...
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
25-12-2014, 11:34 AM
(24-12-2014, 11:10 AM)CityFarmer Wrote: $92 per bed per month? It seems very low comparing with an TTJ estimated numbers.when smrt link up with msia mrt...a lots of foreign talent will choose to stay in msia...think.per bed around.rmb $100....cost of living.also cheap......
25-12-2014, 04:21 PM
If I may throw my 2 cents worth into the hat, the current practice of foreign workers staying in dirt-cheap makeshift places won't last forever in a 1st world country like ours. Hence sooner or later, dormitories has to be the way to go. The question is whether Centurion has enough customer captivity, scale and cost efficiency to be a franchise in this business? Or even more fundamentally, is this market going to be always fragmented with a lot of small players, or would a big player like Centurion rise up to dominate this market? My own views as to whether this is going to be a significant future market - is yes. But whether the market will always be fragmented - I'm not so sure. But assuming that there is room in this market for a few big players to dominate, then I believe that Centurion has a very good chance to be among them. Any comments from VBs? (vested)
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