SEHK:6090

Stock Analysis Report

Executive Summary

Centurion Corporation Limited, an investment holding company, owns, develops, and manages workers and students accommodation assets in Singapore, the United Kingdom, Malaysia, Australia, and internationally.


Snowflake Analysis

Second-rate dividend payer with acceptable track record.

Share Price & News

How has Centurion's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6090 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

6090

-4.9%

HK Real Estate

-3.2%

HK Market


1 Year Return

8.4%

6090

-9.7%

HK Real Estate

-10.2%

HK Market

Return vs Industry: 6090 exceeded the Hong Kong Real Estate industry which returned -9% over the past year.

Return vs Market: 6090 exceeded the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

6090IndustryMarket
7 Day2.4%-4.9%-3.2%
30 Day-5.5%-3.0%-3.3%
90 Day4.9%-1.4%0.2%
1 Year13.8%8.4%-5.7%-9.7%-6.9%-10.2%
3 Yearn/a36.7%22.0%11.7%0.4%
5 Yearn/a58.2%31.6%11.1%-7.3%

Price Volatility Vs. Market

How volatile is Centurion's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Centurion undervalued compared to its fair value and its price relative to the market?

4.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 6090 (HK$2.57) is trading above our estimate of fair value (HK$2.49)

Significantly Below Fair Value: 6090 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6090 is good value based on its PE Ratio (4.9x) compared to the Real Estate industry average (6.6x).

PE vs Market: 6090 is good value based on its PE Ratio (4.9x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 6090's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 6090 is overvalued based on its PB Ratio (0.8x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Centurion forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6090's earnings are forecast to decline over the next 3 years (-11.1% per year).

Earnings vs Market: 6090's earnings are forecast to decline over the next 3 years (-11.1% per year).

High Growth Earnings: 6090's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 6090's revenue (4.2% per year) is forecast to grow slower than the Hong Kong market (9.6% per year).

High Growth Revenue: 6090's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6090's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Centurion performed over the past 5 years?

-8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6090 has a large one-off gain of SGD48.5M impacting its September 30 2019 financial results.

Growing Profit Margin: 6090's current net profit margins (59.5%) are higher than last year (24.9%).


Past Earnings Growth Analysis

Earnings Trend: 6090's earnings have declined by -8.5% per year over the past 5 years.

Accelerating Growth: 6090's earnings growth over the past year (149.2%) exceeds its 5-year average (-8.5% per year).

Earnings vs Industry: 6090 earnings growth over the past year (149.2%) exceeded the Real Estate industry -8%.


Return on Equity

High ROE: 6090's Return on Equity (16%) is considered low.


Next Steps

Financial Health

How is Centurion's financial position?


Financial Position Analysis

Short Term Liabilities: 6090's short term assets (SGD85.7M) do not cover its short term liabilities (SGD112.3M).

Long Term Liabilities: 6090's short term assets (SGD85.7M) do not cover its long term liabilities (SGD734.2M).


Debt to Equity History and Analysis

Debt Level: 6090's debt to equity ratio (135%) is considered high.

Reducing Debt: 6090's debt to equity ratio has increased from 132.4% to 135% over the past 5 years.

Debt Coverage: 6090's debt is not well covered by operating cash flow (8.8%).

Interest Coverage: 6090's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: 6090 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6090's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Centurion's current dividend yield, its reliability and sustainability?

4.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6090's dividend (4.3%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 6090's dividend (4.3%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6090 has been paying a dividend for less than 10 years.

Growing Dividend: 6090's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21%), 6090's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 6090's dividends in 3 years are forecast to be covered by earnings (50.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Chee Min Kong (54yo)

8.5yrs

Tenure

Mr. Chee Min Kong has been the Chief Executive Officer of Centurion Corporation Limited (formerly, SM Summit Holdings Limited) since August 1, 2011. Mr. Kong served as the Group Finance Director of TES-Env ...


Leadership Team

NamePositionTenureCompensationOwnership
Kok Hoe Wong
Deputy Chairman of Board0.3yrsS$72.00kno data
Peng Kwang Teo
Chief Operating Officer of Accommodation Business & Executive Director1.8yrsS$806.00k7.58% SGD165.2m
Chee Min Kong
Chief Executive Officer8.5yrsno data0.021% SGD448.1k
Ai Huey Foo
Chief Financial Officer8.5yrsno datano data
Geok Ing Lee
Human Resources & Administration Manager25.1yrsno datano data
Ser Wee Oh
Investor Relations Manager0yrsno datano data
Siew Fatt Leong
Head of Student Accommodation Business0yrsno datano data
Lip Chin Ho
Chief Investment Officer of Accommodation Business5.1yrsno datano data
Luang Chew Chia
Company Secretary5.1yrsno datano data
Beng Hwee Tan
Company Secretary3.1yrsno datano data

6.8yrs

Average Tenure

54yo

Average Age

Experienced Management: 6090's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kok Hoe Wong
Deputy Chairman of Board0.3yrsS$72.00kno data
Peng Kwang Teo
Chief Operating Officer of Accommodation Business & Executive Director1.8yrsS$806.00k7.58% SGD165.2m
Hiang Meng Gn
Lead Independent Director5.9yrsS$101.00k0.029% SGD641.7k
Chandra Mohan
Independent Non-Executive Director12.8yrsS$80.00kno data
Seng Juan Han
Joint Chairman of the Board0.3yrsS$42.00k4.48% SGD97.7m
Kim Kang Loh
Joint Chairman of the Board0.3yrsS$42.00k4.01% SGD87.5m
Poh Hong Tan
Independent Non-Executive Director1.8yrsS$40.00kno data
Kek Hean Owi
Independent Non-Executive Director3.1yrsS$73.00kno data
Wei Loon Lee
Independent Non-Executive Director0.3yrsno datano data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Board: 6090's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 6090 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Centurion Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centurion Corporation Limited
  • Ticker: 6090
  • Exchange: SEHK
  • Founded: 1981
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: S$390.962m
  • Listing Market Cap: S$2.180b
  • Shares outstanding: 840.78m
  • Website: https://www.centurioncorp.com.sg

Number of Employees


Location

  • Centurion Corporation Limited
  • 45 Ubi Road 1
  • No. 05-01
  • Singapore
  • 408696
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OU8SGX (Singapore Exchange)YesOrdinary SharesSGSGDAug 2011
6090SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDAug 2011

Biography

Centurion Corporation Limited, an investment holding company, owns, develops, and manages workers and students accommodation assets in Singapore, the United Kingdom, Malaysia, Australia, and internationally. The company operates through three segments: Workers Accommodation, Student Accommodation, and Others. It offers dormitory accommodation and services for workers; and accommodation and services for students. As of September 30, 2019, the company owned and managed a portfolio of 32 operational accommodation assets totaling 64,956 beds. It also manufactures and sells optical discs and related data storage products. In addition, the company offers laundry and dry cleaning; management; utilities and transportation; fund management; trustee; and business and management consultancy services. Further, it is involved in property investment activates. The company was founded in 1981 and is headquartered in Singapore. Centurion Corporation Limited is a subsidiary of Centurion Properties Pte Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:41
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.