Centurion Corporation (OU8) H2 2023 earnings summary

Executive summary

• FY 2023 revenue rose 15% to S$207.3m; NPAT increased 131% to S$175.9m, supported by stronger accommodation operations and fair-value gains.

• Net profit after tax attributable to equity holders increased 114% to S$153.1m, including S$84.8m in net fair-value gains.

• Core net profit excluding fair-value adjustments grew 20% to S$76.3m; core business profit attributable to equity holders rose 21% to S$69.2m.

Financial highlights

• FY 2023 gross profit rose 21% to S$150.0m from S$123.6m; gross margin expanded to 72.4% from 68.5%.

• 2H 2023 revenue increased 22% to S$109.3m and gross profit rose 27% to S$79.6m.

• 2H 2023 net profit rose 224% to S$133.5m; net profit after tax attributable to equity holders increased 198% to S$114.8m.

• 2H 2023 core business profit attributable to equity holders rose 29% to S$36.2m; net profit margin was 37%, up 2pp YoY.

• Higher finance expenses partly offset stronger revenue and profit contributions from associated companies.

Outlook and guidance

• Positive supply-demand dynamics are expected to support healthy occupancy and rental revisions; UK AY 2024/25 pre-leasing and Australia bookings were healthy or on track.

• FY 2024 portfolio pipeline comprises ~4,310 beds; Westlite Ubi’s 1,650 beds are expected to complete in Dec 2024.

• Westlite Johor Tech Park and Westlite Senai II enhancements are expected to add 1,740 and 920 beds in 4Q2024; Westlite Pasir Gudang plans ~950 beds in 1Q2025.

• Growth strategy includes selective enhancements, acquisitions, capital recycling, asset-light growth and fee-based services; a ~7,000-bed PBWA development in Nusajaya is under evaluation.