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"E-book" by AK

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Centurion Corporation's sky rocketing earnings.

Tuesday, August 8, 2017

I made quite a few new investments in the last six months to a year but, of these, the largest investment was in Centurion Corporation. 

I was attracted not just by their ability and willingness to pay meaningful dividends but also their clear and viable strategy for growth. 

With insiders eating their own pudding too, it was a vote of confidence which regular readers know I have always liked.

2Q 2017 was another stellar quarter.

72% rise in earnings is definitely nothing to scoff at.

However, what I am more impressed with is the gross profit margin which improved some 7% to 73% while gross profit improved 36%.

Much has been said about the increasingly difficult business environment with many more competitors sharing the Singapore foreign workers accommodation pie.

The stellar results tell me that Centurion's management are not only competent, they are also fast to move into a new growth area and they are masters in branding.

An interim dividend per share (DPS) of 1c has been declared and that makes me happy.

Although I had no idea that Centurion Corporation had plans to list in Hong Kong when I became an investor in February, if that should come to pass, we could see its share price going higher.

Of course, although less important to me than the investing for income angle, a higher share price would make me happy too.

Am I going to buy more now? 

You want to read related post #1.

Related posts:
1. Invest in Centurion Corporation.

2. Centurion Corporation to double.

See slides presentation: HERE.


Unknown said...

Hi Ak,

Based on current price, is it to late to enter now?

Unknown said...

Hi Ak,

Based on on the current price, is it too late to enter now?

AK71 said...

Hi Jay,

You have to ask yourself if you are comfortable with the higher asking price now. ;)

Kevin said...

Centurion Adds Premier Student Accommodation Asset At Yale University To U.S. Portfolio. :)~~~~~~~

Kevin said...

Hi Jay Huang,

The RSI is currently at 70. ;)

csky said...

Hi AK,

I was looking at Centurion and I got a bit worried that they are moving from workers' dormitories to overseas students' dormitories. I was not sure if this overseas student dormitories thing would work out for them since it is relatively new for them.

So I am wondering if you could share how you decided that their student dormitories would also do well like the workers' dormitories?

Thank you!

AK71 said...

Hi Kevin,

Thanks for the FA and TA updates. ;)

AK71 said...

Hi csky,

If they didn't do something to reduce their reliance on workers' accommodation in Singapore, I would be worried. There are too many copy cats in this space in Singapore and it got crowded.

I am lucky that I made what to me was a substantial investment in Centurion when its stock was down. Down but definitely not out. ;)

Kevin said...

Hi csky,

Centurion holds a total of 30% stake in the entire portfolio of USA's student housing at the moment and not 100%.
Student housing is also known to be defensive and higher yielding as compared to other classes of real estate at this moment. ;)

Most importantly, GIC and Mapletree are also in the game. :) :) :)

csky said...

Thanks AK.

I went back to your first post on Centurion to see if I can find clues on how you decide what is "down and not out".

So seems like you used a bit of TA for your entry point and FA based on a worst case projection of dividend yield of 3.95%.

So would it be correct that your sell point will likely happen if the EPS falls below 3.7cents causing your project dividend yield to be less than 3.95%? Or do you also use stop-loss to protect your initial entry point?

Thanks AK!

csky said...

Hmmm wow! Thanks for sharing, Kevin.

hmm.. the difficult thing is to determine if it's too expensive to enter Centurion now! :P

AK71 said...

Hi csky,

I used to do a lot more TA but not that much in the recent past. Grown lazier in my old age. -.-"

EPS is certainly an important consideration but there are always other factors to consider such as whether the reasons behind any decline is enduring?

If you refer to the significant reduction of my investment in SPH, you will get an idea. :)

Sizing my investment in SPH.

csky said...

Hi Ak,

Thank you! I think I get the drift!

AK71 said...

Hi csky,

Drifting? I hope you are in a sea worthy vessel. ;p

NMHRGY said...

There are 74M warrants outstanding, each warrant carries the right to buy one share at $0.50.

this is about 10% of number of shares issued, or potential dilution of existing shareholders..

buy above $0.50?

having said that, NAV is about $0.55/share

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