Centurion proves doubters wrong with 49% profit surge in Q3

Revenue also jumped 46% last quarter.

Naysayers need to move aside. Centurion posted a stunning 49% year-on-year profit surge in the third quarter, with its net profit climbing to $7.9m on the back of increased bed capacity and occupancy rate.

The group’s revenue also rose 46% to $20.9m, while gross profit margins improved to 69% from 58% due to higher rental rates from both its Singapore and Malaysia dormitories.

According to OSK DMG, oversupply worries were massively overhyped and Centurion is likely going to indulge in new investments in Malaysia and Singapore.

“We expect Centurion to continue to outperform and prove doubters wrong, and still feel that recent oversupply fears are overhyped. While we expect a massive supply of 100k new beds streaming into the market in the next two years, our channel checks and market research revealed that a total of 74k short-term dormitory beds would be deemed as expired (or unusable) in the next three years. Hence, we believe that the additional supply is to make up for the shortfall previously encountered as well to replace the expiring beds in short-term dormitories,” noted OSK DMG.