Centurion Corporation Limited provides purpose-built workers and student accommodation services. Centurion owns, develops, and manages quality and purpose-built workers accommodation assets. Centurion serves customers worldwide.
REIT listing exploration. Centurion is exploring a potential REIT structure comprising stabilized PBWA and PBSA assets in mature markets like Singapore, Malaysia, and the UK. This could unlock asset value, enhance capital recycling, and deliver stable income for shareholders via a potential dividend-in-specie.
Stronger than anticipated revenue growth. Total revenue rose 22% YoY to S$253.6 million, while net profit after tax surged 118% to S$382.6 million, driven by high financial occupancy and rental rate uplifts across all key markets.
Expanding global footprint. As of 31 December 2024, Centurion operated 69,929 beds across 37 assets with AUM of S$2.5 billion. It added 2,552 new beds and has 7,662 beds under development for 2025-2026, including a new PBSA in Macquarie Park, Australia.
2H24 results review. Revenue increased 18% YoY to S$129.2 million from S$109.3 million in 2H23, while gross profit grew 27% to S$101.5 million, underpinned by sustained high occupancy and positive rental revisions. Despite a slight dip in PBWA occupancy in Malaysia, attributable to short-term foreign worker caps, strong rental performance and high occupancy in key markets like Singapore, the UK, and Australia offset this temporary weakness. Centurion declared a final dividend of 3.5 Scents per share for FY24, representing a 28.6% increase from the 2.5 Scents distributed in FY23.
We have fundamental coverage with a BUY recommendation and a TP of S$1.38. Please read the full report here.
Market consensus
(Source: Bloomberg)
Sembcorp Industries Ltd (SCI SP): Risk off and rate cut expectations
Sembcorp Industries Ltd provides utilities and integrated services for industrial sites such as power, gas, steam, water, wastewater treatment and other on-site services. Sembcorp Industries serves industrial parks, business, commercial, and residential spaces.
Rotation to defensive sectors and rising rate cut expectations. Escalating global trade tensions, driven by the broad tariff policies of the US, will gradually reshape global supply chains. World economic growth, especially in Asia, is expected to slow down substantially in the near term. Amidst macro headwinds, the utility sector is expected to outperform others. Meanwhile, expectations of rate cut are reviving. Lower interest rates would benefit Sembcorp by reducing financing costs, enhancing project viability, and potentially boosting demand for its energy and urban solutions. In a nutshell, investors favour assets with stability and visibility moving forward.
Proposed acquisition. Sembcorp Industries plans to increase its stake in Senoko Energy from 30% to a maximum of 70%, expanding its role in Singapore’s energy sector. The acquisition agreement, signed with KPIC Netherlands, Kyuden International, and Japan Bank for International Cooperation (JBIC), involves purchasing up to a 57.1% stake in Lion Power, which owns 70% of Senoko. The deal, valued at up to S$144mn, will be funded through internal cash and/or external borrowings and is expected to close in 2Q25. The Energy Market Authority has approved the acquisition, with Sembcorp committing to measures that ensure fair market competition. The acquisition is projected to be earnings accretive but will not significantly impact net tangible assets per share for FY25. This strategic move strengthens Sembcorp’s position in Singapore’s energy market and supports its commitment to the energy transition. With a larger stake in Senoko, Sembcorp can enhance operational synergies and contribute more effectively to sustainable and reliable energy solutions, aligning with its long-term growth strategy.
Increased dividend payout. Sembcorp raised its dividend to S$0.23 per share, from its previous S$0.13 in FY23, reflecting a higher payout ratio, signaling confidence in sustained profitability. The company’s net profit before exceptional items remained above S$1bn for a second consecutive year. Sembcorp’s gas and related services segment saw a 10% decline in profit to S$727mn, impacted by a 34% drop in Singapore’s wholesale electricity prices. However, the company solidified its position as the leading power provider for data centers and acquired a 30% stake in Senoko Energy. Additionally, it fully exited coal-fired power assets with the divestment of its 49% stake in Chongqing Songzao. Sembcorp’s renewable energy portfolio grew to 13.1 GW in 2024, progressing toward its 2028 goal of 25 GW. The company remains focused on executing its 2024-2028 strategic plan to meet Asia’s evolving energy needs. With a stronger commitment to dividends and an expanding clean energy portfolio, the company is poised to capitalize on Asia’s transition to sustainable energy while maintaining financial stability.
FY24 financial results. Sembcorp Industries Ltd reported net profit of S$1,011mn for FY24, a 7% incline YoY, compared to S$942mn in FY23. Due to the Group’s strong performance, the Board of Directors approved a total dividend of S$0.23 per ordinary share for FY24, an increase from the S$0.13 distributed for FY23.
Market consensus
(Source: Bloomberg)
China Merchants Bank Co Ltd. (3968 HK): Expecting more stimulus to combat U.S. tariffs
China Merchants Bank Co Ltd is a China-based company mainly engaged in banking business. The Company operates three segments. The Wholesale Finance Business segment provides financial services to corporate clients, government agency clients, and interbank clients, including loan and deposit services, settlement and cash management services, trade finance and offshore business, investment banking services, borrowing, repurchase, asset custody services, and others. The Retail Finance Business segment provides financial services to individual customers, including loan and deposit services, bank card services, wealth management, private banking, and other services. The company also operates the Other Businesses segment.
Expecting additional Stimulus to Counter U.S. Tariffs. China’s top leadership convened on recently to discuss further stimulus measures in response to heightened U.S. tariffs, according to sources. The meeting reportedly centered on support for the housing sector, consumer spending, and technological innovation. Financial regulators and related agencies are also preparing measures to help stabilize financial markets. These potential further stimulus efforts are likely to benefit China Merchants Bank (CMB), given the alignment with its core business strengths. Increased loan demand, improved asset quality, and growth opportunities in emerging sectors could follow.
Stock Repurchase and Capital Support Initiatives. Chinese commercial banks have stepped up support for stock repurchase and share increase programs, with total credit commitments surpassing RMB 300bn. These efforts aim to help listed companies stabilize valuations and optimize capital structures, contributing to broader market stabilization. As of April 6, China Merchants Bank had initiated 288 such projects, totaling RMB 104.8bn. This initiative has supported loan growth and boosted interest income, while also reinforcing broader economic resilience.
FY24 earnings. Revenue fell marginally by 0.58% YoY to RMB337.1bn in FY24, compared to RMB339.1bn in FY23. Profit increased by 1.22% to RMB148.4bn in FY24, compared to RMB146.6bn in FY23. Basic earnings per share was RMB5.66 in FY24, compared to a basic earnings per share of RMB5.63 in FY23.
China Mobile Ltd is a company mainly engaged in the provision of communication and information services. The Company’s businesses include customer market business, home market business, business market business and new market business. The customer market business mainly provides fifth-generation mobile communication technology (5G) mobile services and brand differentiated service operations. The home market business mainly provides home wired broadband services, mobile housekeeping smart services and smart home value-added services. The business market business is engaged in the research and development and sales of cloud computers and Internet of Things card services. The new market business includes international business, equity investment, digital content and financial technology.
AI integration. Earlier this month, China Mobile, along with other major Chinese telecom companies, announced the integration of DeepSeek’s artificial intelligence (AI) models into their services and products. The move follows a broader trend among the country’s top tech firms, including Alibaba Group, Tencent Holdings and Baidu Inc, which have ramped up support for DeepSeek’s latest AI models on their respective platforms. While these telecom giants have been developing their own large language models (LLMs) over the past two years amid a global AI boom spurred by OpenAI, they primarily leverage DeepSeek’s models for cloud-based applications. China Mobile, in particular, has incorporated DeepSeek’s full suite of models—from DeepSeek-V1 to the latest DeepSeek-R1—into its computing platform. This enables businesses of all sizes to access the models, deploy application programming interfaces (APIs), and build new AI agents on its platform.
Growth in smart devices and 5G adoption. China’s mobile phone market experienced robust growth in 2024, with total shipments increasing by 8.7% to 314 million units. Notably, December 2024 saw a significant YoY surge of 22.1%, reaching 34.53 million units. 5G smartphones dominated the market, accounting for 88.1% of December shipments and 86.6% of total annual shipments. This trend is supported by China’s rapidly expanding 5G infrastructure, which now includes over 4.25 million 5G base stations and serves more than 1 billion 5G users. The rise in smart device adoption, particularly 5G-enabled phones, is expected to drive an expansion of China Mobile’s customer base, as more users seek high-speed connectivity and advanced mobile services.
Strategic cooperation agreement to deepen AI development. China Mobile recently announced a strategic cooperation agreement with Chengdu City to deepen collaboration across multiple sectors. Under this agreement, the two parties will enhance infrastructure development in AI, 5G-A, and next-generation networks, drive technological innovation and commercialization, and strengthen partnerships in areas such as supply chains, industrial investment, and intelligent hardware. They will also explore opportunities in smart cities, the data industry, 5G-powered industrial internet applications, and the low-altitude economy, fostering high-quality growth in Chengdu’s electronic information and audio-entertainment industries. This initiative is expected to further position China Mobile to capitalize on China’s expanding AI landscape.
9M24 earnings. Revenue rose by 2.0% YoY to RMB791.5bn in 9M24, compared to RMB775.6bn in 9M23. Profit attributable to equity shareholders was RMB110.9bn, up by 5.1% YoY from RMB105.5bn. Basic earnings per share was RMB5.18 in 9M24, compared to a basic earnings per share of RMB4.94 in 9M23.
Costco Wholesale Corporation is a membership warehouse club The Company sells all kinds of food, automotive supplies, toys, hardware, sporting goods, jewelry, electronics, apparel, health, and beauty aids, as well as other goods. Costco Wholesale serves customers worldwide.
Tariff implementation drives short-term demand for essential goods. As of April 10, the U.S. has imposed a 10% tariff on global imports and a 145% tariff on goods imported from China. In 2024, the total value of U.S. imports from China amounted to US$438.9 billion, with the majority being essential daily goods. Following the announcement of the tariff policy, panic buying emerged in the U.S., leading to a sharp increase in short-term demand for essential consumer products.
Sales maintained steady growth in March. For the retail month of March, comparable sales rose by 6.4% YoY, with the U.S. market growing 7.5%, Canada increasing by 4.1%, and other international markets up by 2.9%. E-commerce comparable sales surged by 16.2% during the quarter. Excluding the impacts of currency and fuel prices, total comparable sales grew by 9.1% YoY, with the U.S. still showing strong growth of 8.7%. For the five-week period ending April 6, total net sales rose 8.6% to US$25.51 billion.
Combining both defensive and growth attributes. Unlike traditional supermarkets that rely on low margins and high volume, Costco maintains ultra-low wholesale pricing and derives most of its profits from membership fees. Membership growth and fee increases are long-term growth drivers. As of December 2024, the number of paid household memberships reached 77.4 million, up around 8% YoY, with total cardholders reaching 138.8 million. The global membership renewal rate was 90.4%. Starting September 1, 2024, membership fees in the U.S. and Canada increased, basic membership rose from US$60 to US$65, and executive membership from US$120 to US$130. In South Korea, membership fees will increase by 7.5% to 15.2% in May 2025. The company currently operates 897 warehouses across 13 countries and plans to open 29 new locations in 2025, with 12 of them outside the U.S.
2Q25 results. Revenue increased by 9.0% YoY to US$63.72bn, exceeding expectations by US$640mn. GAAP earnings per share were US$4.02, missing expectations by US$0.09.
Market consensus
(Source: Bloomberg)
UnitedHealth Group Inc (UNH US): Favourable Medicare rate decision
UnitedHealth Group Incorporated owns and manages organized health systems. The Company provides employers products and resources to plan and administer employee benefit programs. UnitedHealth serves customers worldwide.
Favourable Medicare reimbursement outlook. The U.S. government’s decision to raise Medicare Advantage reimbursement rates by 5.06% for 2026, double the initially proposed increase, provides a significant tailwind for health insurers like UnitedHealth Group. This adjustment offers much-needed relief following a challenging 2024, helping to offset elevated medical costs and strengthening profit margins. The upward revision, based on updated claims and cost data, also signals a potentially more supportive regulatory environment for Medicare-focused insurers
Defensive strength of an essential service. As the largest U.S. provider of a critical, essential service, UnitedHealth Group benefits from stable demand across economic cycles. The necessity of healthcare, underpinned by the high cost of treatment and widespread employer-sponsored insurance, ensures a recurring revenue base through consistent premium payments. This defensive positioning makes UnitedHealth more resilient to macroeconomic headwinds, offering both income stability and long-term growth potential.
4Q25 results. Revenue increased by 6.8% YoY to US$100.8bn, missing expectations by US$930mn. Non-GAAP earnings per share were US$6.81, exceeding expectations by US$0.07. For FY25, the company expects revenue to be between US$450bn to US$455bn and adjusted EPS of US$29.5 to US$30.0.
