Centurion

$Centurion(OU8.SG)

Centurion: Profit Shock or Buying Opportunity?

Centurion Corp (OU8) fell 5.9% to S$1.60 after H1 2026 net profit plunged 64% to S$26.5m. The headline looks alarming, but the decline is largely accounting-driven: fair-value losses widened to S$32.8m, including S$19.1m of stamp duties related to Centurion Accommodation REIT (CAREIT), while a S$4.2m loss from associates also weighed on earnings. Revenue, however, rose a strong 31% to S$184.9m. (The Business Times⁠)

Fundamentally, this is more resilient than the headline suggests. DBS forecasts FY2026 revenue of S$356m and earnings of S$97m, with a S$1.86 target price versus S$1.60 currently—about 16% upside. Valuation at 12.1x FY2026 P/E is reasonable, though earnings remain sensitive to property valuations. (DBS Singapore⁠)

Technically, S$1.53–1.50 is the key support zone; a break below could signal further downside. Conversely, reclaiming S$1.66–1.70 would improve momentum.

For CAREIT (8C8U) investors, the key point is that Centurion’s accounting loss does not automatically threaten CAREIT’s rental distributions. CAREIT’s 2026 forecast distributable income was S$113.7m, equivalent to 7.47% yield at IPO assumptions. (eServices⁠)

View: Hold, selectively buy the dip rather than trim aggressively. Income-focused investors should prioritise CAREIT’s cash-flow and DPU coverage, while OU8 investors can accumulate gradually below S$1.55, provided property valuations and leverage remain controlled.

Not financial advice.

The bond market is sending a different signal: April PPI hit 6% (a 3-year high), 30-year Treasury yields broke 5%, and Warsh was confirmed as Fed Chair.

With 30-year bond yields rising, can investing in long-term bonds offset inflation and the continued weakness of the US dollar?

Or should one seize the opportunity of the AI wave to further improve the asset allocation structure?

The market looks so strong but when you look deeper, it’s all on the surface. Only a few names are carrying the market and it’s quite easy to actually prop them up. I am staying defensive.

The market does look unstoppable isn’t it? It keeps going up and up. Think again coz that’s what the headlines want you to believe. Smart money needs lots of exit liquidity because that’s how inflated the market is! Do the smart thing. Stay safe!

Take profits on AI euphoria. Rotate to SG banks and REITs as real rates rise. Position SG-listed names for ESR and energy security tailwinds.

The ESR is still in the early discussion phrase, continue to seat on the sideline till there is a confirmation on the benefit. Do no jump into the bandwagon in such a hype up market!

With Warsh confirmation as the fed chair, the thesis that AI going to outpowrt inflation rate is here. The AI rally will continue for the year and wealth will be generated!

The memory chips is going off the racks, LITERALLY! This is a rotation of the usual big tech to these players instead. We are in a new regime and so get ready!

With 30Y yields above 5% and PPI still sticky, hard to go all-in on long-duration tech lah — keeping some powder dry for now and watching how the rate picture develops.