In FY2026, the analyst expects the group’s net profit after tax (NPAT) to come in 38% higher y-o-y to $47.2 million due to its master-leased Jalan Papan property, which provides stable recurring income, as well as its upcoming pipeline of developments.
The group has two leasehold strata industrial developments in Tampines and Tuas, which provides it with a pipeline of 561 industrial and 69 commercial units. The projects, which have a combined gross floor area (GFA) of 119,669 sqm (1.3 million sq ft), should grow Soon Hock’s FY2026 development revenue to $294 million, 27% up y-o-y.
Also in the works: the group’s freehold industrial assets at Senang Crescent and 20 Shaw Road, both of which are in planning stages.
“We expect these two assets to contribute an additional gross development value (GDV) of $295.6 million between FY2027 to FY2028,” says Toh.
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The analyst also likes the group’s clear capital return framework with a payout target of 25% for FY2025 to FY2026. The payout percentage implies an estimated dividend yield of 6.2% for FY2026. At its IPO, the group indicated that it would recommend and distribute dividends of at least 25% of its NPAT from its listing date to Dec 31, 2025, and for the year ending Dec 31.
Toh also highlights the group’s share buybacks, indicating confidence from management. Since November 2025, executive chairman and controlling shareholder, Tan Yeow Khoon, has purchased 7.8 million shares at an average price of 57 cents. The amount, which represents about 10.4% of the group’s free float, displayed “strong internal conviction and commitment to shareholder value creation”.
At this point, Toh sees further upside to Soon Hock’s share price with a 12-month price target of 75 cents, representing a 20% upside to the group’s last-closed share price of 63 cents as at Jan 13.
As at 2.27pm, shares in Soon Hock are trading flat at 63 cents, or 0.79% down year-to-date.
