In FY2025, Soon Hock's property development segment continues to be the key growth driver, contributing 98.6% of revenue in FY2025, up from just $6.5 million in FY2024 to $224.7 million in FY2025.
Toh expects the company's growth trajectory to continue in the current FY2026, as it will recognise revenue from another upcoming project, Skye@Tuas, slated for partial temporary occupation permit this coming December. Toh, in his Feb 25 note, estimates Skye@Tuas will contribute $47.2 million in net profit after tax.
In addition, Soon Hock plans to develop a worker’s dormitory at its 20 Shaw Road freehold property alongside a ramp-up strata food factory. This development has a targeted completion date of FY2028.
"Upon completion, the group expects the dormitory to contribute to its recurring rental income, strengthening its investment property segment," says Toh.
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He also notes that Soon Hock has delivered on its 25% dividend payout target commitment, with 3.05 cents to be paid for FY2025, which implies a yield of 5.6% for FY2025.
"We maintain 'buy', anticipating stronger topline growth from upcoming revenue recognition of its development properties," says Toh.
Soon Hock shares as at 11.02 am, was down 0.75% to 66 cents.
