“Soon Hock Enterprise is a Singapore pure-play strata industrial developer with a visible development pipeline of approximately $979 million in GDV (gross develompent value) extending to FY2029,” Ng writes in his April 20 report.
He adds that FY2025 marked a “decisive inflection” for the firm, with earnings up by 10.6 times to $37.9 million. Revenue in the same period surged by 27.9 times to $227.9 million.
Looking ahead, near-term catalysts include the launch of Skye@Tuas, the firm’s flagship project slated for 2Q2026. The nine-storey development will comprise 247 industrial and 62 commercial units, with a GDV of $354 million.
Ng says the project is structurally “well-positioned” given its location opposite Tuas Link MRT within Singapore’s fastest-growing logistics corridor and limited competing multi-user industrial supply in the area.
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Other catalysts include the renewal of the mixed-use workers’ dormitory and industrial property at Jalan Papan, which provides a source of recurring income.
Soon Hock’s growing freehold land bank including sites at 20 Shaw Road, Senang Crescent as well as the newly-acquired Kewalram House, provides further upside with the firm’s visible pipeline extended to FY2029 and beyond. This optionality, notes Ng, is not yet reflected in the current share price.
Following its temporary occupancy permit (TOP) for Stellar@Tampines in FY2025, Soon Hock ended the year with $160 million in cash, up from $18.6 million a year earlier. Net gearing also fell to 34.6% as at the end-FY2025. By FY2027, Soon Hock is expected to transition to net cash, making this an “unusual combination of financial strength and pipeline depth for a developer at this stage of its cycle”.
As at 11.53am, shares in Soon Hock are trading 1 cent higher or 1.58% up at 64.5 cents.
