- We like Soon Hock (SGX:SHE) for its established strong track record in industrial property development and a healthy project pipeline that underpins near-to-medium term profitability. Our valuation places Soon Hock at 5.0x FY26E P/E and a 30% discount to RNAV.
Near-term profitability acceleration
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- Moreover, the Group’s master-leased Jalan Papan property provides a stable recurring income stream. Combined with its upcoming pipeline of developments, we believe this will accelerate FY26E NPAT by +38% y-o-y to S$47.2m, indicating strong profitability.
Healthy pipeline of projects
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- Furthermore, it also owns freehold industrial assets in Senang Crescent and 20 Shaw Road that is currently in its planning stages. We expect these two assets to contribute an additional GDV of S$295.7m between FY27E-FY28E.
Rising dividend yield and Chairman’s vote of confidence
- Read more at SGinvestors.io.
