Soon Hock Enterprise Holding Limited: Maiden Full-Year Results Analysis FY2025

Soon Hock Enterprise Holding Limited, a newly listed real estate developer specializing in industrial property development and investment in Singapore, has released its inaugural results for the financial year ended December 31, 2025. The company debuted on the Mainboard of the Singapore Exchange on October 16, 2025, and has delivered a standout performance driven by its property development segment.

Key Financial Metrics and Year-on-Year Comparison

Historical Performance Trends & Exceptional Earnings

The company’s results show an extraordinary YoY increase in both revenue and profit, largely attributed to revenue recognition from the partial Temporary Occupation Permit (TOP) for Stellar@Tampines in December 2025. The property development segment contributed S\$224.7m in revenue, up 33.5 times from the prior year. The property investment segment also grew significantly, supported by new lease income from the Jalan Papan investment property and ongoing leases from other properties. There were no comparable completed projects in FY2024, underscoring the outsized impact of the Stellar@Tampines milestone.

Gross profit margin declined to 32.6%, reflecting a shift in revenue mix and the absence of the one-off sale of a heavy vehicle park in FY2024, which carried a higher margin. The Group also incurred higher expenses, including sales commissions, listing costs (partially offset by a S\$1.0m grant), increased staff costs, and higher finance costs relating to land and construction loans. These expenses were more than offset by the revenue surge, resulting in a 10.6 times increase in NPAT.

Balance Sheet Strength

Soon Hock Enterprise’s balance sheet improved markedly in FY2025, with cash and cash equivalents rising to S\$160.0m (from S\$18.6m), primarily due to sales collections from Stellar@Tampines. Net assets increased to S\$156.8m (from S\$36.8m), positioning the group well to fund ongoing developments and pursue growth opportunities.

Dividend

The company has proposed a final tax-exempt dividend of 3.05 Singapore cents per share, representing 25% of NPAT, in line with its stated intention at IPO. There was no dividend in the prior year, as the company was not yet listed.

Chairman’s Statement

“We are pleased to deliver a strong set of maiden results to all our shareholders who believed in us and invested in us at our Initial Public Offering (“IPO”). Our FY2025 performance was largely driven by Stellar@Tampines, which will continue to contribute to our topline in FY2026.”

The tone is clearly positive, reflecting confidence in ongoing project contributions and future growth.

IPO, Divestments, and Asset Sales

• The company was listed on the Mainboard of SGX in October 2025.
• There was a full divestment of the property at 13 Tuas South Street 6 in July 2025.

Forecasted Events and Business Outlook

The Group will continue to focus on multi-strata industrial property development and recurring rental income from investment properties. The Singapore industrial property market is expected to remain resilient, supported by steady demand from SMEs, and developments with strong connectivity and strategic locations will be prioritized. The Skye@Tuas development, adjacent to major transport infrastructure, is expected to obtain partial TOP in December 2026, enabling further revenue recognition. The Group also plans to develop a worker dormitory at 20 Shaw Road, targeting completion in FY2028.

Management notes the operating environment remains challenging, with elevated construction and labor costs, competitive pricing pressures, and potential interest rate fluctuations. They are committed to prudent cost control, disciplined project execution, and enhancing recurring income streams.

Conclusion and Recommendation

Overall, Soon Hock Enterprise’s financial performance is exceptionally strong, highlighted by explosive revenue and profit growth, robust balance sheet improvements, and a substantial proposed dividend. The outlook remains positive, with ongoing and upcoming projects poised to contribute further to topline growth. However, investors should be mindful of high construction costs, competitive pressures, and interest rate risks.

Investor Recommendations

• For current holders: The company’s stellar performance, strong balance sheet, and positive outlook suggest holding the stock to benefit from ongoing and future project contributions, as well as dividend payouts.
• For non-holders: The exceptional maiden results and resilient industrial property market outlook make Soon Hock Enterprise an attractive candidate for portfolio inclusion, especially for those seeking exposure to Singapore’s industrial real estate sector.

Disclaimer: This analysis is based strictly on information disclosed in the company’s financial report. Investors should conduct their own due diligence and consider individual risk profiles before making investment decisions. Past performance is not indicative of future results.

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