Broker: uSMART Research Institute
Date of Report: 20 April 2026
Excerpt from uSMART Research Institute report.
Report Summary
- Stock: Soon Hock Enterprise Holding Ltd (SHE.SI / SHOCK SP)
- Action: BUY (Initiation Coverage)
- Target Price: S\$0.72
- Current Price: S\$0.635 (as of 17 April 2026)
- 12-month Price Upside: +13.4%
- Total Return (including dividend): ~19% (FY26E dividend yield of 5.8%)
- Valuation: Residual Net Asset Value (RNAV) at a 30% discount to gross RNAV of S\$319.5m
- Key Idea: Soon Hock Enterprise is a pure-play strata industrial developer in Singapore with a visible pipeline of S\$979m in GDV through FY29. Its next growth driver is the launch of Skye@Tuas (S\$354m GDV, 313 units) in 2Q26, targeting a market window with limited competing supply. The company boasts a strong balance sheet post-FY25, with cash of S\$160m and net gearing reduced to 34.6%.
- Highlights:
- FY25 saw revenue surge to S\$227.9m and net profit rise to S\$37.9m, driven by Stellar@Tampines project completion.
- Upcoming projects (including Skye@Tuas, 20 Shaw Road, and Senang Crescent) provide earnings visibility to FY29 and beyond.
- SHE trades at 4.3x FY26E P/E and 1.0x FY26E book value, a discount to peers, with the market not pricing in its strong pipeline and financial position.
- Key risks: Delays or shortfalls in Skye@Tuas pre-sales or ASP at launch, Jalan Papan lease expiry in 2028, and market cyclicality.
- Call to Action: Initiate BUY on Soon Hock Enterprise Holding Ltd with a target price of S\$0.72, supported by a strong development pipeline, robust financials, and attractive valuation.
Above is an excerpt from a report by uSMART Research Institute. Clients of uSMART Research Institute can be the first to access the full report from the uSMART Singapore website: www.soonhock.com.sg
