Broker Name: Maybank Research Pte Ltd
Date of Report: January 13, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Soon Hock Enterprise (SHOCK SP) is a leading Singapore-based industrial real estate developer with a strong track record, ranking among the top five strata industrial developers in the country.
- The company’s profitability is set to accelerate, with a healthy pipeline including two major leasehold projects in Tampines and Tuas, and freehold assets in planning, supporting strong near- to medium-term earnings growth.
- Maybank initiates coverage with a BUY rating and a target price of SGD0.75, reflecting a 20% upside and valuing the company at 5.0x FY26E P/E, with a 30% discount to RNAV.
- Soon Hock’s user-centric development strategies and well-placed project locations have driven strong end-user demand and pre-sales momentum, with over 71% of their Stellar@Tampines project units pre-sold.
- The company is committed to shareholder returns, with a 25% payout target for FY25E–FY26E, implying a 6.2% FY26E dividend yield, and the Executive Chairman actively buying back shares, demonstrating confidence in the company’s outlook.
- Key risks include dependence on Singapore’s industrial property market, interest rate and debt financing volatility, and potential difficulties in collecting progress payments from purchasers.
- The group is well-positioned to benefit from Singapore’s robust industrial and logistics property market, supported by long-term trends such as advanced manufacturing, e-commerce growth, and limited supply of new strata-titled industrial projects.
- Financial forecasts anticipate NPAT to grow at a 3-year CAGR of 299% from FY24 to FY27, driven by revenue recognition from ongoing and upcoming projects.
- Management team is highly experienced and the company has a clear capital return policy, underpinning its commitment to shareholder value.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website: https://www.maybank.com/investment-banking
