In FY2025, Soon Hock's property development segment continues to be the key growth driver, contributing 98.6% of revenue in FY2025, up from just $6.5 million in FY2024 to $224.7 million in FY2025.
Toh expects the company's growth trajectory to continue in the current FY2026, as it will recognise revenue from another upcoming project, Skye@Tuas, slated for partial temporary occupation permit this coming December. Toh, in his Feb 25 note, estimates Skye@Tuas will contribute $47.2 million in net profit after tax.
In addition, Soon Hock plans to develop a worker’s dormitory at its 20 Shaw Road freehold property alongside a ramp-up strata food factory. This development has a targeted completion date of FY2028.
"Upon completion, the group expects the dormitory to contribute to its recurring rental income, strengthening its investment property segment," says Toh.
He also notes that Soon Hock has delivered on its 25% dividend payout target commitment, with 3.05 cents to be paid for FY2025, which implies a yield of 5.6% for FY2025.
"We maintain 'buy', anticipating stronger topline growth from upcoming revenue recognition of its development properties," says Toh.
Soon Hock shares as at 11.02 am, was down 0.75% to 66 cents.
