Soon Hock Enterprise (SHE) H1 2026 earnings summary

Executive summary

• 1H 2026 revenue rose 87.7-fold to S$142.583m and NPAT turned positive at S$19.317m from a S$1.427m loss, primarily following Stellar @ Tampines completion and handovers.

• Operating cash outflow was S$73.1m and cash fell to S$72.267m at 30 June 2026 from S$160.017m at year-end, mainly as payables and customer advances were settled.

• Current developments support revenue visibility through 2029; Skye @ Tuas sales launched in June 2026, with other projects progressing.

Financial highlights

• Revenue was S$142.583m versus S$1.608m; gross profit was S$44.627m versus S$0.591m, and profit before tax was S$23.581m versus a S$1.450m loss.

• Net profit was S$19.317m versus a S$1.427m loss; income tax expense was S$4.264m, mainly reflecting taxable Stellar @ Tampines sales.

• Selling and marketing expense was S$18.696m, including S$18.6m of Stellar @ Tampines commissions; administrative expense was S$2.903m.

• Finance costs fell 33.0% to S$0.235m as average borrowing rates declined to 2.36% from 4.0%; an investment-property divestment generated a S$0.400m gain.

Outlook and guidance

• Skye @ Tuas targets partial TOP in 4Q 2026/1Q 2027 and full TOP in 1H 2027, revised from the prior December 2026 partial-TOP estimate.

• Senang Crescent targets final TOP by end-2027; 20 Shaw Road targets partial TOP by end-2028 and final TOP in 1Q 2029, subject to approvals and construction progress.

• Priorities include joint ventures, income-generating assets and selective local land acquisitions; the 20 Shaw Road dormitory is expected to add recurring rental income.

• The outlook for Singapore industrial property was cautiously optimistic, with economic conditions, regulation and sustainability requirements under monitoring.