Industrial property company Soon Hock Enterprise is well-placed to capitalize on Singapore’s ongoing industrial infrastructure upgrades, according to UOB Kay Hian analyst Heidi Mo.

Singapore is undertaking major projects, including the Tuas mega port and Changi Airport’s fifth terminal, aimed at boosting the city-state’s industrial capabilities. Soon Hock’s projects are geographically aligned with the government’s industrial zoning roadmap, which the analyst notes could translate into resilient end-user demand and high tenant retention.

The company also boasts strong earnings visibility, backed by its S$1 billion project pipeline, expected to drive a compound annual earnings growth rate of 124% from 2024 to 2027.

UOB Kay Hian has initiated coverage on Soon Hock with a buy rating and a target price of S$0.68. The stock is currently trading flat at S$0.59.