Soon Hock

$Soon Hock(SHE.SG)The company announced a dividend of S$0.0305 per share, with an ex-dividend date of 25 June. At that time, the share price was relatively low at around S$0.64, so I saw the combination of a low share price and upcoming dividend as an attractive opportunity.

Therefore,I decided to buy the shares at around S$0.64.

However, after my purchase, the share price dropped to around S$0.59 and did not recover to the S$0.64 level during the next two months.

After holding the position for about two months, I decided to liquidate my position at S$0.60 so that I could free up my capital for other trading opportunities.

This trade taught me an important lesson: I should not buy a stock simply because it offers an attractive dividend.

A dividend may look appealing, but it doesn't guarantee that the share price will perform well.

$Soon Hock(SHE.SG)profits are heavily influenced by the completion and recognition of property development projects.

That means a strong year does not necessarily mean earnings will continue at the same level. Once a major project is completed and revenue is recognised, earnings can fall sharply while the company waits for the next project to contribute.This makes company’s profit less predictable than companies with recurring revenue.

This stock is considerably smaller and less liquid than names such as DBS, UOB or SGX.This means a relatively small amount of selling can move the share price significantly.It may be harder to exit a large position quickly.

while the share price can remain weak even without major negative news.

After this buying experience, I have learnt that’ Dividend shouldn't be the main reason to buy stock’ Especially for a property developer company, dividends can fluctuate depending on project cash flows,Development expenditure,Working-capital requirements and Management's capital allocation decisions.So investors shouldn't assume today's dividend level will necessarily continue indefinitely.

Moving forward I would be more cautious when investing in small-cap property developer, because its earnings and share price can be much more volatile than established Singapore blue chips.

$Soon Hock(SHE.SG)Soon Hock's share price climbed from around S$0.56 after its IPO to a high of about S$0.655 earlier . Some investors may simply be locking in profits after the strong run.The stock went ex-dividend in late June 2026. On the ex-dividend date, a share price typically falls by approximately the dividend amount because new buyers are no longer entitled to receive that dividend.FY2025 earnings were boosted by revenue recognition from completed projects, particularly Stellar@Tampines. While the reported results were strong, investors are now focused on whether the company can sustain earnings growth from its next projects.Some analysts expect earnings to moderate over the next few years because property development earnings are project-based and can be uneven from year to year. This may have made some investors more cautious despite the company's healthy project pipeline.The next key catalyst will be the company's upcoming financial results and updates on the sales and construction progress of its development projects. Hopefully management can demonstrates that the earnings pipeline remains healthy, that could help improve investor sentiment.

Recent SGX filings show that Executive Chairman Tan Yeow Khoon and CEO Tan Min Loon disclosed increases in their interests in the company during June 2026. While insider buying does not guarantee future performance, it is often viewed as a sign of management's confidence in the business.Soon Hock is transitioning from a traditional operator into a more established industrial property developer, with a visible pipeline that could support earnings over the next few years. For investors comfortable with small-cap Singapore property stocks, it offers exposure to the industrial real estate sector with potential upside from project completions.

However, because its earnings are closely tied to the timing of development milestones, investors should expect more variability in financial results compared with larger, diversified developers or REITs. A key catalyst to watch will be the company's next earnings update and progress on its ongoing development projects.