Hiap Hoe Ltd. (5JK) AI Stock Analysis

• Market Cap: S$322.33M
• Dividend Yield: 0.46%
• Average Volume (3M): 16.61K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.03
• Revenue Growth: 21.91%
• EPS Growth: 82.03%
• Country: SG
• Employees: 340
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Real Estate - Services
• EPS (TTM): 0.05
• Shares Outstanding: 474,557,400
• 10 Day Avg. Volume: 17,750
• 30 Day Avg. Volume: 16,613
• PEG Ratio: 0.02
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 5.72
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: S$0.74 ▲(31.43% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is driven by a solid 2025 financial rebound and improved free cash flow, supported by attractive valuation (moderate P/E and very high dividend yield). Offsetting this are leverage around ~1.15x debt-to-equity, low operating cash flow coverage versus debt, and a history of cyclical/volatile results, while technicals are neutral with a longer-term uptrend but recent softness versus the 20-day average.

Positive Factors

2025 Financial Rebound

A meaningful profitability rebound in 2025 indicates the company can generate positive operating earnings when market conditions or project timing align. Sustained ability to return to EBIT-positive operations supports long-term viability of development pipelines and gives management scope to deleverage or reinvest.

Improved Free Cash Flow

Material free cash flow that closely tracks net income implies improved cash conversion and earnings quality. Strong FCF enhances capacity to service debt, fund development or distributions, and provides flexibility versus firms reliant solely on accrual profits or asset disposals.

Asset-backed Balance Sheet

Significant real-estate assets and stable equity provide collateral and optionality: management can monetize, refinance or revalue assets over time. Asset backing reduces downside risk relative to non-asset businesses and supports creditor confidence through property-secured lending.

Negative Factors

Elevated Leverage

Leverage around or above 1x limits financial flexibility and raises refinancing and interest-rate risk for a development-led business. In property cycles this magnifies earnings swings and constrains capacity to pursue new projects without raising equity or selling assets.

Weak OCF Coverage vs Debt

Very low operating cash flow coverage versus outstanding debt implies core business cash generation is insufficient to comfortably service liabilities. This increases dependence on asset sales, development completions or external financing to meet obligations, raising structural funding risk.

Cyclical/Volatile Results & Margin Comparability

A history of multi-year volatility and anomalies in reported gross profit undermine predictability of recurring earnings. For investors and lenders, inconsistent margins and episodic profits complicate forecasting and increase the chance that weaker cycles force asset disposals or equity raises.

Hiap Hoe Ltd. Business Overview & Revenue Model

Company Description

Hiap Hoe Limited, an investment holding company, engages in the development of portfolio of hospitality, retail, commercial, and residential assets in Australia, Singapore, and the United Kingdom. It operates through Development Properties, Rental, Leisure, and Hotel Operations segments. The Development Properties segment acquires land/property and develops them into residential, industrial, and commercial properties for sale. The Rental segment engages in the business of renting space under the investment properties, as well as plant and equipment. The Leisure segment provides leisure and recreational facilities, including bowling, billiard, and amusement centers under the SuperBowl brand. The Hotel Operations segment operates hotels under the brand names of Ramada Singapore, Days Hotel Singapore, Holiday Inn Express Trafford City, Four Points by Sheraton Melbourne, and Aloft Perth. The company trades in a portfolio of quoted and unquoted investments. It is also involved in the provision of civil engineering, general road construction, and sub-contractor works; and development of luxury and mid-tier residential, and hotel-cum-commercial properties. Hiap Hoe Limited was incorporated in 1994 and is headquartered in Singapore. Hiap Hoe Limited is a subsidiary of Hiap Hoe Holdings Pte Ltd.

How the Company Makes Money

Hiap Hoe Ltd. generates revenue primarily through the sale and leasing of residential and commercial properties. The company earns significant income from its property development projects, where it develops and sells residential units and commercial spaces. Additionally, it has a portfolio of investment properties that provide rental income. The company also engages in joint ventures and partnerships with other developers and investors, which helps to share risks and expand its market reach. Factors contributing to its earnings include the demand for real estate in Singapore, strategic project locations, and effective management of its property assets.

Hiap Hoe Ltd. Financial Statement Overview

Summary

2025 showed a notable rebound (net margin ~22.5%, EBIT positive, ~4.9% revenue growth) and stronger free cash flow (~46.1m, ~95% of net income). However, results have been cyclical with prior losses/weak years, leverage is elevated (debt-to-equity ~1.15x with higher debt in 2025), operating cash flow remains low versus debt (~0.18 coverage), and the 2025 gross profit reported as zero reduces confidence in margin comparability.

Income Statement

Profitability improved meaningfully in 2025 with net margin rising to ~22.5% (vs ~5.9% in 2024) and EBIT turning positive, alongside ~4.9% revenue growth. However, results have been volatile across the cycle (losses in 2020 and 2022, weak profits in 2023–2024), and gross profit is reported as zero in 2025 which reduces confidence in margin comparability year-to-year.

Balance Sheet

The balance sheet is asset-backed but leveraged: debt-to-equity is consistently a little above 1x (about 1.15x in 2025) and total debt increased in 2025. Equity is sizable and relatively stable, but returns on equity remain modest (~4.1% in 2025) after several years of low/negative levels, indicating limited efficiency and sensitivity to property/valuation and earnings swings.

Cash Flow

Cash generation strengthened in 2025 with free cash flow of ~46.1m and strong growth (~35.6%), and free cash flow closely matched net income (about 95%), suggesting improved earnings quality. Offsetting this, operating cash flow remains low relative to debt (coverage ~0.18 in 2025 and similarly low in prior years), and free cash flow has been uneven (very weak in 2024), pointing to variability and ongoing refinancing/interest-rate risk.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	128.64M	135.00M	111.89M	111.89M	119.40M	93.69M
Gross Profit	99.74M	0.00	40.28M	81.61M	116.10M	89.88M
EBITDA	37.81M	42.66M	87.91M	77.08M	31.09M	72.38M
Net Income	10.97M	30.37M	6.57M	5.56M	-22.00M	21.20M
Balance Sheet
Total Assets	1.58B	1.70B	1.59B	1.59B	1.57B	1.63B
Cash, Cash Equivalents and Short-Term Investments	475.63M	601.15M	468.16M	354.08M	347.17M	345.14M
Total Debt	768.37M	853.52M	768.30M	759.27M	743.99M	772.17M
Total Liabilities	863.21M	953.05M	871.94M	866.38M	848.31M	872.80M
Stockholders Equity	716.18M	744.02M	715.12M	719.74M	718.45M	752.51M
Cash Flow
Free Cash Flow	33.98M	46.08M	2.94M	5.59M	43.17M	28.32M
Operating Cash Flow	37.80M	48.26M	37.70M	30.30M	45.52M	29.66M
Investing Cash Flow	-2.99M	-47.28M	24.61M	-11.31M	17.36M	-29.32M
Financing Cash Flow	-37.08M	68.31M	-50.56M	-25.55M	-54.85M	3.93M

Hiap Hoe Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5JK, the sentiment is Neutral. The current price of 0.56 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.62, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 35.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:5JK.

Hiap Hoe Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
B61	73 Outperform	S$1.24B	8.16	6.39%	4.18%	-42.76%	-9.23%
5JK	65 Neutral	S$322.33M	8.68	1.53%	0.46%	21.91%	82.03%
O10	65 Neutral	S$598.95M	11.27	4.51%	3.17%	-2.21%	-20.80%
5IC	65 Neutral	S$276.69M	1.34	3.68%	2.20%	118.91%	50.78%
F1E	63 Neutral	S$576.28M	-15.94	-2.34%	2.05%	-39.12%	-326.51%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LJ3	47 Neutral	S$782.57M	-3.23	-4.81%	1.69%	-1.32%	-211.26%