Broker Name: CGS International
Date of Report: October 14, 2025
Excerpt from CGS International report
Report Summary
- Soilbuild Construction Group (SBCG) is targeting an order book of around S\$1bn for FY26, with YTD order wins at S\$360m and strong tender momentum expected to continue into 2026.
- Key growth drivers include industrial construction, especially in semiconductor and advanced manufacturing, and precast construction, supported by Singapore’s Housing Development Board and JTC’s push for sustainable prefabricated solutions.
- SBCG faces limited competition in high-specification industrial projects, leveraging its track record in green building standards and in-house BIM capabilities, while maintaining disciplined cost management with upfront material locking and lump-sum subcontractor contracts.
- The company is expected to turn net cash positive in FY25 with strong earnings growth (116% yoy), enabling higher dividends, amid limited capex and no diversification plans.
- Valuation remains attractive with a target price of S\$4.21 (26.5% upside), based on 10x FY26F P/E, still at a discount to peers.
- SBCG aligns with Singapore’s sustainability agenda, emphasizing ESG practices in construction, strong workplace safety, and staff training to address industry skill shortages, with robust anti-corruption policies and no reported incidents.
Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com/sg/en/
