Overview

Sanli Environmental Limited (“Sanli”), a leading environmental engineering firm listed on the SGX since 2017, has released its latest investor presentation detailing its diversified growth strategy, robust financial performance, and expanding order book. Sanli operates across Singapore, Malaysia, Thailand, and Myanmar, and employs more than 800 staff. Its core focus areas include water and waste management (EPC and O&M), industrial gasification, chemical manufacturing, and renewable energy solutions.

Key Financial Highlights

• Revenue Growth: For the first half of FY2026, revenue reached S\$72.1 million, with FY2025 at S\$157.6 million. Gross profit for 1H2026 rose 16.7% to S\$9.3 million, while net profit soared 84.1% to S\$3.2 million, indicating strong margin expansion driven by higher-margin EPC projects.
• Order Book Milestone: The company’s order book hit a record S\$781.5 million as at 30 September 2025, following two significant contract wins:
  • Maiden LTA Project: Awarded in October 2025, valued at S\$281.0 million, the largest single contract secured by Sanli to date.
  • New PUB Project: Secured in November 2025, valued at S\$205.0 million.
• Dividend Commitment: Sanli has maintained a dividend payout of at least 30% of net profits attributable to owners, with a consistent dividend track record since IPO.

Business Segments and Growth Drivers

• Water & Waste Management (EPC & O&M):
  • Over 1,000 water and waste projects delivered.
  • Dual BCA L6 licenses for ME05 and ME11, enabling qualification for high-value government projects.
  • Key focus areas include Singapore’s Deep Tunnel Sewage System (DTSS), NEWater plants, upgrading aged infrastructure, and coastal protection projects. Singapore invests nearly S\$1 billion annually in water infrastructure, with S\$100 billion earmarked for climate change mitigation and shoreline protection.
  • Stable O&M revenue stream through long-term contracts with PUB, managing over 40 concurrent projects.
• Industrial & Gasification:
  • Emerging segment servicing alternative energy through gasification projects, led by ENVIRO Plant & Engineering and Zaison Energy.
  • Strategic partnerships to secure new EPC and O&M contracts in the region.
• Chemical Manufacturing:
  • Production of magnesium hydroxide slurry for industrial and marine applications.
  • First successful top-up for a major vessel completed, opening expansion opportunities with shipping clients.
  • Asia-Pacific market for magnesium hydroxide projected to grow from US\$1.2 billion (2023) to US\$2.1 billion (2032).
• Renewable Energy Solutions:
  • Sanli-Engreen Co., Ltd. secured 2.0MW of renewable energy projects in Thailand with >15-year PPA contracts, generating recurring revenue.
  • Thailand targets 12GW solar capacity by 2037, presenting a significant expansion opportunity.
  • First solar project (Mercure Koh Chang Hideaway) operational, with two more under construction.

Strategic Infrastructure Opportunities

• Multi-Year, Multi-Billion Projects in Singapore:
  • Deep Tunnel Sewage System (DTSS) – Changi Water Reclamation Plant Extension (S\$2 billion) and New Kranji Water Reclamation Plant (S\$6 billion).
  • Coastal Protection & Flood Control – First-mover advantage in polder projects aligned with S\$100 billion government initiatives.
  • Desalination & NEWater Plants – Ongoing opportunities as Singapore enhances water resilience.
  • Transport & Power Nexus – Participation in mega infrastructure like Cross Island Line (S\$40.7 billion) and Changi Airport Terminal 5 (S\$10 billion).

Dividend Track Record and Shareholder Value

• Sanli has paid consistent annual dividends since its IPO, maintaining a policy of at least 30% of net profits. The most recent years show dividends per share ranging from 0.196 to 0.768 Singapore cents.
• Commitment to rewarding shareholders is underscored by a history of stable payouts, even as profits fluctuate with project cycles.

Key Future Plans and Potential Price-Sensitive Information

• Significant New Contracts: The S\$281 million LTA contract and S\$205 million PUB contract are likely to positively impact future revenue and profit, potentially lifting Sanli’s share price as these represent the largest wins in company history.
• Pipeline of Large Projects: Several sizeable EPC tenders expected within the next 12 months, with S\$100 billion of coastal protection projects initiated in Singapore alone.
• Expansion in Renewable Energy: New recurring revenue streams from solar projects with long-term PPAs in Thailand, positioning Sanli for sustainable growth.
• Breakthrough in Chemical Manufacturing: Successful client acquisition in the marine sector (magnesium hydroxide slurry) is a strategic milestone for scaling up with new customers.
• Stable O&M Business: Defensive revenue stream with ongoing efforts to secure long-term maintenance contracts for water and wastewater facilities, ensuring business stability.

Summary

• Sanli is a direct proxy to Asia’s high-growth, defensive water industry, servicing blue-chip government clients.
• Strong order book and recent record contract wins provide robust visibility and diversification of future revenues.
• Clear roadmap for growth in water, waste management, industrial solutions, chemicals, and renewables.
• First-mover advantage in coastal protection and polder projects, tapping into government spending.
• Dividend policy and payout history continue to reward shareholders, making Sanli an attractive income stock.
• Highly experienced management team with proven execution capabilities in large-scale infrastructure.

Potential Share Price Movers

• Record S\$781.5 million order book with two major contracts secured in recent months.
• Strong profit growth in 1H2026 (net profit up 84.1%), margin improvement from higher-value EPC projects.
• Clear visibility on future revenues from long-term infrastructure programmes and renewable energy projects.
• Ongoing pipeline of mega tenders and expansion into new markets (Thailand solar, marine chemicals).
• Consistent dividend commitment and payout policy.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, solicitation, or an offer to buy or sell securities. Investors are advised to conduct their own independent research and consult professional advisers before making any investment decisions. The information herein is based on the latest corporate presentation from Sanli Environmental Limited and may include forward-looking statements subject to risks, uncertainties, and change without notice.

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