Broker Name: Maybank Research Pte Ltd
Date of Report: November 16, 2025
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Sanli Environmental delivered 1H26 results slightly below expectations, with revenue of SGD72.1m and core PATMI of SGD2.1m. Margins are recovering, with EPC gross margin rising to 19% from 12.7% a year ago.
- The company holds a record orderbook of SGD781.5m, with potential to exceed SGD900m by end-2025 if new tenders are secured, paving the way for multi-year growth and possible record profitability from FY26 to FY28.
- Despite trimming FY26/27 earnings estimates and target price (now SGD0.50), Maybank maintains a BUY rating, citing confidence in Sanli’s execution and robust project pipeline, especially from Singapore government water projects.
- Sanli’s business is ESG-aligned, focused on water and waste management, with diversification into solar and waste-to-energy projects. The company practices strong governance, prioritizes employee safety and development, and is expanding in green business segments.
- Key risks include execution on large projects, margin pressure from competitive bidding and rising costs, and the need for substantial working capital. Upside drivers are new contract wins, margin recovery, dividend increases, and potential as a takeover target.
- Financials highlight a strong rebound in profits expected from FY26 onward, with improving margins, healthy balance sheet, and rising free cash flow after legacy project costs subside.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website : www.maybank.com/investment-banking
