Broker: CGS International
Date of Report: January 15, 2026

Excerpt from CGS International report.

Report Summary

• Soilbuild Construction Group (SBCG) maintains a strong S\$1bn tender book with targets for a S\$1bn order book by end-2026, driven by projects in semiconductors, warehouses, Tuas Mega Port, and industrial developments.
• Despite a slowdown in 2H25 construction project awards due to rising costs and geopolitical concerns, order wins for FY25/FY26 are expected to be S\$530m/S\$450m, with upside potential if the key PSA Tuas Mega Port project completes ahead of schedule.
• Margins are expected to improve, with FY25F net cash position and a higher dividend payout ratio (35%) projected, leading to a raised target price of S\$1.20 (from S\$1.05) and a positive outlook on the stock due to strong order book, cash generation, and possible spin-off of its precast business.
• Key risks are potential cost overruns and slower project awards due to higher raw material prices, though existing projects are insulated by fixed-price subcontractor contracts.
• SBCG demonstrates strong ESG alignment with Singapore’s sustainability agenda, robust anti-corruption policies, and a focus on workplace safety and employee upskilling to mitigate typical construction sector risks.

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