Broker Name: CGS International
Date of Report: March 2, 2026
Excerpt from CGS International report.
- Report Summary
- Soilbuild Construction Group (SBCG) delivered FY25 core net profit of S\$62.4m (+135% yoy), in line with analyst estimates, on the back of strong project delivery and robust revenue growth.
- The group ended FY25 with a S\$1.07bn order book but expects a lower FY26 order book (~S\$860m) due to smaller contract sizes and softer order wins; FY26 order win assumption raised to S\$550m.
- EBIT margins for construction and precast segments improved to ~13% in 2H25, supported by disciplined execution and economies of scale.
- Management maintains stable gross profit margin (GPM) guidance at 16% for FY26-28, with net profit margin (NPM) expected at around 10%.
- Target price is unchanged at S\$1.20, pegged to 10x FY27F P/E, and “Add” rating is reiterated, citing strong order book, decent pipeline visibility, and resilient margins as strengths.
- Downside risks include potential for slower order wins and cost overruns, while key catalysts could be a precast business spin-off and stronger contract awards.
- SBCG aligns with Singapore’s sustainability agenda, emphasizing green construction, workplace safety, and robust anti-corruption measures.
- Financial metrics show robust growth in revenue, profit, and cash flow for FY25, with a positive outlook for earnings and dividends through FY28.
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
