Broker: CGS International
Date of Report: June 5, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Sanli Environmental Ltd (SANLI SP)
- Action: ADD (Buy)
- Target Price: S\$0.22 (25% upside from current price S\$0.176)
- Key Idea: Sanli’s FY3/26 results were below expectations due to project delays, but the company maintains a large order book of S\$748.1m for progressive completion through FY27-32. Despite a reduced target price (previously S\$0.33), the broker expects strong EPS growth (projected 136% for FY27F) as revenue recognition from new projects ramps up.
- Highlights:
- FY26 revenue S\$139.6m (-11.4% YoY), net profit S\$2.2m (+39.7% YoY), both below expectations.
- Order wins in FY26 demonstrate the ability to secure meaningful contracts; converting this backlog into earnings is key for re-rating.
- Key risks: Project execution, labour shortages, competition, margin compression, and access to funding.
- Valuation: 13x FY27F P/E, 1 s.d. above 5-year average due to expected strong EPS growth (57.3% CAGR CY25-28F).
- Implications: Investors should focus on Sanli’s ability to execute and deliver on its order book to drive future earnings and share price re-rating. Further order wins and margin expansion are key upside catalysts.
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
