Report Summary

• Soilbuild Construction Group (SBCG) is positioned for multi-year growth, driven by a record S\$1.19bn order book and strong demand in Singapore’s construction sector. Net profit is forecasted to more than double in FY25, with margins rebounding to multi-year highs as cost pressures ease.
• SBCG’s strategy leverages integrated construction and precast operations, focusing on high-value industrial and public housing projects aligned with government mandates for productivity and sustainability. The company is expected to maintain strong order win momentum and margin improvement, supporting higher dividends and possible index inclusion.
• Key risks include project delays, cost escalation, and market cyclicality, but SBCG’s financials show a turnaround with improving balance sheet, cash flow, and dividend payouts. The report initiates coverage with an ‘Add’ rating and a target price of S\$4.21, representing a significant upside.