Broker: Maybank Research Pte Ltd
Date of Report: October 17, 2025
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Sanli Environmental is expected to nearly double its order book from SGD333m to as much as SGD600-800m by November 2025, driven by imminent new contract wins, particularly in Singapore’s water and environmental sectors.
- The company is forecasted to achieve record revenue and profitability from FY26 onwards as margins recover, supported by a robust pipeline of government projects, recurring O&M contracts, and expansion into emerging green business segments.
- Sanli is well-positioned for multi-year growth on the back of Singapore’s environmental capex cycle, with upside catalysts including further contract wins, margin rebound, and potential takeover interest, but faces risks from aggressive bidding, project execution, and rising costs.
- The report maintains a BUY rating with a 12-month price target of SGD0.38 (+33%), highlighting the current market weakness as a buying opportunity for investors.
- Key financial projections include revenue growth of 10–15% YoY over the next two years, a rebound in gross and net margins from FY26, and a significant improvement in free cash flow and gearing ratios.
- Sanli demonstrates strong ESG integration with a focus on sustainability, governance, and social responsibility, although areas for improvement include setting absolute GHG targets and enhancing board diversity.
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 : https://www.maybank-keresearch.com
