Broker: CGS International
Date of Report: April 23, 2026
Excerpt from CGS International report.
Report Summary
- Stock: Sanli Environmental Ltd (Ticker: SANLI SP)
- Action: Add (Buy)
- Target Price: S\$0.33
- Current Price: S\$0.21
- Upside: 57.1%
- Key Idea: Margin pressure is expected to reduce profitability for Sanli Environmental due to higher legacy project costs and rising oil prices from geopolitical conflict. EPS forecasts for FY26-28 have been cut by 15.8%-27.9%. The stock is expected to de-rate to 1 standard deviation below its 5-year average P/E, reflecting lower profitability expectations.
- Highlights:
- Despite margin pressure, order book-driven EPS growth is robust, projected at 77% for FY27 even after earnings cuts.
- Main risks: government policy changes, competition, workforce shortages, project management issues, and funding constraints.
- Potential upside catalysts: higher order wins, margin expansion, and progress in magnesium hydroxide slurry business.
- Net gearing as of end-Sep 2025: 0.82x.
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
