- Sanli Environmental (SGX:1E3) has been awarded a S$205m contract by PUB for the development of Changi NEWater Factory 3 over 2 years. This will boost its orderbook to a fresh record of S$838.7m.
- - Read this at SGinvestors.io -
S$205m PUB contract.
- Sanli’s new S$205m contract is for the development of Changi NEWater Factory 3. The duration of the project is 24 months which brings its orderbook to a new record high of S$838.7m.
- PUB contracts are bread and butter for Sanli and we believe execution and margins for this project should not be an issue and attractive, especially for its net margins.
Record orderbook may lead to record profitability.
- With a record orderbook significantly higher than its old record of S$300+m, as well as tenders yet to be announced, such as its S$142m Tuas Water reclamation plant bid, its orderbook could potentially surge to close to S$1bn by end-2025.
- - Read this at SGinvestors.io -
Expect record revenues and earnings.
- We think Sanli is well-positioned for sustained growth from FY26 to FY36, driven by PUB water-related projects and anticipated Long Island tenders as part of Singapore’s climate change mitigation efforts. Successfully securing a portion of these projects could establish a multi-year growth trajectory for Sanli.
- We believe securing these orders would elevate Sanli’s orderbook to fresh highs. This may eventually generate record revenues and profitability, barring any hiccups in execution.
Raise target price to S$0.53 from S$0.50.
- Read more at SGinvestors.io.
