- Sanli Environmental (SGX:1E3)’s 1H26 revenue of S$72.1m and core PATMI of S$2.1m was slightly under our estimates.
GPM for EPC projects continues to recover
- - Read this at SGinvestors.io -
- We believe margins should continue to improve, especially at the net level when it starts to recognise these large contracts won recently.
Record orderbook may lead to record profitability
- With a record orderbook of S$781.5m, as well as tenders yet to be announced, such as its S$142.5m Tuas water reclamation plant C3B2 bid, Sanli’s orderbook could potentially surge to S$900+m by end-2025.
- We believe that the record orderbook implies record revenues and profits assuming no issues with execution. We believe Sanli is on the verge of a multi-year growth boom in FY26E–28E.
2H will be better with large project recognition
- - Read this at SGinvestors.io -
- 2H26E will likely be much better due to large contracts won recently which will be executed. With its record orderbook, this may eventually generate record revenues and profitability, barring any hiccups to execution.
Target price trimmed to S$0.50 – Maintain BUY
- Read more at SGinvestors.io.
