Sanli’s new $205 million contract is for the development of Changi NEWater Factory 3, which is to be delivered over two years. With this latest contract win, Sanli’s orderbook has reached a new record of $838.7 million.
The analyst believes that with a record orderbook significantly higher than the previous record of around $300 million, as well as tenders yet to be announced, such as the upcoming $142 million Tuas Water reclamation plant bid, Sanli’s orderbook could potentially reach the $1 billion mark by the end of 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 spurt in FY2026 to FY2028,” says Seet.
In the longer term, Seet believes Sanli is well-positioned for sustained growth, driven by PUB water-related projects and anticipated Long Island tenders as part of Singapore’s climate change mitigation efforts.
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“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,” Seet adds.
With the latest contract win, Seet has lifted his FY2026 and FY2027 PATMI estimates by 5.2% and 10.1%, respectively, resulting in a 6% higher target price of 53 cents based on 16 times FY2027 P/E ratio.
