“We view this as public sector validation of its capabilities and track record in the maintenance and equipment (M&E) space for large-scale projects. We also believe that Sanli has a good opportunity to add $205 million to its orderbook by the end of 2025 through the Public Utilities Board (PUB) tender it participated in July, which could boost its orderbook to $800 million,” says Seet.
Apart from the higher orderbook, Seet is confident that this maiden contract with LTA will open up a new revenue source for Sanli and is a testament to its M&E capabilities for large-scale projects.
The analyst believes that the record orderbook could translate to record revenue and profit for Sanli assuming that there are no issues with the execution, setting the stage for a multi-year growth boom from FY2026 to FY2028.
In the longer term, Seet thinks that 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.
See also: OCBC raises call on Nanofilm to 'buy' on valuation grounds
With the latest contract win, Seet has lifted his FY2026 and FY2027 PATMI estimates by 11% and 14.8%, respectively, which resulted in a new target price of 50 cents based on 16 times FY2027 P/E ratio.
As at 10.25 am, shares in Sanli Environmental are trading 0.5 cents higher, or 1.61% up at 31.5 cents.
