In addition, private sector contracts have increased too, with trailing-twelve-month volume up 62% y-o-y in July.
"Based on its strong track record, we believe Soilbuild can secure additional contracts in the private sector in 4Q25," says Chong.
Chong sees upside potential from the company's precast segment. In the most recent 1HFY2025, revenue for this segment increased by 77% y-o-y and operating margins by 4.5 ppt y-o-y. He expects precast operating margins for the whole of FY2025 to increase by 2ppt y-o-y to 10.9%, as scale and efficiencies pick up.
Chong has kept his FY2025 revenue and earnings forecasts but has raised his valuation multiple to 7.5x FY2026 earnings, up from 5.9x previously, so as to be more in line with the 8.4x average of other construction firms.
See also: OCBC's Lee maintains $54 fair value on DBS
Soilbuild Construction Group shares closed at $2.73 on Sept 26, up 237.04% year to date.
