As such, with the Ministry of Trade and Industry’s (MTI) lowering of its 2025 growth forecast to 0% to 2% amid escalating US-China trade tensions and Prime Minister Lawrence Wong’s warning of a ‘full-blown recession’, the analysts highlight that the group is well-positioned to capitalise on upcoming tenders in aerospace, data centre, and high-spec warehouse developments.
Notably, they see that Solidbuild's strategic win of the PSA Supply Chain Hub at Tuas contract has significantly raised its profile, positioning it as the only local builder among predominantly Japanese and Chinese players in the Tuas Port area.
“This marks a major step in gaining recognition from global multinational corporations and paves the way for a higher-quality deal flow ahead,” writes Chan and Liu.
Furthermore, the group’s precast business has returned to sustained profitability after years of underperformance.
With more HDB projects entering the market, Soilbuild’s management expects continued tender opportunities to sustain earnings.
On this, Chan and Liu write: “This marks a strategic turnaround, transforming the segment into a stable contributor to the group’s profit.”
In its FY2024, Soilbuild delivered a strong financial performance, with revenue climbing 58.4% y-o-y to $391.8 million, while gross profit more than doubled to $46.5 million, a 110% y-o-y increase.
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This was driven by improved margins across both construction and precast operations.
The group’s overall gross margin expanded from 8.9% in FY2023 to 11.9% in FY2024. As a result, net profit surged 263.3% y-o-y to $26.6 million.
With the Building and Construction Authority’s (BCA) projection of the annual construction demand to range between $39 billion and $46 billion from 2026 to 2029, the analysts see that Soilbuild’s positive outlook is driven by strong demand from both the public and private sectors.
Additionally, the group’s diversified capabilities and strategic focus on industrial and zero-energy developments further enhance its long-term competitiveness.
Potential challenges noted by Chan and Liu include competitive pressures in the construction sector, potential project delays, and material cost inflation.
They conclude: “However, its solid order book and strategic focus on sustainability mitigate these risks.”
As at 2.54 pm, shares in Soilbuild are trading flat at 81 cents.
