Seet highlighted that Sanli is actively bidding for several projects, including the $205 million PUB Changi NEWater Facility 3. The analyst predicts that tender results worth $300 million to $500 million to be announced by the end of November.
The analyst believes that Sanli has a strong likelihood of securing at least $200 million to $300 million of these orders, nearly doubling its current orderbook. Seet believes that such outcome would serve as a significant catalyst for Sanli’s growth trajectory.
Previously, elevated raw material and labour costs following Covid compressed Sanli’s FY2024 and FY2025 margins. Seet expects a recovery in margins particularly in the engineering, procurement, and construction segment, as new contracts with higher margins commence in FY2026.
Additionally, supported by a robust orderbook of $333 million, he projects revenue growth of 10 to 15% y-o-y for the next two years. Margins and profitability should have made a decent improvement in 1HFY2026.
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In the long term, Sanli is well-positioned for sustained growth, driven by PUB water-related projects and the anticipated tenders from the Long Island project. Successfully securing a portion of these projects could establish a multi- year growth trajectory for Sanli.
Seet believes securing these potential orders would elevate Sanli’s orderbook to a record new level. This would eventually also point to new record levels of revenue and profitability, barring any hiccups to execution.
As at 2.50pm, shares in Sanli Environmental are trading 2.5 cents higher, or 8.77% up at 31 cents.
