Turning on the taps

•Sanli a pure local-owned water treatment and maintenance provider is in a sweet spot as we expect margins to rebound sharply as the majority of
its lower-margin projects (Covid era) have expired. We also expect its order-book to almost double from SGD333m to SGD500-600m by Dec’25
due to the pipeline for local water infrastructure projects supporting the national strategy to reduce reliance on imported water. We believe Sanli is on the verge of a multi-year growth trajectory. Our TP of SGD0.38 is
based on a 15x blended FY26/27E P/E. Risks to our BUY include client concentration risk, execution risks and volatile price stock movements.

•Margins to rebound leading to surge in profit

•Strong pipeline of projects – orderbook likely doubles

•Potential M&A target + high-margin new drivers

Link to report : https://mkefactsettd.maybank-ke.com/FACTSETPARTNERS_TD_TRACK/external/download?q=21da0ac9a4c4ef6a6718012a9bb38e185e8ce1af987FTgUOUA14j8aEgSUyOxtielk7ClF3uAl5wu1uRTp4iNRCj_qcBV_6ct6p8dP-Xeh9xdvrSFHujNFT535B1RtRdttq5Q5CBVyByY9jUoF1-7gqDPG2Ug2DO_2HnH8IuXaWkTK5xCEAhXsFAGWDSIuwg3gBlqFEu0uvNxZtls9LrA68nIttMSUIt6ziyzfdEqAxrwdE3kBJjWBsdQwKRMQ%2C%2C