Multi-year growth story intact

• Sanli said its joint venture (JV) with China Railway secured a maiden project with Singapore’s Land Transport Authority (LTA) valued at SGD281m. This is the largest contract secured to date and will significantly boost its orderbook to SGD614.9m, a record high. 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 SGD205m to its orderbook by end-2025 through the Public Utilities Board (PUB) tender it participated in July, which could boost its orderbook to SGD800m. We lift our FY26/27E PATMI estimates by 11% and 14.8%, respectively, resulting in a new TP of SGD0.50 based on 16x FY27E P/E. Maintain BUY.

•Diversifying to LTA based on M&E expertise

•Record orderbook may lead to record profitability

•Expect record revenues and earnings

Link to report : https://mkefactsettd.maybank-ke.com/FACTSETPARTNERS_TD_TRACK/external/download?q=29d910c257a3c682c6c906743802ea22448e10fb3v3EGqBpRabeir1JhED2c_bGymZOivfrj2sgJrCpUvqAthjdpKunN3nybEqcsvNQwA9JB1KkxQdvi9cmqI1g9tBjyvNe-PhEPatCRt_jzd_XihQU6z1T4KjcfvW1EcGJ_AZ6XMqCrkbrnvH91WwxxI8FM3_NRkX33gPuSBdzZYNj86wYynsHt2PQyI6C1-XBcSwsyGkdl51Ugi9wmYcxe-g%2C%2C