Summary
The Group’s order book stood at S$741.8 million as of 31 March 2026 a compared to S$228.6 million at the end of FY25, providing significantly stronger revenue visibility for FY27 and FY28. The Group was awarded with multiple contract wins in FY2026, accumulating approximately S$590 million of new EPC contracts. The S$590 million includes a maiden LTA project with a contract value of S$281 million, and a new project by PUB with a contract value of S$205.0 million, demonstrating PUB’s continued trust in Sanli Environmental Ltd. Most recently, the Group was awarded new contracts across private and public sectors worth circa S$14.0 million, announced on 15 April 2026. The robust project pipeline reflects the Group’s strong foothold in the industry and provides an encouraging outlook for the next financial year. Continued delays in revenue recognition. The Group’s FY26 revenue of S$139.6 million came in below our expected forecast of S$170.5 million, primarily due to delays in revenue recognition. Despite the elevated orderbook, we have conservatively revised our FY27 revenue forecast up 11.4% to S$225.8 million from our previous published number. Our FY27 and FY28 forecasts have taken into consideration 1-year delays on the Group’s short-term projects, as Sanli looks to clear its backlog of current projects and break ground for its new projects. Due to extended project execution timelines and associated delayrelated costs, we lowered our expected gross margin for FY27 to 11.0% from 12.5%. Therefore, we adjust our FY27 net profit forecast down by 35.4% to S$5.3 million. Looking ahead, we expect project execution and delivery to improve in FY28 as new projects gain momentum. Accordingly, we forecast a modest recovery in gross margin to 11.5% in FY28. Dividends for FY2026 amounted to 0.189 Singapore cents per share, constituting 29.9% dividend payout ratio. This is consistent with the dividend payout of FY24 and FY25, with dividend payout ratios of 30.0% and 29.8% respectively. Following this, we forecast a dividend yield of 2.2% for FY2027.
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