Sanli Environmental Ltd, a Singapore-based environmental engineering group, is poised for significant growth, with an expected earnings per share (EPS) compound annual growth rate (CAGR) of 88.7% from FY25 to FY28. This projection is supported by a strong order book valued at $333.9m as of 15 July 2025, and the potential for further order wins totalling approximately $205m by the end of the calendar year 2025.
The company’s growth is underpinned by Singapore’s substantial investment in water management, with annual spending exceeding $1b from 2016 to 2023, according to the Public Utilities Board’s 2024 report. Sanli’s strategic focus on securing high-value contracts, such as the bid for the Changi NEWater Facility 3, positions it well to capitalise on these opportunities.
Sanli is also diversifying its revenue streams through the production of magnesium hydroxide slurry, a product used in environmental applications like wastewater treatment and marine scrubbers. This initiative is expected to yield a gross margin of approximately 40%, tapping into Singapore’s status as a major shipping hub.
Despite challenges such as potential policy changes and workforce shortages, Sanli’s established market presence and certification to bid for high-value contracts make it an attractive target for overseas conglomerates. The company’s strategy includes potential joint ventures to alleviate working capital pressures.
In conclusion, Sanli Environmental Ltd’s strategic initiatives and robust order pipeline suggest a promising trajectory for growth, with potential implications for increased market competitiveness and expansion into new business segments.
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