For one, the company’s margins are expected to rebound, especially in its engineering, procurement and construction (EPC) segment, as new contracts with higher margins begin in FY2026. In FY2024 and FY2025, Sanli’s margins were reduced due to the higher raw material and labour costs seen during Covid-19, Seet explains.
Maybank Securities analyst Jarick Seet has initiated a “buy” call on Sanli Environmental with a target price of 38 cents. Seet’s target price, which is based on a blended FY2026/FY2027 P/E of 15 times, represents an 81% upside from Sanli’s last-closed share price of 21 cents as at Aug 15.
In his Aug 18 report, Seet believes the locally-owned water treatment and maintenance provider is in a “sweet spot” due to several factors.
