• Maintain BUY with lower target price of S$0.88. We lower our target price to S$0.88, from S$1.15 previously. While Soilbuild's order book has fallen below management's own S$1 billion target, management is taking a disciplined approach to tendering rather than competing on price, and is seeing a pick-up in private-sector construction tenders compared to a year ago. Valuations are also not expensive, in our view. This implies 35.4% upside from Soilbuild's closing price of S$0.65 on 17 Aug 2026. At our target price, Soilbuild would trade at 9.7x 2026 P/E and offer a 4.1% 2026 dividend yield.

• Key Risks. Key risks include order book replenishment risk, contract concentration in the PSA Supply Chain Hub, precast execution risk tied to factors outside Soilbuild's control, legal and adjudication risk, uncertainty around the potential precast spin-off, and residual Myanmar exposure.

https://growbeansprout.com/soilbuild-construction-1h26-profit-dividend