SAC Capital analysts Matthias Chan and Liu Maorong are maintaining their “buy” call on Soilbuild Construction (Soilbuild) at a revised target price (TP) of $1.10, noting that “pump priming” through Singapore’s construction sector is likely to be at the forefront as economic headwinds intensify.

Chan and Liu note that construction spending historically rises during downturns, particularly as seen in the mid-1990s and late 2000s.

As such, with the Ministry of Trade and Industry’s (MTI) lowering of its 2025 growth forecast to 0% to 2% amid escalating US-China trade tensions and Prime Minister Lawrence Wong’s warning of a ‘full-blown recession’, the analysts highlight that the group is well-positioned to capitalise on upcoming tenders in aerospace, data centre, and high-spec warehouse developments.