PETALING JAYA: TA Research believes that Skyworld Development Bhd
is deeply undervalued, trading at just 6.6 times its calendar year 2026 price-to-earnings ratio compared to the sector’s average of 14.4 times.
In a report, TA Research said the steep discount is not justified in its view, given the developer’s strong fundamentals, disciplined balance sheet, and its position as one of the fastest-growing developers under its coverage.
“We initiate coverage with a ‘buy’ recommendation and a target price of 70 sen, implying a potential total return of 32%.
“Additionally, the stock offers investors defensive exposure to Malaysia’s affordable housing segment, underpinned by a robust land bank, disciplined launch strategy, and an expanding footprint in Penang,” it said.
According to the research house, SkyWorld has completed 12 projects with a gross development value (GDV) of RM5.3bil with two ongoing projects worth RM1.2bil.
At present, the developer is backed by a strategic landbank of 257.7 acres and a future GDV pipeline of RM20.1bil.
On top of that, to cater to different markets, the developer’s residential projects are set in three categories – affordable, mid-range and high-end.
This tiered product strategy enables SkyWorld to address multiple demand pools, from policy-backed affordable housing to discretionary mid-and high-end buyers, said TA Research.
