PETALING JAYA: Following early-stage construction challenges, property developer Skyworld Development Bhd
is laying the groundwork for a stronger financial year ending March 2027 (FY27), supported by rising take-up rates across ongoing projects, RM1.8bil worth of new launches and a clear expansion pipeline extending into Penang and Mont Kiara.
According to TA Research, sales acceleration, rising unbilled balances and improving construction progress support stronger earnings conversion for Skyworld going into the fourth quarter (4Q26) and FY27.
“Medium-term catalysts, including the prefabricated prefinished volumetric construction facility and Vietnam ventures will enhance scalability and margin sustainability,” added the research house.
Analysts said the group’s earnings trajectory in the longer term remains supported by Cassia Penang and X Premier Series high-end development in Mont Kiara, with estimated gross development values (GDVs) of RM1.3bil and RM1.3bil, respectively.
Following a routine housekeeping exercise on Skyworld’s developable landbank, Mercury Securities has lowered the target price (TP) from 58 sen to 57 sen.
The new TP was derived from a 68% discount of estimated revised net asset value or RNAV of RM1.81 per share.
The research house also highlighted that Skyworld offers an attractive forecast FY27 dividend yield of 4.9%, consistent with its 20% profit after tax and minority interest or Patami payout policy.
On that note, Mercury Securities reiterated a “buy” call on the stock, underpinned by the latter’s strong positioning in the affordable housing segment benefiting from resilient demand, supportive government policies and solid near-term earnings visibility.
In line with its resilient outlook, the property developer has shown operational progress and solid near-term visibility, reported at its results briefing for the first nine months of FY26.
Mercury Securities noted the commendable take-up rates across the group’s Curvo Residence and Vesta Residence.
Cumulatively, the group has successfully realised RM2.8bil in GDV, accounting for 61% of its RM4.6bil initial public offering commitment.
Curvo Residence’s take-up rate rose to 76%, with completion and handover expected in 4Q26, while Vesta Residence reached 90% take-up, supported by 36% construction progress, Mercury Securities noted.
SkyAman 1 Residences (launched in August 2025) concurrently achieved a 31% take-up rate, with progress still nascent, with sub-structure works being carried out.
Meanwhile, analysts also reiterated SkyWorld’s Vietnam ventures remain in the gestation phase, following the lapse of the 13D memorandum of understanding, an amended sales and purchase agreement for District 8, and ongoing negotiations for Sai Gon Thuan An Central.
