PETALING JAYA: Skyworld Development Bhd
’s earnings appear to have reached an inflection point after a challenging financial year 2026 (FY26), with analysts expecting a gradual recovery from FY27 and a stronger rebound by FY28.
This is following several key projects progressing into more active billing stages and a new long-term growth strategy begins to take shape.
Analysts generally agree that FY26 represented a transitional year for the property developer, weighed down by softer margins, higher financing costs, elevated tax expenses and limited earnings contributions from newly launched projects.
However, TA Research noted that management views FY26 as the trough year, with earnings expected to recover from FY27 onwards, although the recovery is likely to be skewed towards the second half of FY26 as Curvo Residences has already been completed while the next major handover, Vesta Residences, is only expected in the fourth quarter of FY27.
“Management believes FY26 should mark the bottom, with recovery expected to be more visible from late FY27 and FY28 as Vesta, Pearlmont and other newer projects move into stronger billing stages,” the research house said.
The company’s earnings visibility is supported by RM1.1bil in unbilled sales and a pipeline of ongoing projects including Vesta Residences, SkyAman 1, SkyAwani PR1MA, SkyAwani 6 and Pearlmont.
An analyst told StarBiz that he believes the weaker FY26 performance is temporary, reflecting a gap between the completion of ongoing projects and earnings contributions from new launches.
“The FY27 is expected to be stronger, backed by higher billings and a solid pipeline of upcoming launches.
“Risks to our outlook include weaker property sales, delays in new project launches and higher building material costs,” he said.
BIMB Research said operational progress remains intact, with take-up rates improving across most developments and sales reaching RM1bil in FY26.
It has maintained a “buy” call with unchanged target price of 62 sen as it remained constructive on SkyWorld’s medium term outlook, supported by RM1.1bil unbilled sales and planned FY27 launches of more than RM2bil gross development value across Malaysia and Vietnam.
A key highlight from the analyst briefing was the unveiling of SkyWorld 2040, a 15-year roadmap aimed at transforming the group from a Malaysian urban property developer into one of the top 30 property developers in South-East Asia by 2040.
Under the first phase covering FY27 to FY31, SkyWorld is targeting RM12bil in launches, RM10bil in sales and RM1bil in cumulative profit after tax, while aiming for annual earnings growth exceeding 20% and an average return on equity above 15%.
The plan is anchored on three growth engines: maintaining a consistent launch pipeline, expanding into at least one additional South-East Asian market and introducing S-Housing, an affordable housing concept inspired by Singapore’s public housing model.
