SkyWorld Development 1Q net profit jumps 84% to RM5.3m

PETALING JAYA (Aug 21): SkyWorld Development Bhd’s net profit attributable to shareholders rose 84.3% to RM5.26 million for the first quarter ended June 30, 2026 (1QFY2027), from RM2.85 million a year earlier, as the property developer recorded higher progressive revenue recognition from its ongoing projects.

Revenue increased 45.7% to RM108.67 million from RM74.60 million, while profit before tax (PBT) rose 68.3% to RM9.45 million from RM5.61 million, according to the group’s unaudited quarterly results filed with Bursa Malaysia on Friday (Aug 21).

Gross profit grew 17.1% to RM31.56 million from RM26.95 million. However, gross profit margin contracted to 29% from 36.1% a year earlier, which SkyWorld attributed to a revenue mix weighted towards lower-margin projects and an upward revision to Vesta Residences’ budgeted development cost in the preceding quarter.

Ongoing projects drive revenue

SkyWorld said the higher revenue was principally due to progressive revenue recognition from Vesta Residences, SkyAman 1 Residences, SkyAwani PRIMA Residences, SkyAwani 6 Residences and SkyAwani Pearlmont Residences Phase 1.

The five ongoing projects collectively contributed RM98 million in revenue during the quarter. The group also cited its completed Curvo Residences project among contributors to revenue from the property development segment for the period.

Sequential earnings decline

Against the immediately preceding quarter, revenue declined 17.8% from RM132.18 million in 4QFY2026, mainly because Curvo Residences had been completed in the preceding quarter, resulting in lower revenue recognition.

Gross profit fell 31.1% from RM45.83 million, while PBT dropped 50.8% from RM19.22 million. SkyWorld attributed the lower sequential PBT mainly to lower gross profit and higher finance costs.

More than RM2b in launches targeted

SkyWorld had RM1.1 billion in unbilled sales as at June 30, which it said would provide earnings visibility over the near-to-mid term.

The group is targeting new launches with aggregate estimated gross development value (GDV) exceeding RM2 billion in FY2027 across Malaysia and Vietnam, subject to prevailing market conditions.

Its regional expansion includes SkySOLIS in Ho Chi Minh City, which SkyWorld described as its maiden development outside Malaysia.

CEO Lee Chee Seng said the Vietnam venture marked an important milestone in the group’s regional expansion as it sought to bring its urban lifestyle development concept into selected growth markets.

Penang PPVC facility planned

SkyWorld is progressing with its prefabricated prefinished volumetric construction (PPVC) venture, with construction of its first manufacturing facility in Penang targeted for completion by the end of FY2027.

The group said the facility is expected to enhance construction efficiency, improve consistency in product quality and provide capacity to support future expansion.

As at June 30, SkyWorld had cash and bank balances of RM352.13 million. Its gross gearing ratio stood at 0.82 times and net gearing at 0.43 times.

The board said it remained cautiously optimistic that SkyWorld would deliver satisfactory financial and operational performance for FY2027, while remaining mindful of persistent macroeconomic uncertainties and rising operational costs.

No dividend was declared or recommended for the quarter.

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