SKYWLD: Robust Sales and Project Pipeline Drive Strong Performance, Analyst Reaffirms ‘Buy’ Rating
| Investment Bank | TA SECURITIES |
|---|---|
| TP (Target Price) | RM0.76 (+68.8%) |
| Last Traded | RM0.45 |
| Recommendation |
A recent investment bank research report highlights a robust performance driven by accelerated sales momentum and strategic project launches. The report maintains a positive near-term outlook, underpinned by strong unbilled balances and improving construction progress, leading to a reiterated “Buy” recommendation and an unchanged target price.
Performance Review
The company recorded significant sales acceleration in 3QFY26, with quarterly sales rising sharply to RM577.7 million, bringing 9M-FY26 sales to RM904.6 million. The overall take-up rate stood impressively at 94.2% in 3QFY26. This strong performance was bolstered by the launch of nine new projects during the quarter, commanding an estimated gross development value (GDV) of RM1.94 billion. Management confirmed that year-to-date sales have already exceeded RM1.0 billion, aligning with the company’s FY26 targets.
This positive momentum also translated into enhanced financial performance. The company’s 3QFY26 earnings (HMM) improved by 28.6% quarter-on-quarter, with revenue increasing by 1.8x to RM360 million. This was primarily attributed to Block 3 achieving 80% sales, which facilitated the recognition of construction progress. While construction progress normalized across existing projects, revenue conversion from locked-in sales is expected to gain further pace.
Strategic Growth and Recurring Income
Strategic initiatives continue to advance, including the Prefabricated Prefinished Volumetric Construction (PPVC) facility in Seberang Perai Tengah. Development plan approval has been secured, with construction scheduled to commence in 4QFY26 and commercial operations by 3QFY27. Furthermore, the company is progressing with its Vietnam ventures, with land transactions for the District 8 site expected to complete by CY2026 for a CY2027 launch, and a potential CY2026 launch for Sai Gon Thuan An Central subject to acquisition conditions.
Recurring income streams also showed improvement during the quarter. Sama Square maintained near-full occupancy, and SkyBlox’s occupancy rate rose significantly to 91% from 82% in the previous quarter, indicating steady leasing traction and strengthening the company’s revenue base.
Future Outlook
The investment bank maintains its FY26-FY28 earnings forecasts, with new sales assumptions ranging from RM1.0-1.6 billion. The outlook remains positive, driven by sustained sales acceleration, rising unbilled balances, and improving construction progress, which are expected to support stronger earnings conversion into 4QFY26 and FY27. Medium-term catalysts, including the PPVC facility and the expanding Vietnam ventures, are anticipated to further enhance scalability and ensure margin sustainability.
Recommendation and Valuation
Given the strong operational performance and promising outlook, the investment bank reiterates its Buy call with an unchanged target price of RM0.76 per share. This valuation is based on 0.7x CY27 P/B, incorporating a +3% ESG premium, aligning with the company’s 4-star ESG rating.
