Post-acquisition, Phillip Capital expects minimal impact on SkyWorld’s FY25 gearing.
PETALING JAYA: Skyworld Development Bhd
’s deal to co-develop a PR1MA Corp Malaysia project in Brickfields, Kuala Lumpur is expected to replenish its land bank by RM192mil, supporting sales and earnings from financial year 2027 (FY27) onwards.
The acquisition will replenish SkyWorld’s remaining land bank by 6% to RM3.7bil, said Phillip Capital Research.
The research house adjusted its FY27 earnings forecasts for the developer by 2% to factor in the earnings contribution from the project, but trimmed its FY26 earnings by 1% on higher interest expense.
It maintained a “hold’’ call on the stock with a target price of 56 sen a share.
Key risks to the call include faster-than-expected geographical expansion to Vietnam, lower-than-expected property sales, sluggish landbank replenishments and higher building material prices.
Post-acquisition, Phillip Capital expects minimal impact on SkyWorld’s FY25 gearing as the majority of the payments are scheduled in tranches after 18 to 48 months.
SkyWorld’s wholly owned subsidiary, Aspirasi Cekap, had recently entered into a joint development agreement with PR1MA to develop and construct affordable homes with all the amenities and infrastructure on two acres of leasehold land located in Brickfields.
The development cost of the project is estimated at RM32mil, with RM28mil being the land cost and RM4mil for the landowner’s guaranteed profit, which is payable 36 to 48 months after the execution of the joint agreement.
