SkyWorld

SKYWORLD Development Bhd is planning a total of RM2.2b GDV launches in FY26F with at least five new developments on track to be launched. Prefabricated and pre-finished volumetric construction (PPVC) plant joint venture on track to support Penang projects, targeting to shorten delivery timelines and improve internal rate of return, with contributions expected from FY28F. After the land deal in Ho Chi Minh City fell through, the group is currently renegotiating the deal structure to align with updated local regulations. We have raised our core net profit higher by 8.4%/11.3% to RM55.8m/RM67.4m for FY26F/FY27F, respectively, adjusting for the potential contribution from new and ongoing launches. We upgrade our recommendation to Buy (from Hold) with a higher target price of 52 sen (from 47 sen), based on a 30% discount to our revised net asset value and appraised with a three star ESG rating. — APEX Securities (June 17, 2025)

(Calls by analysts tracked by Bloomberg: 2 Buy, 0 Hold, 0 Sell; Consensus target price: 68 sen)