Bukit Jalil:Hong Leong Investment Bank Bhd (HLIB) has expressed optimism about Skyworld Development Bhd's future outlook, highlighting a major earnings inflection point. The bank noted that the affordable housing project, Bandar MADANI Bukit Jalil, is likely to benefit Skyworld due to its previous success with a similar project in Penang, Rumah Bakat MADANI, which included a vertical school component.

According to BERNAMA News Agency, The Bandar MADANI Bukit Jalil project is projected to have a gross development value of RM6-7 billion. HLIB mentioned that the expanded stamp duty relief for first-time homebuyers will help reduce upfront purchase costs, thereby supporting housing demand. Sequential revenue growth is expected as projects progress into later construction stages, which should accelerate billings. Specifically, revenue for the second quarter of the 2027 financial year is anticipated to rise due to higher recognition of completed-unit sales at Curvo Residences in Setapak.

Further, HLIB indicated that the commissioning of a prefabricated and prefinished volumetric construction (PPVC) plant by the end of the third quarter of FY2027 will enhance billings from the fourth quarter of FY2027, as prefabrication reduces construction time compared to traditional methods. The company's robust FY2027 launch pipeline, exceeding RM2 billion, and record-high unbilled sales of RM1.13 billion as of the first quarter of FY2027, provide strong earnings visibility.

The report also pointed out that Skyworld is at a significant earnings turning point, with FY2026 marking the cyclical trough. The company is entering a new earnings growth phase with its projects in Penang, a refreshed launch pipeline, and unprecedented unbilled sales serving as fresh growth drivers.

As of 10.30 am, Skyworld's shares increased by two sen to 41 sen, with 282,100 units transacted.