Kuala Lumpur:Hong Leong Investment Bank Bhd (HLIB) has expressed optimism about the future of Skyworld Development Bhd, citing a significant earnings inflection point as a key driver.

According to BERNAMA News Agency, the affordable housing project Bandar MADANI Bukit Jalil is expected to enhance Skyworld's prospects. This optimism is based on the company's previous success with the Rumah Bakat MADANI development in Penang, which similarly incorporated a vertical school component.

The Bukit Jalil project is projected to have a gross development value ranging from RM6 to RM7 billion. Additionally, the expanded stamp duty relief for first-time homebuyers is anticipated to lower initial purchase costs, thereby boosting housing demand.

HLIB forecasts sequential revenue growth as projects progress to more advanced construction stages, leading to accelerated billings. It also noted that revenue for the second quarter of the 2027 financial year is likely to benefit from increased recognition of completed-unit sales at Curvo Residences in Setapak.

The bank further indicated that with the commissioning of a prefabricated and prefinished volumetric construction (PPVC) plant by the end of the third quarter of FY2027, billings should see a boost from the fourth quarter of FY2027, as prefabrication techniques streamline construction timelines compared to traditional methods.

Skyworld's strong launch pipeline, exceeding RM2 billion for FY2027, along with record high unbilled sales of RM1.13 billion as of the first quarter of FY2027, supports its earnings visibility. The report also highlighted that Skyworld is at a pivotal earnings inflection point, with FY2026 marking the cyclical trough. The company is poised for a new earnings upcycle, driven by its Penang projects, an enriched launch pipeline, and unprecedented unbilled sales.

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