KUALA LUMPUR (May 26): SkyWorld Development Bhd (KL:SKYWLD) concluded its recent financial year on its weakest footing since its 2023 listing, weighed by lower margins, unrealised foreign exchange losses and higher costs.
Net profit for the year ended March 31, 2026 (FY2026) fell 46.58% to RM29.6 million from RM56.15 million in the previous year, the property developer’s bourse filing on Tuesday showed. Revenue declined 3.37% to RM430.48 million from RM445.49 million.
The group recognised an unrealised forex loss of RM5.1 million during the year. It also incurred finance costs of RM19.07 million, up 30% compared with RM14.67 million in FY2025.
The weaker earnings were also dragged by higher administrative expenses of RM73.38 million, up 9.5% from RM66.99 million previously, while selling and marketing expenses increased 8.4% to RM16 million from RM14.76 million.
For the fourth financial quarter, SkyWorld’s net profit fell 68.16% to RM5.83 million from RM18.32 million a year earlier, despite revenue rising 15.46% to RM132.18 million from RM114.48 million.
The group attributed the weaker quarterly profitability to a change in revenue mix weighted towards lower-margin projects, upward revisions in development costs for Vesta Residences, bad debt written off amounting to RM800,000, as well as higher finance costs.
SkyWorld declared a final dividend of 0.38 sen per share, payable in July. This brings the total dividend for FY2026 to 0.6 sen, compared with 1.1 sen in FY2025.
The group said it achieved RM1 billion in sales in FY2026, driven by newly launched and ongoing projects. Unbilled sales more than doubled to RM1.1 billion as at March 31, 2026, more than double the RM500 million reported a year earlier.
In a statement, SkyWorld said the higher property sales underscores its strategic expansion into Penang, successfully replicating its core product offerings outside the Klang Valley area to secure long-term earnings visibility.
“Our entry into Penang is a clear game-changer for us. Coupled with our proven product quality and strong execution capabilities, the continued growth in unbilled sales reflects the market’s confidence in our developments,” said chief executive officer Lee Chee Seng.
Looking ahead to FY2027, the group plans to launch new projects with a combined estimated gross development value (GDV) exceeding RM2 billion across Malaysia and Vietnam.
Since its listing, the group remains firmly committed to a cumulative GDV launch of at least RM4.6 billion through to year 2026. To date, the group has launched projects with a cumulative GDV of RM2.8 billion.
SkyWorld said its net gearing ratio stood at 0.25 times as at end-March, with cash balance exceeding RM300 million, providing the group ample financial flexibility to fund and accelerate its project pipeline.
SkyWorld’s share price closed down half a sen or 1.14% to 43.5 sen on Tuesday, giving the group a market capitalisation of RM445 million.
theedgemalaysia.com