SkyWorld nears deal for Vietnam joint venture on completion of due diligence, says on track for RM4.6b launch target by 2026

• SkyWorld chief executive officer Lee Chee Seng: “The cumulative GDV for our pipeline of planned developments to be launched within the next two years is more than RM3.5 billion.”

KUALA LUMPUR (Nov 22): Property developer SkyWorld Development Bhd (KL:SKYWLD), which made its Main Market debut in July last year, said it is on target to launch developments with an estimated gross development value of RM4.6 billion by 2026, having achieved RM1.1 billion worth of launches so far.

“The cumulative GDV for our pipeline of planned developments to be launched within the next two years is more than RM3.5 billion. We are also continuing our efforts to identify potential sites in Malaysia and Vietnam to capitalise on new growth opportunities for future development. In Malaysia, our emphasis will be on bridging the affordability while seeking a balance on liveability by offering ‘Healthy Building, Health Living’ concept. This will elevate the living standard for homeowners while providing lower entry costs to own a house,” said SkyWorld chief executive officer Lee Chee Seng in a statement.

The group has now completed the due diligence for the proposed joint development of a property in Vietnam's Binh Duong province, its second venture into that country. "The parties are currently in the midst of negotiating a term sheet before finalising the shareholders' agreement and the sales and purchase agreement," it said in a bourse filing on Friday.

It proposed in August the joint development of the remaining plots of the Guocoland Commercial Complex project in Thuan An City with SkyVenue Land Group Joint Stock Company, SkyBridge Company Ltd and the shareholders of SkyVenue. SkyBridge is a unit of SkyVenue, which has been duly registered to implement the project and has already secured the land use rights. The collaboration entails the acquisition of up to 49% of SkyVenue shares from its shareholders.

The group, with unbilled sales of RM592 million as at end-September this year, is cautiously optimistic on achieving a satisfactory performance in FY2025.

For its second quarter ended Sept 30 (2QFY2025), SkyWorld made a net profit of RM14.53 million, as opposed to RM19.11 million in 2QFY2024, while revenue dropped to RM124.33 million from RM148.33 million following the completion of two projects — the SkyAwani IV Residences and SkyAwani V Residences — which collectively contributed RM49.3 million sales to 2QFY2024.

The group declared an interim dividend of half sen per share, to be paid to shareholders on Dec 30, as opposed to the 1.25 sen it announced for the same period last year. Its earnings per share came in at 1.45 sen for 2QFY2025, compared with 2.53 sen in 2QFY2024.

For the first half of FY2025, Skyworld made a net profit of RM24.52 million versus RM61.1 million in the corresponding first half of FY2024, as cumulative revenue dropped to RM223.14 million from RM359.16 million.

SkyWorld shares rose half a sen or 9% to close at 56 sen on Friday, valuing the group at RM560 million. It was listed at an initial public offering price of 80 sen per share.

SkyWorld Development is one of EdgeProp START’s strategic partners. Curvo Residences at Setapak is a development highlighted in this partnership. All SkyWorld Development homebuyers also get to enjoy rewards worth up to RM18,888. 

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