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PETALING JAYA (May 1): SkyGate Solutions Bhd's property investment arm delivered steady recurring income in the financial year ended Dec 31, 2025 (FY2025), even as its property development segment contracted sharply — while a manufacturing surge pushed group revenue up 35.1% to RM90.0 million from RM66.65 million in FY2024, according to its annual report filed with Bursa Malaysia on April 30, 2026
The property investment and management segment generated RM5.81 million in revenue and a segment profit of RM4.91 million for FY2025.
Its anchor asset, Menara IJM Land in Penang — a 16-storey office building with a 7-storey car park and 135,001 sq ft of net lettable area, strategically located at the Tun Dr Lim Chong Eu Expressway interchange — delivered RM5.2 million in rental income for the year.
A fair value gain on investment properties of RM14.91 million was also recorded across the Group.
Looking ahead, the group is actively expanding its land bank. Key initiatives include a 3.93-hectare freehold land parcel held by Skydorm Sdn Bhd, and an industrial dormitory development by Delight Island Sdn Bhd on 14 contiguous lots of vacant industrial land in Seberang Perai Utara to serve the demand for foreign worker accommodation within Penang's industrial sector.
Property development contracts
The property development segment saw a notable contraction, with revenue declining to RM15.14 million from RM37.21 million in FY2024, and profit before tax (PBT) easing to RM2.29 million from RM13.39 million.
Management attributed the slowdown to post-pandemic normalisation following the completion of the City of Dreams luxury condominium project — comprising twin 38-storey towers with a gross development value of RM800 million — in Tanjung Sri Pinang, Penang.
Manufacturing drives top line
The manufacturing segment was the group's top-line engine, with revenue surging RM44.6 million to RM68.95 million, driven by the full-year contribution of VS Solution Services Sdn Bhd and the newly integrated SkyGate Integration Sdn Bhd, acquired in FY2025.
The segment narrowed its loss before tax to RM1.03 million from RM1.88 million, with management targeting profitability through process streamlining and resource optimisation.
Group financials and governance
Despite the revenue leap, group PBT fell 47.3% to RM4.64 million from RM8.79 million, and EPS declined to 1.04 sen from 1.84 sen, weighed down by higher finance costs of RM5.85 million, increased administrative expenses and goodwill impairment charges of RM2.64 million.
Total assets grew to RM556.97 million from RM420.38 million, while total equity attributable to owners rose to RM284.96 million.
Cash and cash equivalents stood at RM38.17 million. SkyGate maintains a dividend policy targeting a minimum annual distribution of 3.5 sen per share.
The board comprises five directors — three independent non-executive directors (60%) and two executive directors, led by executive chairman Tay Seng Chew and CEO Goh Kiang Teng.
Editor's note: This article is for informational purposes only and does not constitute financial or investment advice.
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