PULAU PINANG: PGF Capital Berhad (“PGF Capital” or the “Group”) (BURSA: 8117), Southeast Asia’s leading insulation producer, has announced a record-breaking revenue of RM155.0 million for the financial year ended 28 February 2025 (FY25), marking a 20.5% increase from RM128.6 million in FY24. The growth was predominantly driven by the Insulation and Related Products segment, which contributed 99.2% of the Group’s total revenue, underscoring its central role in PGF Capital’s performance.
The Oceania market, particularly Australia, remained a key growth driver amid continued demand and supportive regulatory developments. This includes Australia’s revised building codes and the Victorian State Government’s upcoming insulation upgrade incentives under the Victorian Energy Upgrades (VEU) programme, scheduled to take effect in 2026.
Profit before tax (PBT) surged to RM47.0 million in FY25—more than triple the RM15.4 million recorded in FY24—bolstered by robust insulation sales and a one-off RM19.6 million reversal of impairment loss on land held for development. Profit after tax (PAT) also saw significant improvement, rising to RM33.9 million from RM10.5 million in the previous year.
Positive Outlook Anchored on Insulation and Regulatory Tailwinds
“Looking ahead, we anticipate our Insulation segment to continue its strong performance and be a key driver of earnings in the new financial year,” said Mr Fong Wern Sheng (邝汶城), Group Chief Executive Officer of PGF Capital. “The Australian market continues to present exciting prospects, especially with the upcoming VEU programme expected to boost demand further in Victoria.”
Domestically, the Group expects rising momentum following the implementation of Malaysia’s Energy Efficiency and Conservation Act 2024. PGF Capital also plans to tap into new markets with its soon-to-be-certified mineral wool sandwich panels for industrial and commercial buildings. These panels, known for superior thermal performance, are currently undergoing SIRIM and BOMBA certification.
Expansion and Tax Incentives to Drive Future Growth
PGF Capital’s upcoming 40,000-metric-tonne manufacturing facility in Kulim East Industrial Park, Kedah, is on track to begin commercial operations in the first half of 2026. The plant has secured a tax incentive package from the Northern Corridor Economic Region (NCER), entitling the Group to a five-plus-five-year corporate tax holiday upon achieving profitability.
Despite recent U.S. tariff announcements, PGF Capital stated that its business remains unaffected as it has no direct exports to the United States. Over 70% of its exports are focused on the Oceania region, with another 20% derived from domestic sales.
Diversification Through Property Development
PGF Capital is also pursuing strategic expansion in its property development segment. In December 2024, the Group’s joint venture, Nexel Development KHTP Sdn. Bhd., acquired 9.6 acres in Kulim Hi-Tech Park for a proposed mixed-use development targeted to launch in early 2026, pending regulatory approvals. Additionally, the Group’s Phase 1 project in Tanjong Malim, Perak, developed in partnership with Malvest Properties Sdn. Bhd., is in progress, aligned with the Malaysian government’s vision to transform Proton City into an Automotive High-Tech Valley.
Quarterly Turnaround and Solid Financial Position
For the fourth quarter of FY25, PGF Capital posted RM33.7 million in revenue, up slightly from RM33.3 million in 4QFY24. However, PAT for the quarter rebounded sharply to RM13.9 million, compared to a RM1.8 million loss a year earlier. This was largely due to the aforementioned impairment reversal and the absence of a one-off grant reversal recorded last year. The gain was partially offset by expenses related to new banking facilities and a RM2.3 million unrealised mark-to-market loss on a cross currency swap.
The Group maintained a strong balance sheet with net gearing of 0.12 times and net assets per share of RM1.41. Net operating cash flow stood at RM11.4 million for the year.
Dividend and Shareholder Return
The Board of Directors has proposed a final dividend of 1.0 sen per ordinary share, subject to shareholder approval at the upcoming Annual General Meeting. Together with the 2.0 sen interim dividend already paid, the total dividend payout for FY25 amounts to 3.0 sen per share, representing a total distribution of RM5.8 million.
