KUALA LUMPUR, PGF Capital Berhad (“PGF Capital” or “the Group”) (stock code: 8117), a leading insulation manufacturer listed on the Main Market, kicked off its new financial year on a strong note, recording a net profit of RM7.5 million for the first quarter ended 31 May 2025 (1QFY26), up 11.9% from RM6.7 million in the same period last year.
Revenue held steady at RM40.6 million compared to RM40.5 million in 1QFY25. The improved profit was mainly due to solid demand for insulation products from the Oceania region and tighter cost controls, though it was partly offset by a RM0.6 million unrealised loss on currency swaps.
PGF Capital Berhad – Group CEO Fong Wern Sheng
The Insulation segment remained the Group’s main revenue driver, contributing 99.7% of total revenue. PGF Capital noted strong sales momentum in Australia, supported by government policies such as updated building codes and housing targets, along with incentives like the Victorian Energy Upgrades programme.
However, a gas pipeline incident in Putra Heights temporarily affected production and exports during the quarter.
The Group also shared positive updates on its new mineral wool sandwich panels, which have been certified by SIRIM and are awaiting final approval from Malaysia’s Fire Department. These products are expected to support energy-efficient construction under the Energy Efficiency and Conservation Act 2024.
PGF Capital’s new 40,000 metric-tonne plant in Kulim, Kedah, remains on track to begin commercial operations in the first half of 2026. The project has secured a tax incentive package under the Northern Corridor Economic Region (NCER), which includes a 5+5 year corporate tax holiday.
The Group reassured stakeholders that ongoing US reciprocal tariffs are unlikely to impact its business, as the majority of its exports go to Oceania and Malaysia, with no direct exports to the US.
On the property development front, PGF Capital received conditional planning approval for Phase 1 of its Tanjong Malim project. In partnership with Malvest Properties, the development will deliver 1,808 residential and commercial units, supporting the government’s vision of making Proton City an Automotive High-Tech Valley.
Financially, the Group maintained a healthy net gearing ratio of 0.15 times and net assets per share of RM1.39. It also generated RM3.4 million in operating cash flow during the quarter, reflecting solid underlying performance.
