PETALING JAYA: PGF Capital Bhd
’s main revenue generator is anticipated to come from the Australian market due to the strong demand for insulation products.
In a recent briefing with the company’s management, TA Research said it indicated that more than 70% of the total revenue was derived from the Australian market in the first quarter of 2025 (1Q25) and the trend would likely persist going forward, thanks to the change in building code that had tightened the requirement for building insulation.
The research house said PGF Capital’s 1Q25 results performance was encouraging with a 60% year-on-year (y-o-y) growth in core profit to RM6.4mil supported by revenue growth of 42.2% with relatively stable margins. This was a testament to the robust demand for insulation products in Australia, it added.
According to the research house, the management is also confident of securing orders from light rail transit and airport expansion projects in Penang.
“Although the one-off orders would not be big in terms of contract value, it is big enough to cause a constraint on its existing capacity of 25,000 tonnes, which has already been maxed out in 1Q25,” the research house said.
On the recently signed five-year distribution right for mineral wool sandwich panels from Centria International, a global leader in advanced building materials and solutions, the research house said the distribution right is exclusive in Malaysia and non-exclusive in Australia, New Zealand and Singapore.
Looking forward, it said the company planned to set up a joint venture with Centria International to produce sandwich panel at its new Kulim plant, using glass wool.
PGF Capital’s net profit rose by 69.81% y-o-y to RM6.7mil in the first quarter of financial year 2025 (1Q25) from RM3.9mil in the same quarter of the previous year. It achieved revenue of RM40.51mil with earnings per share of 4.06 sen.
Segmentally, the insulation segment remained the core revenue generator, accounting for 99.5% of total revenue. The remaining business segments, namely property development, investment holding and the others segments had negligible impact on overall performance.
The group net assets per share increased to RM1.41 from RM1.29 at the end of the preceding financial year.
