PETALING JAYA: Australia’s push to build more residential properties together with the rollout of infrastructure projects such as the light rail transit (LRT) and the expansion of the Penang International Airport are expected to increase demand for PGF Capital Bhd
’s glass wool insulation.
TA Research said, in a report, that demand for the company’s glass wool insulation is expected to remain strong in Australia as the government has strived to increase housing supply in a bid to address the shortage crisis.
“Locally, the demand would be driven by the rollout of infrastructure projects such as the LRT and airport expansion in Penang,” it added.
The research house, which has maintained a “buy” call on the stock, with a sum-of-parts valuation of at RM2.76 a share, has not changed its earnings projections for the financial year ending Feb 28, 2025 (FY25) to FY27 pending management guidance on the company’s outlook in an analysts’ briefing next month.
It noted that PGF posted a “positive earnings surprise” for the second quarter ended Aug 31, 2024 (2Q25) on the back of stronger-than-expected demand for glass wool insulation products, while core profit in the first-half of FY25 increased by more than five times on the back of higher revenue and stronger margins.
PGF declared a first interim dividend of two sen per share for 2Q to be payable on Nov 29, 2024.
