TA Research expects the company to declare its usual final dividend, estimated at one to 1.5 sen per share.
PETALING JAYA: PGF Capital Bhd
is expected to report a quarterly profit of between RM3mil and RM6mil for the fourth quarter of financial year 2025 (4Q25). This represents a year-on-year growth of between 107% and 129%, said TA Research.
For this quarter, TA Research expects the company to declare its usual final dividend, estimated at one to 1.5 sen per share.
It also expects a weaker quarter-on-quarter performance in 4Q25 due to seasonal factors.
On a year-on-year basis, it would likely be muted as well as the earnings growth has been crippled by capacity constraint.
On a cumulative basis, a decent growth of over 100% is anticipated, driven by the absence of startup losses from its new warehouses in the first half of financial year 2024. It has a “buy” call on the stock with a target price of RM3 a share.
The shares closed at RM1.71 in yesterday’s trading.
The construction of a new manufacturing facility in Kulim East is progressing smoothly and is on track to meet the completion deadline in 1Q26.
Orders for machinery and equipment have already been placed and deliveries can be expected in 3Q25.
The project manager is getting ready for the on-site installation and the trial run would begin in 4Q25. It expects the selling price of glass wool to remain elevated at RM6 per kg for 4Q25.
The United States and China have been the major importer and exporter of glass wool insulation products in the market.
As such, it is crucial to assess the intensity of dumping activity from China after the United States imposed a whopping 145% reciprocal tariff on China’s exports.
From its channel checks, it understands that US glass wool imports mainly come from Mexico, Canada and China.
When the United States implemented a 10% tariff on mineral and other products, including mineral wool products, from China in February, 2025, the price of glass wool remained firm and PGF Capital continued to sell its product at average RM6 per kg.
