PETALING JAYA: PGF Capital Bhd
(PGF) is poised for continued earnings resilience in the coming quarters, buoyed by robust demand for insulation products and fresh catalysts from car maker BYD’s planned investment in Tanjong Malim, Perak.
The company’s second quarter (2Q26) results, due at the end of this month, are projected to come in between RM6mil and RM9mil, lifting its profit for the first half of its financial year ending Feb 28, 2026, to between RM15mil and RM18mil, or 42% to 51% of the full-year earnings forecast.
TA Research expects the strong momentum seen in 1Q26 to persist into the second quarter, supported by firm demand for PGF’s glass wool insulation products in Australia. The research house said management has indicated that US tariffs have minimal impact on its exports, though capacity constraints could limit near-term earnings growth.
A major upside driver, however, lies in PGF’s property development division, following BYD Malaysia’s confirmation of a local assembly plant in Tanjong Malim, to be located at KLK TechPark.
The research house said it believes the electric vehicle giant’s greenfield development is expected to accelerate infrastructure improvements in the area.
The research house made no changes to PGF’s earnings projections for FY26 and FY27, and maintained its sum-of-parts valuation of RM2.99 per share with an unchanged “buy” recommendation, highlighting ample growth potential as PGF rides the coattails of BYD’s strategic expansion in Malaysia.
