PETALING JAYA: PGF Capital Bhd
expects its insulation business to remain its key earnings driver for the financial year ending February 2026, supported by regulatory-led demand growth.
The group said momentum in Australia is underpinned by updated building codes, the Australian federal government’s plan to deliver 1.2 million new homes by 2029, and the Victorian government’s recent initiative to halve ceiling insulation installation costs.
At the same time, it said from July this year, the requirement for all rental properties in New Zealand to fully comply with the Healthy Homes standards is also anticipated to sustain demand growth in the group’s other core market in Oceania.
For its second quarter ended Aug 31 (2Q26), PGF Capital saw net profit decline by 28.1% year-on-year (y-o-y) to RM5.1mil, even as revenue rose 7.1% to RM45.4mil.
For the six months up to August, net profit also dipped 8.9% y-o-y to RM12.5mil, despite turnover growing 3.7% to RM86mil.
In a filing to Bursa Malaysia, the group said the improvement in revenue was primarily supported by steady demand in its insulation segment, while the lower profitability was attributed to a mark-to-market unrealised loss of RM1.69mil on cross-currency swap facilities secured to finance the segment’s expansion plan.
Compared to 1Q26 ended May 31, net profit fell 32.2% from RM7.5mil, although revenue again increased from RM40.6mil.
PGF Capital explained that this was primarily due to a lower average selling price resulting from a weakened export currency and higher operating expenditure in the Oceania market for its insulation division.
“The decline in profitability was further affected by a higher mark-to-market unrealised loss of RM1.09mil in 2Q26, compared to RM610,000 in 1Q26,” it said
