PETALING JAYA: Insulation products manufacturer PGF Capital Bhd
(PGF) is expected to benefit from the establishment of a new BYD plant in Tanjung Malim.
Development in Tanjung Malim’s automotive hub would benefit PGF as the company owns land there that can be monetised.
According to TA Research, the new investment and eventual employment opportunities would boost demand for housing, adding value to PGF’s Tanjung Malim land, which has and estimated undeveloped gross development value of RM3bil.
“However, the water shortage issue surrounding PGF’s housing development in the area remains unresolved, despite having obtained conditional-development approval.
“We think the chance of launching the project in the company’s financial year ending Aug 31, 2026 (FY26) and achieving an 80% take-up rate, in order to recognise the land sale gain, has faded,” the research house said.
As such, TA Research said it had carried forward the partial RM9.7mil land sales gain forecast to FY27 from FY26.
Meanwhile, following a slight delay, the company has begun construction of a plant in Kulim East.
TA Research said PGF’s management appears optimistic about a commencement date for the project in its coming first quarter and as such it is keeping its forecasts unchanged.
“We reduce our FY26 earnings projections by 23%, while increasing our FY27 earnings projections by 13% to account for the the timing of recognising the land sales gain,” the research house said.
TA Research maintained its “buy” call on PGF, raising its sum-of-parts valuation to RM3.05 per share from RM2.99, rolling forward its valuation base year to 2027.
