Mercury Securities is optimistic on PGF’s medium-term earnings outlook.
PETALING JAYA: PGF Capital Bhd
’s near-term earnings may remain pressured by currency volatility and seasonally weaker fourth quarter of financial year 2026 (4Q26) performance.
Mercury Securities expects earnings momentum to resume from financial year 2027 (FY27) onwards following the commissioning of additional production capacity and improving operating leverage.
Its property development contribution is expected to be significant in FY27, with the core insulation segment continuing to anchor earnings visibility, according to the research house.
Mercury Securities is optimistic on PGF’s medium-term earnings outlook, supported by renewed driven demand for glass mineral wool insulation across its key export markets.
Regulatory tailwinds from Australia’s National Construction Code and Malaysia’s Energy Efficiency and Conservation Bill continue to support insulation adoption in both new builds and retrofit activities.
It retained its “buy” call with a target price (TP) of RM2.43 a share.
Both Maybank Investment Bank Research and TA Research also retained their “buy” calls with a TP of RM2.93 and RM2.92 a share respectively.
All three research houses did not make any changes to their earnings forecast after PGF reported nine months FY26 earnings.
PGF reported profit after tax and minority interest of RM4.6mil a share for 3Q26.
