KUALA LUMPUR (Oct 28): PGF Capital Bhd (KL:PGF), which mainly manufactures insulation products, saw its net profit more than double for the second financial quarter ended Aug 31, 2024 (2QFY2025), primarily attributed to its insulation segment, driven by strong demand from the Oceania market.

Net profit for 2QFY2025 jumped to RM7.03 million from RM2.94 million in the corresponding quarter last year, PGF’s Bursa Malaysia filing on Monday showed.

Quarterly revenue stood 40.6% higher at RM42.38 million, compared with RM30.14 million previously, mainly driven by higher sales contribution from the insulation business, PGF said.

Its insulation segment — which remained the core revenue generator for the group, accounting for 99.6% of total revenue in 2QFY2025 — recorded a year-on-year increase of 44.6% in revenue to RM42.21 million in the quarter under review, on the back of stronger demand, particularly from the Oceania market.

The remaining business segments, namely property development, investment holding and others had negligible impact on overall performance, PGF added.

The group declared a first interim dividend of two sen per share, payable Nov 29. This will translate to a dividend payout of about RM3.9 million.

For the first half of the financial year (1HFY2025), PGF posted a net profit of RM13.73 million, almost double the RM6.89 million it recorded in the same period last year, as revenue rose 41.4% to RM82.89 million from RM58.62 million previously.

“Demand for insulation, especially in Australia, remains robust, fuelled by structural changes and government initiatives,” said Fong Wern Sheng, PGF group chief executive officer and major shareholder, in a separate statement.

“Additionally, our strategic investments in a dedicated delivery fleet and distribution hubs across key Australian cities have positioned us to capitalise on this growth by providing timely services to our customers,” he added.

While demand is expected to remain healthy, looking ahead, the group expects potential impact from the recent strengthening of the ringgit against the Australian dollar, a temporary shortage in skilled labour in Australia, as well as disruption caused by strike among Australian construction workers over the federal administration of its union.

“However, we expect these challenges to be mitigated as we move towards the fourth quarter,” Fong said.

At market close on Monday, shares in PGF Capital dropped one sen or 0.46% to RM2.17, giving the group a market capitalisation of RM420.85 million.