10 Apr 2025 PGF Optimistic On Australia, Undeterred By US Tariff
Source: https://www.businesstoday.com.my/2025/04/10/pgf-optimistic-on-australia-undeterred-by-us-tariff/
PGF Capital Berhad said it welcomes the recent decision by the Victorian State Government of Australia on 8 April 2025 to reduce the cost of ceiling insulation installations under the Victorian Energy Upgrades programme, commencing early 2026. This initiative is anticipated to drive growth in demand for its insulation solutions across Victoria, the most densely populated state in Australia, with a population of over 7 million.
The VEU programme will halve the average cost of ceiling insulation from approximately AU$3,000 to AU$1,500, helping households to save an estimated AU$400 annually on their energy bills. Addressing a critical need, the Victorian State Government data reveals that 200,000 homes lack any insulation, and nearly 60% of homes across the State either have uninsulated ceiling or under-insulated.
The VEU programme provides financial incentives for energy efficiency improvements through a tradable certificate mechanism. The VEU programme’s track record, having already supported more than 170,000 businesses and 2.4 million households in upgrading appliances and equipment and saving more than AU$440 million on energy bills since 2009, underscores the significant market opportunity for insulation providers like PGF Capital.
Executive Director and Group Chief Executive Officer, Mr Fong Wern Sheng’ Our established insulation manufacturing capabilities, coupled with our strategic network of distribution hubs and dedicated fleet in key Australian cities like Melbourne, the capital city of Victoria, ensure our readiness to provide a consistent and timely supply of insulation solutions to meet the growing need of Victorian households.”
PGF has an established presence in the Australian insulation market and will be proactively increasing its manufacturing capacity to meet anticipated growth, including the demand generated by the VEU programme. The Group’s current 25,000 metric ton per year plant, located in Perai, Penang, will be complemented by a new 40,000 metric ton facility under development in Kulim, Kedah, expected to be completed by the first half of 2026. This expansion will result in a total manufacturing capacity of 65,000 metric tons, enabling PGF Capital to effectively capitalise on future market opportunities.
“Building on that, we believe our flagship “Ecowool” brand is key to making the most of this opportunity. Ecowool’s long-standing reputation for consistent high quality, achieved through stringent production standards, provides the reliability that homeowners and professionals depend on for effective and trustworthy insulation,” he concluded.
Separately, PGF Capital confirms that the recently announced tariffs by the United States government will not have any material impact on its operations. With over 70.0% of exports focused on the Oceania region and approximately 20.0% of revenue derived from domestic sales, the Group has no current exports to the United States, thus insulating PGF Capital from these tariffs.
The Group recorded a 27.3% increase in revenue, reaching RM121.3 million compared to RM95.3 million in the corresponding period a year ago (“9MFY24”). This growth was largely driven by higher sales from the insulation segment, reflecting sustained demand and an expanding market footprint.
The improved top line performance translated into stronger profitability. 9MFY25’s net profit rose significantly to RM20.0 million, marking a 63.0% increase from RM12.3 million recorded in 9MFY24. As at 30 November 2024, PGF Capital maintained a healthy financial position. The Group reported a positive net cash balance of RM8.7 million, while its gearing ratio remained low at 0.11 times. Net asset per share stood at RM1.36, reflecting continued balance sheet strength.
