26 Oct 2026 PGF Capital Q2 FY27 PAT surges 63.1% to RM8.2m on stronger insulation demand
PENANG: Main Market-listed leading insulation producer in Southeast Asia, PGF Capital Bhd posted revenue of RM49.2 million in Q2 ended Aug 31, 2026 (FY27), up 8.3% year-on-year (YoY) from RM45.4 million in Q2 FY26.
Profit before tax (PBT) expanded 43.1% YoY to RM11.6 million from RM8.1 million, while profit after tax (PAT) jumped 63.1% YoY to RM8.2 million from RM5.0 million.
In addition to higher revenue, Q2 earnings benefited from a lower mark-to-market unrealised loss of RM0.1 million on the cross-currency swap facilities (MTM unrealised loss) secured to finance the Insulation segment’s expansion plan, as compared to RM1.1 million recorded in Q2 FY26.
The Insulation segment remained the group’s key revenue driver, contributing RM49.0 million, or 99.6% of Q2 FY27’s total revenue, with the balance coming from investment holding and other activities.
Segment PBT improved to RM13.6 million from RM10.2 million a year earlier, underpinned by stable demand from the Oceania markets.
On a cumulative six-month basis, 1H FY27 revenue stood at RM92.9 million, up 8.1% YoY from RM86.0 million in 1H FY26, supported by steady demand in the Insulation segment.
PBT climbed 27.2% YoY to RM23.1 million from RM18.1 million, and PAT advanced 36.2% YoY to RM17.1 million from RM12.5 million. 1H FY27 also included a net mark-to-market unrealised gain of RM0.6 million on the cross-currency swap facilities (MTM unrealised gain), compared with an MTM unrealised loss of RM1.7 million a year ago.
PGF Capital executive director and group CEO Fong Wern Sheng said the group is positive about the Q2 earnings, led by the Insulation segment.
“Demand from Oceania, our key export market, remained healthy, supported by housing standards and energy efficiency requirements.
“Our South Australia Distribution Centre, which commenced operations on Aug 31, 2026, will strengthen our ability to serve customers in the state,” he said.
Fong said the newly launched National Energy Efficiency Policy and Action Plan 2026-2035 (NEEAP 2.0) provides a supportive backdrop in Malaysia.
The plan targets an 11.6% reduction in national energy demand by 2035 and recognises thermal insulation as an energy efficiency measure for industrial and commercial applications.
“Looking ahead, commissioning our new Kulim plant in Kedah is the key priority for the rest of FY27.
“Installation of machinery, gas pipelines and electrical infrastructure is progressing well and, barring unforeseen circumstances, the plant is expected to commence operations by Q4 FY27.
“The added capacity will support both domestic and international demand, while we continue to assess overseas markets with similar insulation requirements,” he said.
Underpinning these plans, the group’s financial position remains sound, with net assets per share of RM1.53 and a net gearing ratio of 0.7 times as of Aug 31, 2026.
Net cash from operating activities strengthened to RM13.4 million in 1H FY27 from RM9.9 million a year ago, giving the group a firm footing as it completes the Kulim plant and moves into its next phase of capacity expansion.
