28 Jul 2023 PGF Capital expects demand for insulation products to sustain in FY24
KUALA LUMPUR: PGF Capital Bhd (PCB) foresees continued demand for its fibre glass wool and other related products and maintains a steady outlook for the financial year 2024 (FY24).
The company also expects minimal changes in the geographical and revenue contributions from the insulation segment in FY24, ending February 29, 2024.
In a statement today, the company said that with the gradual decrease in ocean freight costs, it expects profit margins to improve with reduced operating costs.
Additionally, PCB aims to enhance its local customer service and distribution network with newly established warehouses in Australia, capturing a larger share of the Oceania market.
On the property segment, PCB aims to develop the leasehold land in Tanjung Malim to complement the government’s initiative to transform the township into an automotive high-tech valley (AHTV) for new energy vehicle productions and enhance national car manufacturer, Proton Holdings Bhd’s Tanjong Malim plant into a regional hub with investment from Chinese automaker, Zhejiang Geely Holding Group Co Ltd.
PCB owns approximately 1,311.1 acres of leasehold land in Tanjong Malim, Perak, strategically located next to the government’s proposed AHTV.
Additionally, PCB is currently applying for planning permission for a 45.0-acre land designated for developing a township in collaboration with Malvest Properties Sdn Bhd.
The company targets to obtain the necessary approval by FY24/FY25 following the submission of the master plan rezoning to realign with a long-term local plan.
Given the dynamic nature of the property market and the challenges posed by high inflationary and interest rate pressures, PCB will time its property launches in line with demand and changing market conditions, it said.
At the annual general meeting (AGM) today, shareholders approved a final tax-exempt dividend of 1.0 sen per share for FY23, bringing the total dividend payout to 2.0 sen for FY23.
From FY24 onwards, PCB aims to distribute a minimum of 25 per cent of its net profit as dividends, subject to the availability of sufficient distributable reserves and other relevant factors to sustain its operations.