02 May 2023 PGF Capital forecasts robust demand for its insulation products
PETALING JAYA: PGF Capital Bhd expects strong demand for its insulation products moving forward in light of favourable regulatory changes in key markets.
This is in anticipation of the enforcement of the National Construction Code and Building Code’s revision in Australia and New Zealand, respectively.
According to PGF Capital executive chairman Fong Wern Sheng, the revisions require more insulation to achieve higher energy efficiency ratings for their buildings and he is confident the regulatory change will benefit the group.
Catering to the growing demand for insulation in the Oceanic region, PGF Capital has set up warehouses in Brisbane and Melbourne which allows room for the group to improve its distribution infrastructure.
“With a stronger local presence in Australia, we can now provide swift delivery and better serve our customers,” he added.
PGF Capital is also exploring development opportunities for its land in Tanjong Malim, whilst nurturing its agriculture, aquaculture and agrotourism activities to maximise the value of the land.
The 1,311 acres of leasehold land in Tanjong Malim, Perak is one of the assets owned by the group, adjacent to the Automotive High-Tech Valley.
PGF Capital achieved a total revenue of RM91.1mil in financial year 2023 (FY23) which ended on Feb 28 with a 58.3% year-on-year (y-o-y) increase from the previous year’s revenue of RM57.6mil.
PGF Capital said in a statement that the notable increase was largely attributable to higher volume of insulation products produced and sold during FY23 under review.
It was noted the insulation and related products division were the main contributor to the group’s revenue with a 97.4% contribution margin in comparison to the property development and others segment.
Sheng said the group’s revenue and profit expansion reflected the improved business landscape following the Covid-19 pandemic.
“Operationally, while there are inflationary pressures, these are mitigated by lower ocean freight cost, allowing us to remain competitive in the market,” he added.
For the quarter under review, the higher sales volume increased total revenue to RM25mil, a 48.7% y-o-y increase from RM16.8mil a year ago.
After accounting for the reversal impairment loss that was partially offset by the elimination of the unrealised profit, PGF Capital’s net profit has increased to RM5.3mil.
The group has proposed a final tax-exempt dividend of one sen per share for FY23 subject to shareholders’ approval, added with the first tax-exempt interim of one sen per share paid in November 2022, bringing the total dividend payout to two sen per share for FY23.