28 Apr 2023 PGF Capital hits record profit of RM16mil in FY2023
PETALING JAYA: PGF Capital Bhd, an insulation products manufacturer, posted a record high net profit of RM16.1 million for the financial year ended Feb 28 (FY2023).
This was a surge of over 700% from FY2022 when it posted a net profit of RM1.9 million.
For the fourth quarter (Q4 FY2023), net profit came in at RM5.2 million while revenue was RM24.9 million.
The insulation and related products division continued to drive the bulk of revenue, having contributed 97.4% to group turnover in FY2023.
It is also the largest contributor of profit by comparison to the property development as well as other (e.g. agriculture) segments.
The company proposed a final tax-exempt dividend of 1 sen per share for FY2023, subject to shareholders’ approval at the upcoming annual general meeting.
Adding the first tax-exempt interim dividend of 1 sen paid in November 2022, this brings the total dividend payout to 2 sen for FY2023.
The group’s balance sheet remained solid and lean with minimal net gearing of 0.07x, backed by net assets per share of RM1.24 as at end-FY2023.
Executive chairman Fong Wern Sheng was delighted with PGF Capital’s overall excellent financial performance for FY2023.
“The group’s robust revenue and profit expansion reflected the improved business landscape following the Covid-19 pandemic. Operationally, whilst there are inflationary pressures, these are mitigated by lower ocean freight cost, allowing us to remain competitive in the market,” he said.
Fong was upbeat on the outlook for the group, expecting rising demand for the products in anticipation of revisions in the National Construction Code and Building Code in Australia and New Zealand respectively.
“These revisions require more insulation to achieve higher energy efficiency ratings for their buildings. This regulatory change will certainly benefit us,” he said.
The lease of two warehouses in Brisbane and Melbourne in Australia have been finalised with stocks being shipped to those warehouses to service customers.
PGF Capital’s assets included the ownership of 1,311.15 acres of leasehold land named Diamond Creeks Country Retreat located in Tanjong Malim, Perak, which is adjacent to Proton City/Automotive High-Tech Valley.
For the agriculture segment, durian trees are continuously being replanted from the nursery to the designated orchard land.
Cash crops such as kumquat and passion fruit have been planted to generate cash flow for Diamond Creeks Eco Farm Sdn Bhd.
The group said they were exploring several development opportunities for the land, whilst nurturing its agriculture, aquaculture and agritourism activities to maximise the value of the land.
At the close of trade, PGF Capital’s share price moved 2.8% or 4 sen to RM1.47, giving it a market capitalisation of RM240.14 million.