28 Apr 2023 PGF Capital sees near six-fold rise in profit on higher revenue
KUALA LUMPUR (April 28): Glass mineral wool insulation maker PGF Capital Bhd’s net profit for the fourth quarter ended Feb 28, 2023 (4QFY2023) jumped nearly six-fold to RM5.28 million, from RM901,000 a year ago, on higher revenue.
Earnings per share grew to 3.23 sen from 0.56 sen, the group said in a bourse filing.
Quarterly revenue rose 48.67% to RM24.98 million from RM16.8 million, mainly attributable to higher production and sales of insulation products.
For the full year, net profit expanded 8.6 times to RM16.44 million from RM1.95 million in FY2022, while revenue grew 58.3% to RM91.11 million from RM57.56 million.
The group has proposed a final tax-exempt dividend of one sen per share for FY2023. Adding the first tax-exempt interim dividend of one sen paid in November 2022, this brings total dividend payout of two sen for FY2023.
PGF’s insulation segment’s profit before tax was RM1.74 million, versus RM2.03 million previously, mainly due to elimination of unrealised profit of RM2.97 million for the inventories at related party.
The group is also in property development, where it registered a profit before tax of RM10.94 million for 4QFY2023, mainly due to the reversal of impairment loss of RM10.74 million on development properties, which was previously provided by its wholly owned subsidiary, Golden Approach Sdn Bhd.
In a statement, PGF said its balance sheet remained solid and lean with minimal net gearing of 0.07 times, backed by net assets per share of RM1.24 as at end of FY2023.
Its 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.
“The group is exploring several development opportunities for the land, whilst nurturing its agriculture, aquaculture and agrotourism activities to maximise the value of the land,” it said.
Moving forward, PGF executive chairman Fong Wern Sheng said the group is working hard to sustain its growth trajectory and upbeat on the group’s outlook as it expects rising demand for its products in anticipation of the enforcement of the National Construction Code and Building Code’s revisions in Australia and New Zealand.
“These revisions require more insulation to achieve higher energy efficiency ratings for their buildings. This regulatory change will certainly benefit us.
“To cater for the growing demand for insulation in the Oceanic region, we have set up warehouses in Brisbane and Melbourne, Australia to improve our distribution infrastructure. With stronger local presence in Australia, we can now provide swift delivery and better serve our customers,” he said.
PGF’s share price finished four sen or 2.8% higher at RM1.47 on Friday (April 28), valuing the group at RM240.14 million.