31 Oct 2023 PGF Capital’s net profit dropped 28.8pc to RM2.94mil in Q2
KUALA LUMPUR: PGF Capital Bhd’s net profit dropped 28.8 per cent to RM2.94 million in the second quarter (Q2) ended August 31, 2023 (FY24) from RM4.13 million in the same period last year due to the shutdown of one of the company’s production lines for repair and maintenance.
The shutdown led to lower output generated, coupled with plant and equipment written off, which amounted to RM2.40 million in the current quarter.
Revenue for the quarter rose 34 per cent to RM30.14 million from RM22.48 million a year ago, buoyed by the insulation segment.
The insulation segment achieved revenue of RM29.20 million, which is 31.57 per cent higher than the preceding quarter’s RM22.19 million due to higher sales revenue generated from our Australian market.
For the cumulative six-month period, the company’s net profit dropped 24.6 per cent to RM6.89 million versus RM9.13 million a year ago.
Revenue for the period increased to RM58.62 million from RM48.38 million a year ago.
The property development segment recorded revenue and pre-tax profit of RM0.65 million and RM0.28 million, respectively, in the current quarter.
The company noted this marked an improvement compared to the loss before tax of RM0.13 million in the corresponding quarter of the previous year, in tandem with the revenue recorded.
Group chief executive officer Fong Wern Sheng said the company is observing initial indications of recovery in the Australian building industry, supported by government initiatives in response to challenges faced by the industry this year.
“The recent announcement by the Australian government to allocate funds for constructing one million new, well-located homes over five years, commencing in 2024, is anticipated to drive greater demand for our insulation products.
“Domestically, we have seen signs of renewed interest within the property development and construction sectors in Johor.
“Therefore, we are anticipating an uptick in demand for our products in the Malaysian market,” he said in a statement.
Fong added that given these favourable circumstances, the company’s insulation business is expected to continue being the key driver of growth for PGF Capital during the second half of the financial year.