01 Aug 2023 PGF Capital’s Q1 net earnings slide to RM3.94mil
Source: https://www.nst.com.my/business/2023/08/937566/pgf-capitals-q1-net-earnings-slide-rm394mil%C2%A0
KUALA LUMPUR: PGF Capital Bhd (PCB) posted a net profit of RM3.94 million for the first quarter (Q1) ended February 29, 2024 (FY24), lower than the RM5.00 million recorded in the same quarter last year.
Revenue for the quarter was 10 per cent higher year-on-year (YoY) to RM28.5 million from RM25.9 million in the same quarter last year, driven by a higher average selling price.
The company’s fibre glasswool and related products segment contributed most of the PCB’s revenue in Q1 FY24.
Group chief executive officer Fong Wern Sheng looking ahead, PCB expects its top and bottom line to remain flat due to the softening of Malaysia’s construction industry, high interest rates and the collapse of major building companies in Australia caused by supply chain disruptions, skilled labour shortages and rising input costs.
He said that to address these difficulties, the Australian government has decided to delay the mandatory adoption of the revised National Construction Code, which includes higher insulation requirements, to June 1, 2024, from the original dateline of May 1, 2023.
“This measure, among many others, aims to support the industry’s recovery during these challenging times.
“Considering these circumstances, we anticipate a slight setback in demand for our products during the second quarter (Q2) of FY24.
“However, it is important to note that we are not directly exposed to any credit risk from the construction companies impacted by these challenges.
“We remain optimistic that demand will recover and rebound from the third quarter (Q3) of FY24 onwards as these challenges diminish,” he said in a statement.
PCB’s Q1 FY24 total revenue grew 13.9 per cent quarter-on-quarter (QoQ) from RM25.0 million registered in Q4 FY23.
On a segmental basis, the insulation segment generated higher revenue, up 18.5 per cent QoQ from Q4 FY23’s RM23.9 million due to the increase in sales volume.
