PGF Capital’s Sees Robust Prospects For Its Insulation, Property Segments For FY24

PGF Capital’s Sees Robust Prospects For Its Insulation, Property Segments For FY24


PGF Capital Berhad (PGF Capital) maintains a steady outlook for FY24 and foresees continued demand for its fibre glass wool and other related products, which serves as a key driver of profitability. The Group  also targets to obtain the necessary approvals to proceed with the planned development of a  township in Tanjong Malim, Perak.

The Main Market-listed leading insulation producer in Southeast  Asia today (July 28) concluded its Annual General Meeting (AGM) for its financial period ended 28 February  2023 (“FY23”). All resolutions were approved by the shareholders.

Fibre Glass Wool and Related Products (Insulation) Segment

PGF Capital expects minimal changes in the geographical and revenue contributions from the  Insulation Segment in the current financial year ending 29 February 2024 (“FY24”). With the  gradual decrease in ocean freight costs, the group expects profit margins to improve with  reduced operating costs.

Additionally, with newly established warehouses in Australia, PGF Capital aims to enhance its local customer service and distribution network, capturing a larger  share of the Oceania market.

Australia and New Zealand, PGF Capital’s primary markets, have stringent sustainable living  requirements that drive consistent demand for insulation products. With each revision of building  codes to meet higher standards, the need for insulation remains.

Having said that, the Australian  property market is currently experiencing a slowdown, particularly in new housing projects. To address the challenging business conditions, the Australian Government has made a decision  to postpone the implementation of the revised building code, which includes higher insulation  requirements.

The enforcement date has been pushed back from 1 May 2023 to 1 June 2024..

Nevertheless, the retrofitting segment is expected to provide support to the overall performance  of the business segment. Existing properties require insulation upgrades to meet the revised  standards, thus sustaining demand in that sector.

Property Development

PGF Capital owns an approximately 1,311.1 acres of leasehold land in Tanjong Malim, Perak (the Land), which is strategically located next to the Malaysian Government’s proposed Automotive High-Tech Valley (AHTV).

The Group aims to develop  the Land to complement the Government’s initiative to transform Tanjong Malim into an AHTV for new energy vehicle productions and enhance national car manufacturer, Proton’s Tanjong  Malim plant into a regional hub with investment from Chinese automaker, Zhejiang Geely  Holding Group Co Ltd.

Additionally, the Group is currently in the process of applying for Planning Permission for a 45.0- acre land designated for the development of a township in collaboration with Malvest Properties  Sdn Bhd.

The Group targets to obtain the necessary approval by FY24/FY25 following the  submission of the masterplan rezoning to realign with long-term local plan. In view of the dynamic  nature of the property market and the challenges posed by high inflationary and interest rate  pressures, the Group will time its property launches in line with demand and changing market  conditions.


The shareholders have approved a final tax-exempt dividend of 1.0 sen per share for FY23 during the AGM, bringing the total dividend payout to 2.0 sen for FY23.

From the financial year 2024 onwards, the Group aims to distribute a minimum of 25% of its net  profit as dividends, subject to the availability of sufficient distributable reserves and other  relevant factors to sustain its operations.

Listed on the Main Market of Bursa Malaysia Securities Berhad since 1990, PGF Capital  (formerly known as Poly-Glass Fibre (M) Berhad) is an investment holding company with its  subsidiaries involved in manufacturing of glass mineral wool insulation and property development. The Group is a leading insulation producer in Southeast Asia with an annual  installed capacity of 25,000 MT.

Approximately 70% of its products are exported overseas,  mainly to Australia and New Zealand. Meanwhile, under the property development arm, PGF Capital owns leasehold land named Diamond Creeks Country Retreat in  Tanjong Malim, Perak that is adjacent to Proton City/AHTV.

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