PULAU PINANG, 27 October 2025 – PGF Capital Berhad (宝利资本) (Stock Code: 8117), a leading Southeast Asian insulation producer listed on the Main Market of Bursa Malaysia, announced its results for the second quarter of the financial year ending 31 August 2025 (“2QFY26”), recording steady growth and affirming optimism for its expansion strategy in both the insulation and property segments.
Stronger Sales Driven by Steady Export Demand
For 2QFY26, the Group posted revenue of RM45.4 million, a 7.1% increase year-on-year compared with RM42.4 million in 2QFY25, supported by sustained demand for its insulation products across core markets. Profit before tax (PBT) stood at RM8.1 million, lower than RM9.5 million a year ago, primarily due to a mark-to-market (MTM) unrealised loss of RM1.1 million on cross-currency swap facilities tied to its expansion plans and higher operating costs.
Excluding the MTM unrealised loss, the Group’s adjusted PBT would have been RM9.2 million, demonstrating underlying operational resilience. Profit after tax (PAT) came in at RM5.0 million versus RM7.1 million in the previous corresponding quarter.
The Insulation segment continued to anchor the Group’s performance, contributing 99.7% of total revenue, while property development, investment holding and other operations made up the remaining share.
CEO: Export Momentum and Green Policy Support Create Multi-Year Growth Path
Executive Director and Group Chief Executive Officer Mr Fong Wern Sheng (邝汶城) noted that robust demand from Oceania, particularly Australia, remained a key driver, underpinned by national housing and energy-efficiency goals.
“Australia’s target to build 1.2 million new homes and its Victorian Energy Upgrades programme, which halves insulation installation costs, are keeping demand strong,” said Mr Fong.
He added that Malaysia’s Budget 2026 reinforces long-term confidence in sustainable materials.
“The introduction of a carbon tax next year, starting with the iron, steel and energy sectors, marks a decisive step toward low-carbon industry,” he said. “Together with the RM1 billion Green Technology Financing Scheme and 100% Green Investment Tax Allowance for MyHIJAU-certified products, Malaysia is signalling real momentum in the green-growth transition.”
Expansion in Kulim to Boost Capacity by 40,000 Tonnes
PGF Capital’s new production facility in Kulim, Kedah, remains on schedule for completion in the first half of 2026. The plant will increase annual output capacity by 40,000 metric tonnes to 65,000 metric tonnes, expanding the Group’s ability to serve regional markets.
The project also enjoys a five-plus-five-year corporate-tax holiday under the Northern Corridor Economic Region (NCER) incentive programme, positioning PGF Capital for stronger medium-term profitability once production ramps up.
Mr Fong also said that the Group foresees minimal exposure to the U.S. reciprocal tariffs introduced on 1 August 2025.
“We have no direct exports to the U.S., so we expect negligible impact,” he noted. “Nonetheless, we’re closely monitoring global supply-chain dynamics.”
Property Projects Poised to Capture Growth from EV and High-Tech Corridors
On its property development arm, PGF Capital said both its projects are advancing toward launch:
- Kulim Hi-Tech Park, Kedah, its joint venture Nexel Development KHTP Sdn Bhd is finalising a mixed-use development with an estimated GDV of RM600 million, targeted for soft launch in early 2026.
- Diamond Creeks Country Retreat, Tanjong Malim, Perak, Phase 1 has received conditional planning approval for 1,808 residential and commercial units, under a land-sale arrangement with Malvest Properties Sdn Bhd.
The Tanjong Malim project strategically aligns with the government’s Automotive High-Tech Valley (AHTV) plan. Nearby, BYD’s upcoming EV plant at KLK TechPark, slated for operations in 2026, is expected to boost residential and commercial demand, reinforcing PGF Capital’s long-term property value proposition.
Solid Fundamentals and Sustainable Growth Outlook
For the cumulative six-month period (1HFY26), PGF Capital posted revenue of RM86.0 million, up 3.7% YoY from RM82.9 million in 1HFY25. PBT stood at RM18.1 million (1HFY25: RM18.6 million). Excluding RM1.7 million MTM unrealised loss, adjusted PBT would have been RM19.8 million, with PAT of RM12.5 million (1HFY25: RM13.8 million).
The Group continues to maintain a healthy balance sheet with net gearing of 0.25 times and net assets per share of RM1.41 as at 31 August 2025, underscoring its financial strength to support both expansion and shareholder returns.
Looking Ahead
With its expansion on track, government-backed green-growth incentives, and proximity to new EV industrial clusters, PGF Capital appears well-positioned for sustained growth into FY26 and beyond.
Mr Fong summed up:
“We see clear structural demand for energy-efficient materials, both in Malaysia and abroad. PGF Capital’s strategic investments are designed to align with this green-growth era.”
