PENANG: Main Market-listed insulation producer in Southeast Asia, PGF Capital Berhad, began the new financial year with a revenue of RM40.6 million in its first quarter (1QFY26) results for the financial year ended Feb 28, 2026 (FY26) compared to RM40.5 million in 1QFY25.
While revenue improved moderately, profit after tax rose 11.9% year-on-year (YoY) to RM7.5 million from RM6.7 million over the same quarter last year. The improvement in bottom line performance was largely attributable to thesustained demand of the Insulation and Related Products (Insulation segment) from the Oceania market and the Group’s emphasis on cost efficiency, which contributed to lower operating expenses.
This was partially offset by a mark-to-market unrealised loss of RM0.6 million on a cross-currency swap facilities (MTM Unrealised Loss) in the current quarter.
In 1QFY26, the Group in a statement today said revenue composition remained consistent, with the Insulation segment accounting for 99.7% of the total revenue. The remaining contribution came from property development, investment holding, and other segments.
“We are pleased to begin the new financial year with a solid set of performance, led by thecontinued strength of our Insulation segment,” said executive director and Group CEO Fong Wern Sheng.
“We continue to observe healthy demand in the Oceania market, particularly in Australia, supported by clear policy direction, including updated building codes and the national target of delivering 1.2 million new homes by 2029. The recently announced Victorian Energy Upgrades programme, which offers 50% costreductions for ceiling insulation, adds further optimism as we look toward 2026.”
While the Group achieved YoY growth, he added, performance for the quarter was partially impacted by the recent gas pipeline incident in Putra Heights, Selangor, which temporarily disrupted their production activities and export sales.
Separately, he said, their new mineral wool sandwich panels have been certified by Standards and Industrial Research Institute of Malaysia and are now pending approval from the Fire Department of Malaysia.
“The Group’s capacity expansion is progressing as planned, with the construction of its new 40,000 metric-tonne plant (New Plant) in Kulim East Industrial Park, Kedah, proceeding on schedule. Commercial operations are targeted to begin in the first half of 2026. In support of this investment, the project has received approval for the Northern Corridor Economic Region (NCER) Tax Incentive Package, granting a five plus five years corporate tax holiday. This incentive is expected to enhance the Group’s financial performance in the coming years,” said Fong.
Meanwhile, on the topic of reciprocal tariffs by the United States (US), Fong expressed that PGF Capital does not anticipate significant impact on its revenue or purchases, given that export activities are predominantly concentrated in the Oceania region, which contributes over 70.0% of total export volume, with another 20.0% coming from domestic sales. The Group has no direct export activities to the US.
As for the property development segment, PGF Capital’s efforts to activate its landbank in
Tanjong Malim, Perak, have taken a step forward with the receipt of conditional Planning
Approval (Kebenaran Merancang) for the Phase 1 development. The project, undertaken via a land sale arrangement with Malvest Properties Sdn Bhd (Malvest) will consist of 1,808
residential and commercial units. It forms part of the broader initiative to support the
government’s vision of transforming Proton City into an Automotive High-Tech Valley. The Group is currently addressing the infrastructure conditions imposed to facilitate the
commencement of the project.
PGF Capital maintained a solid financial position in the first quarter of 2026, with a net gearing ratio of 0.15 times and net assets per share of RM1.39. The Group also generated a healthy net operating cash flow of RM3.4 million during the quarter, reflecting continued strength in its core operations.
