KUALA LUMPUR: PGF Capital Bhd, a Southeast Asia insulation producer, saw a 38 per cent decline in net profit to RM2.3 million for its financial year ended Feb 29, 2024, down from RM5.1 million net profit in the previous year.
The company, however, reported a 41.3 per cent increase in revenue to RM128.7 million from RM91.1 million a year earlier.
PGF Capital said the revenue surge was attributed to increased sales in the insulation business, driven by robust demand, notably from the Oceania market.
"Segmentally, the insulation and related products segment remained the key revenue driver for the company, accounting for 98.6 per cent of total revenue, while contributions from property development, investment holding and the others segment were negligible," it said.
PGF Capital group chief executive officer Fong Wern Sheng noted that there was strong demand growth in the insulation and related products segment, particularly from Australia and New Zealand, due to increased construction activities in those regions.
"Our plant which has 25,000 tonnes per year capacity is currently running at full capacity, and expansion plans are underway.
"Looking ahead, we expect the demand growth trajectory to sustain with the new energy standards under the revised Australian building code taking effect mid of this year, which will further spur the use of insulation products like ours," he said.
On its property development, Fong said in March 2024, the company secured rezoning approval from Majlis Daerah Tanjong Malim for a 1,311.8-hectare tract of land in Tanjung Malim, Perak located next to Proton City.
"The key highlight is the successful rezoning of residential land from 71.1 hectares to a substantial 577.5 hectares.
"Following the approval, we are preparing to launch Phase 1 development to address the housing requirement in Tanjung Malim," he said.
Fong stated that the company's objective is to utilise the land in line with the government's efforts to turn Tanjung Malim into an automotive high tech valley (AHTV) focused on new energy vehicle manufacturing.
Due to the proactive initiatives and preparations by the Perak syate government, Tanjung Malim is expected to accommodate around 50,000 individuals, including employees and their families, by 2027.
This will result in a considerable demand for adequate housing.