KUALA LUMPUR: PGF Capital Bhd's net profit rose 69.8 per cent year-on-year (YoY) to RM6.7 million in the first quarter ended May 31, 2024 (Q1FY25) versus RM3.95 million in the same period last year.
This was on the back of a higher revenue of RM40.5 million, up 42.1 per cent YoY from RM28.5 million in Q1FY24.
The higher revenue was largely attributed to higher sales contributions from the insulation segment on the back of strong demand from the Oceania market, PGF Capital said.
Segmentally, the insulation segment remained the core revenue generator, accounting for 99.5 per cent of total revenue.
The remaining business segments namely property development, investment holding and the others segments had negligible impact on overall performance.
Executive director and group chief executive officer Fong Wern Sheng said the result was the company's best quarterly performance in its corporate history on a core operating basis.
"This is also the culmination of the team's efforts following our strategy a few years ago to focus on key markets in the Oceania region, Singapore and Malaysia.
"In particular, the Oceania region is driving growth with robust demand for insulation materials, fuelled by an increase in construction activities and a revision to the Australian building code."
Fong added that the revision, which calls for greater energy efficiency in buildings, took effect in May 2024 and this had spurred the use of more insulation materials in building construction.
The company remains upbeat about its prospects for the rest of this financial year, underpinned by the sustained demand growth for insulation products as well as the full utilisation of its production capacity since late last year.
Recently, PGF Capital's wholly-owned PGF Global Distribution Sdn Bhd entered into a five-year distributorship agreement with Centria Building Material Manufacturing (Shanghai) Corp Ltd, a global leader in advanced building materials and solutions.
It gave the group the exclusive distribution rights for Centria's mineral wool sandwich panels in Malaysia.
Given Malaysia's significant boom in data center development, the sandwich panel is the ideal insulation material to help maintain optimal temperatures while reducing cooling costs and energy consumption, the company noted.
PGF Capital, in partnership with Malvest Properties Sdn Bhd, is poised to launch Phase 1 of its property development project by the end of 2024.
Aligned with the national initiative to transform Proton City into an Automotive High-Tech Valley, the initial phase will encompass a mix of residential and commercial units.