PULAU PINANG: Main Market-listed leading insulation producer in Southeast Asia, PGF Capital Bhd, recorded revenue of RM167.9 million for the financial year ended February 28, 2026 (FY26), representing an 8.3% year-on-year (YoY) increase from RM155.0 million in FY25.
This growth was primarily driven by higher sales contributions from the group’s core insulation business.
The group reported a profit before tax (PBT) of RM36.9 million for the year, compared with RM47.0 million in FY25.
FY26 PBT was supported by an unrealised foreign exchange gain of RM7.9 million arising from the strengthening of the ringgit, partially offset by a mark-to-market unrealised loss of RM4.1 million on cross-currency swap facilities secured to finance the insulation segment’s expansion plan.
Profit after tax (PAT) stood at RM26.0 million in FY26, compared with RM33.9 million recorded in the preceding year.
FY25 figure included a one-off reversal of impairment loss on land held for property development.
Excluding this non-recurring item and its related tax impact, the adjusted PAT for the preceding year would have been RM19.0 million, indicating a stronger underlying performance in FY26.
The Insulation segment remained the primary revenue driver during the financial year under review, contributing RM167.2 million, or 99.6%, to total revenue.
The balance of RM0.7 million, or 0.4%, was derived from investment holdings and other segments.
Executive director and group CEO Fong Wern Sheng said the group achieved revenue of RM167.9 million in FY26, especially given the challenging global operating landscape.
“This demonstrates the resilient and robust demand for our insulation products, underpinned by the increasing role of insulation as a necessity as energy efficiency standards tighten and carbon considerations become more embedded across our key markets.
“We are actively scaling our capabilities to capture this structural shift. With our sandwich panels now certified by SIRIM and BOMBA, we are also expanding into higher-specification applications, such as data centres. In parallel, our new insulation plant in Kulim is expected to commence in the second half of the calendar year 2026. This will position us to scale efficiently in line with demand.
“While recent geopolitical developments, particularly in the Middle East, have introduced renewed volatility in energy prices, we are proactively strengthening our operational discipline and cost management. This allows us to remain resilient while continuing to invest in growth.
“Overall, we are positive in the long-term outlook of our Insulation business and our ability to deliver sustainable value as regulatory and structural demand continues to build,” he said.
For Q4 FY26, the group’s revenue increased by 12.2% YoY to RM37.8 million from RM33.7 million in Q4 FY25, supported by ongoing demand in key markets.
PAT stood at RM8.0 million, compared to RM13.9 million in the corresponding quarter, which included a one-off reversal of impairment loss on land.
With a net gearing of 0.4 times and net assets per share of RM1.48 as at the end of FY26, the group’s balance sheet remained solid. It continued to generate a healthy net operating cash flow of RM30.7 million during the year under review.
The board has proposed a first and final dividend of 3.5 sen per share for FY26, subject to shareholders’ approval at the upcoming annual general meeting.
The dividend is a 26.1% payout, amounting to RM6.8 million.
