KUALA LUMPUR (Jan 22): PGF Capital Bhd's net profit rose over twofold in the third quarter ended Nov 30, 2023 (3QFY2024) to RM5.4 million from RM2.03 million a year ago, driven by higher revenue.

Earnings per share increased to 3.3 sen from 1.27 sen, according to the glass mineral wool insulation maker's stock exchange disclosure.

Quarterly revenue surged 106.75% to RM36.7 million from RM17.75 million in the previous corresponding period, primarily due to improved production output and increased sales in the Oceania market in the insulation segment.

PGF's insulation segment's profit before tax was RM7.44 million, compared to RM3.71 million previously, in line with the increase in revenue.

The group is also involved in property development, where it recorded a slight increase in its loss before tax to RM0.26 million compared to a loss before tax of RM0.23 million a year ago.

For the nine-month period (9MFY2024), PGF Capital's net profit increased by 10.1% to RM12.29 million from RM11.16 million in 9MFY2023, while revenue expanded 44.12% to RM95.32 million from RM66.14 million.

Looking ahead, PGF expressed cautious optimism about the future outlook of the insulation segment, anticipating it to be a key driver for the group's performance throughout the second half of the financial year.

"With the recovery of the construction sector in Australia, we anticipate further improvement in revenue contributions from this market," it said.

On its property development segment, PGF Capital said it is close to securing approval for the rezoning plan of Diamond Creeks Country Retreat's property development segment, anticipating the commencement of activities to optimise the land's value.

At noon break on Monday, shares in PGF Capital remained unchanged at RM1.39, giving the group a market capitalisation of RM227.39 million.