KUALA LUMPUR (April 27): PGF Capital Bhd (KL:PGF), which manufactures and sells insulation material, posted a 41.8% decline in the fourth financial quarter ended Feb 28, 2026 (4QFY2026), due to the absence of a RM19.6 million one-off gain recognised in the previous year.

Net profit for 4QFY2026 declined to RM8.08 million from RM13.9 million in the corresponding quarter last year, when it recognised the one-off impairment reversal on land held for property development, PGF Capital’s filing with Bursa Malaysia on Monday showed.

Quarterly revenue rose 12.2% to RM37.78 million, mainly due to steady demand for insulation products, especially from Oceania.

Revenue from the insulation segment rose to RM37.56 million in 4Q 2026 from RM33.55 million. Reported profit before tax increased to RM12.41 million from RM2.54 million, mainly due to a large foreign exchange gain, partly offset by some losses and inventory write-downs. However, excluding these one-off items, the actual operating profit was RM4.58 million in 4Q 2026, slightly lower than RM5.53 million in 4Q 2025. 

The group’s property development segment is yet to report sales.

PGF Capital has proposed a final dividend of 3.5 sen for FY2026.

Regarding its prospects for FY2027, the group said it expects the insulation segment to continue to be its primary earnings driver supported by regulatory-driven demand for energy efficiency across its key markets.

It said its new 40,000MT capacity plant in Kedah is also nearing completion and remains on track to begin operations in the second half of 2026, significantly scaling up its production capabilities.

"Given the recent escalation of hostilities in the Middle East and the resultant spike in global energy prices, the operating environment is expected to be more challenging. The group continues to monitor geopolitical developments closely and remains agile in its operations to enhance resilience and navigate potential cost pressures," it added.

PGF Capital said it is actively seeking investments in eco-tourism and agriculture to leverage on its land holdings.
For its property development segment, the group said its joint development with Malvest Properties in Tanjung Malim has received conditional approval and began early works.

In Kulim Hi-Tech Park, its joint venture with Nexel Development KHTP Sdn Bhd plans a mixed-use project to meet growing demand, with construction expected in 2026 subject to approvals. 

For the full 12-month period, the group’s net profit declined 23.35% to RM25.99 million compared with RM33.87 million in financial year 2025, while revenue rose 8.3% to RM167.88 million from RM155.01 million previously.

At Monday’s close, PGF Capital’s shares were up 4.29% to RM1.70, giving the group a market capitalisation of RM329.9 million.