PGF buoyed by demand for insulation glass wool

PETALING JAYA: PGF Capital Bhd is expected to be supported by robust demand for insulation glass wool, according to TA Research.

In a report, the research house estimated the group’s quarterly net profit to fall between RM5mil and RM7mil, representing 14% to 20% of its full-year FY26 forecast.

The group is also expected to stage a turnaround on a quarterly basis from the RM1.9mil core loss reported in 4Q25, which was impacted by seasonal factors and higher tax expenses.

However, TA Research cautioned that earnings growth is likely to be curbed by production capacity constraints.

Nonetheless, export prospects remained favourable particularly in its Australia market.

It stated that the new rental housing regulations introduced by the Australian government, including mandatory ceiling insulation for homes starting 2027, are expected to further boost demand for insulation products.

Under the new standards, homes must meet minimum energy efficiency requirements to be eligible for leasing. The mandate includes ceiling insulation and building electrification upgrades such as electric heating, cooling and hot water systems.

Additionally, the research house noted that average selling prices remained firm at RM6 per kg as China’s dumping activity is not prevalent in Australia.

In an effort to expand its capacity, PGF is constructing a new manufacturing facility at the Kulim East Industrial Park in Kedah to support demand.