PGF Capital kicks off new financial year with 11.9% y-o-y growth in net profit to RM7.5m for 1QFY26
While revenue improved moderately, profit after tax rose 11.9% year-on-year (YoY) to RM7.5 million from RM6.7 million over the same quarter last year. The improvement in bottom line performance was largely attributable to thesustained demand of the Insulation and Related Products (Insulation segment) from the Oceania market and the Group's emphasis on cost efficiency, which contributed to lower operating expenses.
This was partially offset by a mark-to-market unrealised loss of RM0.6 million on a cross-currency swap facilities (MTM Unrealised Loss) in the current quarter.
In 1QFY26, the Group in a statement today said revenue composition remained consistent, with the Insulation segment accounting for 99.7% of the total revenue. The remaining contribution came from property development, investment holding, and other segments.
'We are pleased to begin the new financial year with a solid set of performance, led by thecontinued strength of our Insulation segment,' said executive director and Group CEO Fong Wern Sheng.
'We continue to observe healthy demand in the Oceania market, particularly in Australia, supported by clear policy direction, including updated building codes and the national target of delivering 1.2 million new homes by 2029. The recently announced Victorian Energy Upgrades programme, which offers 50% costreductions for ceiling insulation, adds further optimism as we look toward 2026.'
While the Group achieved YoY growth, he added, performance for the quarter was partially impacted by the recent gas pipeline incident in Putra Heights, Selangor, which temporarily disrupted their production activities and export sales.
Separately, he said, their new mineral wool sandwich panels have been certified by Standards and Industrial Research Institute of Malaysia and are now pending approval from the Fire Department of Malaysia.
'The Group's capacity expansion is progressing as planned, with the construction of its new 40,000 metric-tonne plant (New Plant) in Kulim East Industrial Park, Kedah, proceeding on schedule. Commercial operations are targeted to begin in the first half of 2026. In support of this investment, the project has received approval for the Northern Corridor Economic Region (NCER) Tax Incentive Package, granting a five plus five years corporate tax holiday. This incentive is expected to enhance the Group's financial performance in the coming years,' said Fong.
Meanwhile, on the topic of reciprocal tariffs by the United States (US), Fong expressed that PGF Capital does not anticipate significant impact on its revenue or purchases, given that export activities are predominantly concentrated in the Oceania region, which contributes over 70.0% of total export volume, with another 20.0% coming from domestic sales. The Group has no direct export activities to the US.
As for the property development segment, PGF Capital's efforts to activate its landbank in
Tanjong Malim, Perak, have taken a step forward with the receipt of conditional Planning
Approval (Kebenaran Merancang) for the Phase 1 development. The project, undertaken via a land sale arrangement with Malvest Properties Sdn Bhd (Malvest) will consist of 1,808
residential and commercial units. It forms part of the broader initiative to support the
government's vision of transforming Proton City into an Automotive High-Tech Valley. The Group is currently addressing the infrastructure conditions imposed to facilitate the
commencement of the project.
PGF Capital maintained a solid financial position in the first quarter of 2026, with a net gearing ratio of 0.15 times and net assets per share of RM1.39. The Group also generated a healthy net operating cash flow of RM3.4 million during the quarter, reflecting continued strength in its core operations.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
14 hours ago
- Free Malaysia Today
Gold gains traction in Islamic investing as rally spurs interest
Gold has been one of the strongest-performing major commodities over the past year. (File pic)) PETALING JAYA : In a small town an hour's drive from Malaysia's capital, a new, high-security vault illustrates the growing popularity of gold products and services designed to cater to Islamic principles. Run by a unit of Loomis AB, the Swedish cash- and bullion-handling company, together with local security firm E2S Group, the 20-tonne facility in Nilai represents a push to tap into the nation's burgeoning Islamic bullion sector. 'There's a desire among local bullion dealers to have proper storage facilities,' Jeremy Beh, Loomis International's country head in Singapore, said in an interview, before the site was inaugurated to an audience of traders, refiners and bankers last week. 'Several local banks have recently rolled out so-called halal gold investment products as demand has surged,' he said. Gold has been one of the strongest-performing major commodities over the past year, supported by booming central bank and investment demand. Prices last set a record in April, and with the US Federal Reserve now widely expected to reduce interest rates, further gains are widely expected. Among forecasters, Goldman Sachs Group Inc has flagged a push to US$4,000 an ounce. Islamic finance was estimated as a US$5.5 trillion global market last year, and that may rise to US$7.5 trillion by 2028, according to Standard Chartered Plc. Gold should be a good fit given that one of the metal's main characteristics as an asset is that it doesn't typically pay interest, in line with Islamic practice. However, there are other considerations: bullion investments must be tied to specific bars, and during transactions, there needs to be an immediate transfer of ownership. That conflicts with some practices in parts of the global market, where balances are sometimes not linked to identifiable assets. 'Gold really ticks a lot of boxes for an investor with Islamic principles in mind,' said Louis Hems, commercial director of the Dubai Gold and Commodity Exchange, which has a Shariah-compliant gold contract. 'There's no interest paid on it. There's an underlying asset,' he added. Momentum for the Shariah-compliant gold is growing in Malaysia, as well as other nations. A halal gold-backed exchange-traded fund listed in Malaysia reached record holdings this year, while trading volume on the Dubai exchange's Islamic Gold Spot Contract nearly tripled in the first half. 'Demand for gold-investment products is very high,' said Mokhrazinim Mokhtar, senior vice-president of retail deposit and wealth management at Bank Rakyat, which introduced a product in April enabling customers to invest online in physical gold, while adhering to Shariah principles. 'Customers are seen shifting their savings from cash to gold,' she said. Still, a lack of understanding remains a hurdle, according to Andrew Naylor, head of Middle East and public policy at the World Gold Council, who was involved in developing guidelines for Shariah-compliant gold. 'There's a lot of assumptions that, unless you can take the gold home, it is not Shariah-compliant,' said Naylor. 'More work needs to be done to raise awareness,' he said.
Barnama
19 hours ago
- Barnama
STAR Reviews AI Investment, Ensure More Efficient Government
PUTRAJAYA, Aug 19 (Bernama) -- The Special Task Force on Agency Reform (STAR) is conducting a comprehensive review of the use of artificial intelligence (AI) to ensure that investments in the technology genuinely enhance the efficiency of government administration and service delivery. In a statement today, STAR said an analysis of the 'AI Productivity Paradox' presented at its latest meeting revealed that while AI can save time, it has not yet translated into higher national productivity. STAR Meeting No. 7 of 2025, held yesterday and chaired by Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, discussed the progress of STAR projects, reviewed issues related to administrative efficiency, and considered several strategic initiatives. Among the matters addressed were the management of government quarters, border security, disruption of the immigration system, and technological challenges in public administration. The meeting also emphasised the importance of strengthening the integrity of the public service, especially at the country's entry points, in line with the government's efforts to ensure transparent and accountable governance STAR will continue to examine factors affecting service delivery effectiveness and improve operational procedures and support systems to align with international best practices. During the meeting, three ministries received Bureaucratic Reform (RKB) certificates of appreciation. They are the Ministry of Women, Family and Community Development (KPWKM), for digitalising social work courses, achieving annual compliance cost savings of RM150,000 and the Ministry of Education (MOE) for reducing the appeal process for admission to Matriculation Colleges from 12 working days to just five, resulting in annual savings of RM7.5 million. The other is the Ministry of Plantations and Commodities for improving the Malaysian Rubber Board's licensing and permit services, which led to a 68 per cent reduction in compliance costs and annual savings of RM11.4 million.
Malay Mail
2 days ago
- Malay Mail
AI Agent Drives New Growth︱SY Holdings Reports 2025 Interim Results: Net Profit Up 23%; E-commerce Business Volume Surges Eightfold
SHENZHEN, CHINA - EQS Newswire - 18 August 2025 - SY Holdings Group Limited ("SY Holdings" or the "Company"; Stock Code: a digital intelligence technology company specialising in "AI + industrial supply chain" solutions, announced its interim results for the six months ended 30 June to the announcement, SY Holdings has been deeply implementing its "AI+" strategy, continuously advancing the commercialisation of AI Agent applications to support the growth of SMEs. As of 30 June 2025, the Company recorded a net profit of over RMB 2.03 billion, marking a year-on-year increase of 23%.Leveraging AI Agent and other advanced technologies, based on comprehensive integration of industry ecosystems and data, SY Holdings fully exploits the benefits of its distinctive risk control model characterised by a "transaction-focused, asset-light" approach. The Company helps SMEs in the supply chain to "secure orders and access funding," while offering efficient, cost-effective, and high-quality financing facilitation the six months ended 30 June 2025, the Company reported revenue and income from core business activities of approximately RMB 0.4 billion. The platform facilitated cumulative funding turnover of more than RMB 278.0 billion, a rise of over 29% compared to the same period last year, and served more than 19,100 customers in total, an increase of over 14% year-on-year. SMEs customers accounted for over 97% of the total customer base, with first-time borrowers making up more than 30%. The Company's platform has helped customers reduce financing costs by at least 30%.SY Holdings continued to develop its platform-based strategy, with its self-developed AI Agent—"SY Cloud Platform"—as the central hub to establish an efficient and intelligent matching mechanism between the industry and funding partners, supporting the rapid growth of its "asset-light" operating of 30 June 2025, the platform had established strategic partnerships with over 10 Fortune Global 500 companies and developed relationships with more than 180 funding partners, representing an increase of 31% year-on-year, positioning itself as a key partner for financial institutions in promoting inclusive finance. Based on this foundation, platform-based facilitation business accounted for approximately 88% of the total business volume, up 28 percentage points from the same period last technology service revenue reached approximately RMB 0.21 billion, showing a year-on-year increase of 37% and constituting 52% of total revenue—outpacing its growth target six months early and poised to significantly boost future earnings.2025 is seen as the inaugural year for widespread commercial use of AI Agents. SY Cloud Platform has thoroughly integrated with popular open-source large language models like DeepSeek, Qwen, and Doubao, leading the way in offering diverse value-add services to its ecosystem example, in the infrastructure sector, the platform can automatically gather tender and procurement information through multiple channels, perform data cleaning and data organization, and convert it into a standard format that is easy to analyse, covering key details such as project type, scale, budget, and technical requirements. By leveraging information on suppliers' business scope, production capacity, qualification level, and historical bidding records, the platform delivers highly relevant tender opportunities directly to suitable the platform offers suppliers assistance with bidding document preparation, analysis of the competitive landscape, and pricing strategy advice, enabling them to enhance both bidding efficiency and success rates. By 30 June 2025, SY Holdings reported its initial revenue from AI-driven order acquisition, with income from AI "order-matching" services surpassing RMB 400, an era of rapid advances in AI technology, SY Holdings has continued to increase its investment in research and development. As of 30 June 2025, the Company's cumulative R&D investment was close to RMB 270 million, with R&D personnel accounting for approximately 30% of the total staff. The Company holds 88 national invention patents and computer software copyrights, covering multiple fields including AI, big data, and cloud on this foundation, SY Holdings has developed and deployed a range of innovative applications, such as intelligent document sorting, intelligent contract review, and AI-powered customer service, collaborating closely with ecosystem partners to achieve cost reduction and efficiency improvements. During the reporting period, the average asset service volume per capital increased by approximately 27%, while our customers' sales volume grew by over 60% strong confidence in its long-term value and high regard for its future growth prospects, SY Holdings has announced a special dividend of RMB 600 million for 2025 and committed to maintaining a dividend payout ratio of no less than 90% for the financial years 2025 and 2026, thus continuing to share the company's growth outcomes with its shareholders. Based on this pledge, the total dividend payout for 2025 will be approximately RMB 950 million. As of the closing price on the date of this results announcement, the dividend yield is estimated at around 8%.SY Holdings has received unanimous backing from prominent institutions—including CICC; Tianfeng Securities, CSC(China Securities); SDIC Securities; Soochow Securities; Sinolink Securities; GF Securities; Guolian Securities; Phillip Securities; and Zheshang Securities—each assigning the Company a 'Buy' or 'Outperform' rating, with the highest target price of HK$ deepening its presence in key national industries such as infrastructure, healthcare, pharmaceuticals, and commodities, SY Holdings is also actively expanding into strategic emerging sectors including e-commerce and robotics. These emerging sectors together represent a potential market size of more than RMB 70 trillion and a customer base of over 26,000 thousand the e-commerce sector, SY Holdings has expanded its coverage to six leading platforms, including Douyin, SHEIN, Shopee, Kuaishou, WeChat Channels, Poizon. As of 30 June 2025, the company's cumulative e-commerce financing facilitation volume surpassed RMB 2.8 billion, reflecting an almost eightfold increase SY Holdings completed system integration with a leading global fashion e-commerce platform and successfully embedded end-to-end online services within the platform. Through this integration, e-commerce merchants can utilise their "shipped but pending settlement orders" to create a virtuous cycle of "sales – early payment collection – repurchase – further sales," thereby further expanding the growth potential of SY Holdings' e-commerce sector the robotics sector, SY Holdings has formed a strategic partnership with Standard Robots (Wuxi) Co., Ltd., a global leader in industrial intelligent robotics, through investment, successfully launching its first innovative supply chain services transaction in the robotics industry. This collaboration has laid the groundwork for SY Holdings to expand into a new business segment, while the Company actively explores partnership models with enterprises engaged in industrial, service, and specialised robotics to accelerate its presence in China's robotics market, which is valued at over RMB 190 terms of strategic investment, SY Holdings has brought in XtalPi Inc. (Stock Code: as the "first AI-for-Science stock"—and Be Friends Holding Ltd. (Stock Code: a leading cross-platform live-streaming e-commerce company, as strategic investors. This move aims to bolster the company's AI R&D capabilities, develop vertical-industry AI Agents, and rapidly penetrate the live-streaming e-commerce terms of computing power reserves, SY Holdings has secured support from the Wuxi Economic Development Zone and officially connected to the Xuelang Computing Center, NVIDIA AI Computing Center, and Sugon Advanced Computing Center, all operated by Wuxi Digital Whale Technology Co., Ltd. ("Digital Whale"). Digital Whale currently has more than 60 H800 servers in reserve, providing intelligent computing capacity exceeding 1, these resources, SY Holdings will enable ecosystem partners to access sufficient intelligent computing capacity to meet advanced computing requirements across multiple scenarios, including model training and application deployment. The Company will continue to focus on the R&D and application of AI Agents, with operational efficiency expected to improve further in 2025. Average service volume per capita is projected to expand significantly, providing strong support for the Group's profit the international order is experiencing significant and complex changes, with the ongoing restructuring of global supply chains. Issues such as notable exchange rate volatility, low payment efficiency, and difficult market access have become key obstacles limiting the globalization of SY Holdings set up its international headquarters in Singapore to further grow its presence in overseas markets and to explore innovative uses for Web 3.0 and international business development, SY Holdings has established a strategic partnership with Xinbada (Guangzhou) Technology Co., Ltd., a leading supplier to SHEIN, through investment. The company will support the development of flexible, intelligent factories in overseas markets such as Turkey, Southeast Asia, and Morocco. Additionally, it will utilise the supplier's role within the industrial ecosystem serving cross-border e-commerce platforms including SHEIN, Temu, Cider, and PatPat to speed up the global growth of China's apparel manufacturing hubs and cross-border e-commerce SY Holdings has been continuously expanding its business layout in Southeast Asia and has completed its first international financing transaction. Using its international market resources and platform connectivity, the Company will also support key pharmaceutical enterprises in processing and fulfilling export orders for herbal is worth noting that stablecoins, as an emerging payment and settlement instrument pegged to fiat currencies, leverage blockchain's peer-to-peer transfer capabilities to enable instant "payment-equals-settlement" clearing, while reducing transaction costs to as low as 0.1%. SY Holdings plans to explore innovative applications of stablecoins in facilitating international supply chain finance services, aiming to improve capital turnover, lower cross-border payment costs, and reduce foreign exchange volatility risks. In doing so, the Company seeks to provide an optimal customer experience characterised by speed, efficiency, quality, and cost-effectiveness, and to act as a bridge for SMEs in the Asia-Pacific region as they expand ahead, as AI and Web 3.0 become increasingly integrated, the technological foundations of the digital world are undergoing a profound transformation. SY Holdings will continue to leverage technology to connect industries and ecosystems, working together with SMEs to reshape global supply #SYHoldings The issuer is solely responsible for the content of this announcement.
