Press Metal Aluminium Holdings Berhad (KLSE:PMETAL) Ticks All The Boxes When It Comes To Earnings Growth
Investors are often guided by the idea of discovering ‘the next big thing’, even if that means buying ‘story stocks’ without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like Press Metal Aluminium Holdings Berhad (KLSE:PMETAL). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. We can see that in the last three years Press Metal Aluminium Holdings Berhad grew its EPS by 11% per year. That’s a pretty good rate, if the company can sustain it.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. Press Metal Aluminium Holdings Berhad maintained stable EBIT margins over the last year, all while growing revenue 5.6% to RM16b. That’s encouraging news for the company!
The chart below shows how the company’s bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
KLSE:PMETAL Earnings and Revenue History November 24th 2025
Owing to the size of Press Metal Aluminium Holdings Berhad, we wouldn’t expect insiders to hold a significant proportion of the company. But thanks to their investment in the company, it’s pleasing to see that there are still incentives to align their actions with the shareholders. We note that their impressive stake in the company is worth RM12b. That equates to 23% of the company, making insiders powerful and aligned with other shareholders. Looking very optimistic for investors.
It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. Our quick analysis into CEO remuneration would seem to indicate they are. The median total compensation for CEOs of companies similar in size to Press Metal Aluminium Holdings Berhad, with market caps over RM33b, is around RM6.1m.
Press Metal Aluminium Holdings Berhad’s CEO took home a total compensation package of RM2.8m in the year prior to December 2024. First impressions seem to indicate a compensation policy that is favourable to shareholders. While the level of CEO compensation shouldn’t be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally.
As previously touched on, Press Metal Aluminium Holdings Berhad is a growing business, which is encouraging. The growth of EPS may be the eye-catching headline for Press Metal Aluminium Holdings Berhad, but there’s more to bring joy for shareholders. Boasting both modest CEO pay and considerable insider ownership, you’d argue this one is worthy of the watchlist, at least. Of course, just because Press Metal Aluminium Holdings Berhad is growing does not mean it is undervalued. If you’re wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
