The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
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 Privasia Technology Berhad (KLSE:PRIVA). 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.
Strong earnings per share (EPS) results are an indicator of a company achieving solid profits, which investors look upon favourably and so the share price tends to reflect great EPS performance. Which is why EPS growth is looked upon so favourably. It is awe-striking that Privasia Technology Berhad’s EPS went from RM0.00066 to RM0.0052 in just one year. Even though that growth rate may not be repeated, that looks like a breakout improvement.
One way to double-check a company’s growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. Unfortunately, revenue is down and so are margins. That will not make it easy to grow profits, to say the least.
The chart below shows how the company’s bottom and top lines have progressed over time. For finer detail, click on the image.
KLSE:PRIVA Earnings and Revenue History August 1st 2025
See our latest analysis for Privasia Technology Berhad
Privasia Technology Berhad isn’t a huge company, given its market capitalisation of RM54m. That makes it extra important to check on its balance sheet strength.
Seeing insiders owning a large portion of the shares on issue is often a good sign. Their incentives will be aligned with the investors and there’s less of a probability in a sudden sell-off that would impact the share price. So we’re pleased to report that Privasia Technology Berhad insiders own a meaningful share of the business. Owning 42% of the company, insiders have plenty riding on the performance of the the share price. This should be a welcoming sign for investors because it suggests that the people making the decisions are also impacted by their choices. Although, with Privasia Technology Berhad being valued at RM54m, this is a small company we’re talking about. So this large proportion of shares owned by insiders only amounts to RM23m. That might not be a huge sum but it should be enough to keep insiders motivated!
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