PTT Synergy Group Berhad's (KLSE:PTT) Earnings Are Weaker Than They Seem
PTT Synergy Group Berhad's (KLSE:PTT) robust earnings report didn't manage to move the market for its stock. We did some digging, and we found some concerning factors in the details.
The Impact Of Unusual Items On Profit
For anyone who wants to understand PTT Synergy Group Berhad's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from RM69m worth of unusual items. We can't deny that higher profits generally leave us optimistic, but we'd prefer it if the profit were to be sustainable. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. Which is hardly surprising, given the name. PTT Synergy Group Berhad had a rather significant contribution from unusual items relative to its profit to September 2025. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.
Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of PTT Synergy Group Berhad.
Our Take On PTT Synergy Group Berhad's Profit Performance
As previously mentioned, PTT Synergy Group Berhad's large boost from unusual items won't be there indefinitely, so its statutory earnings are probably a poor guide to its underlying profitability. As a result, we think it may well be the case that PTT Synergy Group Berhad's underlying earnings power is lower than its statutory profit. But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you'd like to know more about PTT Synergy Group Berhad as a business, it's important to be aware of any risks it's facing. To help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in PTT Synergy Group Berhad.
This note has only looked at a single factor that sheds light on the nature of PTT Synergy Group Berhad's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
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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.