Eversendai Corporation Berhad (KLSE:SENDAI): A Rising EPS Story That Investors Shouldn’t Overlook

For many beginner investors, a company with a flashy story but no profit history can be tempting. Yet as Peter Lynch cautioned in One Up On Wall Street, “Long shots almost never pay off.” Loss-making enterprises tend to burn through capital, leaving shareholders with little to show. Those who prefer a more grounded approach might find Eversendai Corporation Berhad (KLSE:SENDAI) a more compelling pick.

Eversendai, a Malaysian structural steel and engineering specialist, has quietly built a track record of profitability. Its earnings per share (EPS) surged from RM0.017 to RM0.14 over the past year—a roughly 700% increase that has caught the eye of bottom-up investors. While such rapid growth warrants scrutiny, the improvement appears rooted in stronger operational performance rather than one-off gains.

Revenue climbed alongside earnings, and the company’s earnings before interest and taxation (EBIT) margin expanded by 4.6 percentage points to 8.1% over the same period. That combination—top-line growth and margin expansion—is often a hallmark of sustainable business momentum. In a sector where project execution and cost control are key, the margin improvement signals that Eversendai is managing its projects more efficiently.

With a market cap of approximately RM250 million, Eversendai is not a large-cap name. That makes it more susceptible to volatility, but also opens the door for outsized gains if the growth trajectory continues. The company’s balance sheet, while not covered in detail here, will be a key factor for investors to assess alongside the earnings story.

One of the strongest signals of alignment between management and shareholders is insider ownership. At Eversendai, insiders collectively hold 79% of the outstanding shares. That stake, valued at roughly RM199 million at current prices, means the leadership team has a direct financial interest in the company’s long-term success. Such high insider ownership often reduces the risk of misaligned incentives and can be a positive sign for patient investors.

Of course, strong EPS growth and insider confidence do not guarantee future performance. Investors should consider the cyclical nature of the engineering and construction industry, as well as potential headwinds such as rising raw material costs or project delays. That said, for those building a portfolio around companies with improving fundamentals and insider skin in the game, Eversendai warrants a spot on the watchlist.

This article is for informational purposes only and does not constitute financial advice. Data sourced from public filings and analyst estimates.