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Stock Up, Profits Down: Batu Kawan's Dilemma
16 Dec, 2025
Summary
- Batu Kawan's ROE is 6.4%, aligning with the industry average.
- Company saw net income decline of 20% over the past five years.
- Industry earnings grew 2.8% while Batu Kawan's declined.

Batu Kawan Berhad's stock has experienced a modest 2.3% rise in the past three months. However, this upward trend may not be sustainable given the company's recent financial performance indicators. An examination of its Return on Equity (ROE) reveals a figure of 6.4%, calculated based on a net profit of RM1.0 billion against shareholders' equity of RM16 billion for the trailing twelve months ending September 2025. This means the company generated RM0.06 in profit for every MYR1 of shareholder capital.
While Batu Kawan's ROE is comparable to the industry average of 6.6%, a deeper look into its earnings growth reveals a concerning trend. The company's net income has declined by 20% over the last five years. This significant contraction in earnings is a stark contrast to the broader industry, which has seen positive earnings growth of 2.8% in the same timeframe. This divergence raises questions about Batu Kawan's future profitability and market position.




