Success Transformer Corporation Berhad (STC) is engaged in investment holding and provision of management services. The Company, through its subsidiaries, operates in two segments: transformer, lighting and related products, which is engaged in manufacturing and marketing of electrical apparatus, industrial lighting and metal products focusing on metal casing and stamping parts, and process equipment, which is engaged in the fabrication of process equipment and metal structures and the provision of maintenance, repair and shutdown works. Its direct subsidiaries are Success Transformer Manufacturer Sdn. Bhd., Success Electronics & Transformer Manufacturer Sdn. Bhd., Success Transformer Marketing Sdn. Bhd., Nikkon Industrial Lighting Sdn. Bhd., SES Property Sdn. Bhd., Daiichi Steel Sdn. Bhd., Omega Metal Industries Sdn. Bhd., Seremban Engineering Berhad and Ningbo Success Zhenye Luminaire Limited Liabilities Company. On July 15, 2011, it incorporated a subsidiary Nikkon Holding Pte. Ltd.
chankp7010By next month, Success will declare its 3QR and will likely to show increased profitability. Even now, insiders are busy buying its shares prior to official publication to Bursa Malaysia. Buy and sell at your own risks.
chankp7010Those who had sold their holdings in Success must have regretted due to the fact that Success is climbing north again. Soon it might even reach RM4.00.
yes, the big boss has declared to Bursa that he wants to trade before the release of Mar 31st Quarterly results.. and this coincides with the recent hike of share price... maybe the boss or insiders already know the results will be good (but disclaimer here: I am not too sure)... it just looks like that way....
Dolly_Chai2from Mar 31st to now.. almost one month d.. so the boss should already know from Finance if results are good or not good.. hehe
Dolly_Chai2for those who followed me since last year... it was only trading around RM2... but my conservative valuation above shows that it should be worth RM4.29 at least... so still much room to grow and i am still holding tight... hehe
chankp7010For Dolly_Chai2, what do you think about "Success" trading price next term, (2-3 months times)?
suregaini think almost peak... beter sell on profit
Kelvin HKrule of selling for good profit company - only sell if company fundamental has changed or some bad global market news ...
has both above happen ?
Dolly_Chai2chankp7010... i am not sure for short-term TP.. i dont actually care for short term TP actually... I will just wait until it reaches the intrinsic value... i can wait for longer term. :) this is value investing.
Dolly_Chai2suregain... i am not really sure if you gain everytime.. from what i can see from your comments.. u r short-term speculator... so u do not even understand what intrinsic value is all about and it sounds a bit ridiculous to hear you say: "almost peak"... tell us how to define it is "almost peak" if you do not have some proper valuation? i know different ppl will have different valuation methods. i have given one... but i doubt u will have one too... pls enlighten us with ur valuation if you really have one.. thank you
Dolly_Chai2Kelvin, yes, the fundamental has changed!!!! from good to better!!! haha
equitydiaryA successful investment for those who bought early
suregainhaha, u dun sooo confident... anything can hapen... u hv to understand te px up from less than rm2... if not peak, i think almost there.... n almost all the good news oredi priced in...
Kelvin HKsuregain, just sell and go away if you think already peak
Dolly_Chai2haha... yaya.. he is just a short-term speculator.. what do u expect from him? haha
Dolly_Chai2what is his so-called "priced in"... u must have a metric to measure or value it right? haha
Dolly_Chai2short term trader will sell to take profit even when the share price goes up 5%... if u r a value investor, u would not even do so...
suregainSuces own seb.. Seb is a loss making company... It wil b a drag to sucess earnings... Seb can give negative surprise to sucess.. So dun over confident
Dolly_Chai2haha... suregain... check back the latest reports and see.. SEB/process equipment div will likely be generating positive earning in 2017:
In the process equipment segment, the economic outlook remain challenging. Nevertheless, the Group is continuing its effort to focus on its core business in fabrication of pressure vessels and process equipment for oil and fats industries, chemical, downstream petrochemical, water treatment and power plants. In addition, with the Group marketing strategy in broadening the customer base and products especially in steel structure and piping works and securing order books todate, the Board aims to strengthen project management and cost control so as to generate better margin and positive results for the Group in this financial year
in fact, i suppose in Q1 & Q2 2017 result, SEB already turned around to be profitable. Why?
See 2015 Q6 (yes, they have 6 quarters that year to change to a new fiscal calendar)... non-controlling interest (35% of SEB) was seeing -9.136mil loss...
in 2017 Q1 & Q2 (cumulative), the non-controlling interest is already positive = RM5.653mil...
and there are other clues too:
Review of performance Profit after tax and non-controlling interest (“PATNCI”) of RM14.83 million for the current quarter ended 31 December 2016 representing an increase of RM5.93 million or 66.7% as compared to previous year’s corresponding quarter ended 31 December 2015 of RM8.90 million due to better performance in transformer and lighting segment and improvement of results in process equipment segment.
Variation of results against preceding quarter The Group recorded a profit before tax (“PBT”) of RM25.25 million for the current quarter ended 31 December 2016, representing an increase of RM5.96 million or 30.9% as compared to the preceding quarter ended 30 September 2016 PBT of RM19.29 million mainly due to contribution from transformer and lighting segment and process equipment segment.
both paragraphs mentioned about contribution from process equipment segment..
so do u still think SEB/ process equp is still making a loss?
let me tell u what.. they previously made loss due to SAMUR project cost overrun (with Kencana).. and this project has ended...
see, u need to spend effort to do homework.. that is what a value investor does...
Dolly_Chai2and also dun forget.. their main source of revenue and profit still come from Transformer,industrial lighting and related products
chankp7010Thank you Dolly_Chai2. Very well written piece of article.
Dolly_Chai2you are welcome chankp7010... i am just telling facts.. instead of telling "overpriced", "priced in", "Peak", "SEB is a loss making company" etc but not giving any justification to it...
no offense to anyone =)
Dolly_Chai2another thing - u need to be observant .... u can get clues from everywhere.. of course, u must spend time to do homework!!!
ginvini believed it has been fully valued at the current price..... hopefully nxt qr will push it higher
suregaincakap saje senang... process equipment manufacturing is highly cost intensive... with all labour and steel px up, u ingat senang senang nak make profit.... u tengok knm, pun susah nak survive...
Dolly_Chai2suregain, thanks for your advice. When i first invested in share market 20 years ago, i know nothing is 100%. if there is a 100% thing, everyone is a billionaire now... what u said is right, we have to be cautious so that is why we need to do a lot of homework, the more, the better.. there is still no guarantee that with all this homework we have done, it is a 100% surewin or suregain investment.. but at least, it provides us with a much higher percentage of chance to make profit from our value investing..