i. Manufacturing and selling of transfomers to municipal and governments (Malaysia, China, Australia, Singapore, Kenya)
ii. Manufacturing and selling of smart lighting ("ILCS") to municipal and governments
iii. Manufacturing and Fabrication of metal/steel/aluminium for smart lighting via its subsidiary Omega Steel Industries
iv. Portable air purifier (Kare4u) using Korean technology approved by FDA
The company is highly undervalued in terms of financials, as net cash of the company (including short term investments) are valued at RM0.55/share
The company's net assets or equity value is RM1.47 per share with zero borrowings.
The company's products are highly scalable into smart technologies in Electric Vehicles and Solar.
Based on Nov21 chart, the share price experienced a sell off post ex-dividend date and reporting of Q1 financials.
However, the company is widely expected to report better financials in FY22 as economies open up and municipal and governments replace conventional lighting with smart lighting with monitoring and sensor system.
Note that the company's intangible value is that they fabricate their own products, thus not being adversely affected in the purchase supply chain.
Further catalyst is the company's recently launched business on Korean air purifier approved by FDA. This product has been selling like hot cakes in recent months as the economy gradually opens up with the need for greater hygienic level.
During the recently concluded AGM, management did not rule out any business opportunities / collaboration in the EV industry.
At current price of RM0.795, the company is definitely worht a relook.
Note that all 3 of Success Transformers products has been receiving myriads of orders in recent months.
This is due to: 1. The replenishment exercise by major Municipals due to damages to street lights. 2. Air purifier product being sold like hot cake since end of last year. 3. Potential moving into EV segment via electric charging of batteries
At RM0.755 per share, the company is highly undervalued.
Expect Q4 results to show significant improvement due to factors 1 & 2 above.
Share price is expected to further propel once factor 3 is finalized.
Prospects Our country has entered into the endemic phase of Covid-19 beginning 1 April 2022, and this recovery is expected to gain momentum in 2022. This is underpinned by several factors including continued expansion in external demand, full upliftment of containment measures, reopening of international borders, and further improvement in labour market conditions. However, there are uncertainty in both marco and micro economy activities that is triggered by geopolitical concerns, inflation, foreign exchange volatility and liquidity tightening across the market. Despite all the uncertainty, the Group believes that the growth of the Group will be supported by the steady demand for smart lighting and LED lighting in view of the increasing global demand for LED lighting to replace conventional lighting in order to increase energy efficiency and reducing in carbon footprint. Furthermore, the Group also believes it will benefit from the global development of set up smart cities which helps to meet sustainability goals by enhancing city living and utilise superior technology such as Intelligent Light Control System and sensors to address economic, social and ecological challenges of the city while reducing costs. For our transformer products, the established well-known brand name of QPS remain the key player in the local low voltage transformer market. We believe the sales momentum will drive upwards, particularly in data centres industry and with the implementation of “Industrial 4.0” within the South East Asia (S.E.A.) region. Barring any unforeseen circumstances, the Group believes that the overall performance for the financial year ending 30 June 2023 will remain satisfactory
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
richmao
487 posts
Posted by richmao > 2021-11-19 09:24 | Report Abuse
you see the number Q to sell and buy. obviously shark run already, now is retailer vs retailer only.