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.
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....