SUCCESS (7207) : SUCCESS - Lighting the Way Up

SUCCESS (7207) : SUCCESS - Lighting the Way Up

While global market had been in an upbeat mode, Malaysia had been trailing behind most of the party after foreign investor view Malaysia outlook as "a lack of catalyst" as foreign funds pared down holdings. However, with the month of November that is full of quarterly reports, would there be something that will be interesting to look out at?

It had came to me on Success Transformer Corp Berhad (SUCCESS - 7207), which is dealing with lighting and transformer will be a good company to be vested in with their bright business prospectus.

Let's have a look at their latest chart

SUCCESS had been in a gradual uptrend. SUCCESS had been consolidating at the range of RM 1.85 to RM 2.00 in a lower volume manner. However, with the tight consolidation focused at the range of RM 1.95, SUCCESS could be pending upon a break above RM 2.00 in the coming days with a strong anticipation on a stronger quarterly performance.

SUCCESS - Lighting the LED way

The latest trend had been going the LED way for cost saving and environmental friendly. Success Transformer Corp Berhad, being the largest LED Lightning manufacturer in Malaysia would be looking to see this trend as a booming prospect for it's business.

LED had been in a strong trend as of lately, and it's widely supported in the European countries as it consumes lesser energy while providing a brighter light, which in turn, reducing green house gases that had been a cause of global warming.

SUCCESS had been seeing steady growth in it's revenue since 2009.

According to the latest Q2 FYE 2014 performance, Success had been seeing a cumulative revenue of RM 189.6 million.

A quick simple calculation will see SUCCESS maintaining their 2014 performance will be seeing a possible revenue around RM 380 million, as EPS can hit a potential 28 to 29 cents. A quick valuation based on PER x10 will easily see SUCCESS being valued at the range of RM 2.80.

Currently, SUCCESS had been aggressively expanding it's network and production to Thailand and Singapore. SUCCESS is currently catering to more than 60 countries and will be looking to see more demand coming in to their door.

Based on the current outlook, SUCCESS will be looking to see a 15% to 20% growth in their revenue for the next 3 years, which could potentially hit up to RM 500 million revenue in FYE 2016.


In my opinion, SUCCESS will be a good fundamental company to be vested in for the long run, with good business prospectus, good management team, and good financial control within the company. A long term outlook will place SUCCESS at RM 3.00.

Bone's short term TP : RM 2.20

Cheers and have a nice day

Regards,
Bone

 http://bonescythe.blogspot.com