Tuesday, November 26, 2013

Success- bottom-line inched higher

Result Update

For QE30/9/2013, Success's net profit increased by 11% q-o-q or 1% y-o-y to RM8.5 million while revenue was mixed, dropped a fraction of a percent but rose 4% y-o-y to RM82.9 million. The bottom-line improved q-o-q due to better performance derived from transformer and industrial lighting segment.

Table: Success's last 8 quarterly results

Chart 1: Success's last 26 quarterly results


Success (closed at RM1.22 yesterday) is now trading at a PE of 4.6 times (based on past 4 quarters' EPS of 26.34 sen). Price to book is about 0.6 time (based on NTA p.s. of RM1.83 as at 30/9/2013). Dividend yield is however small at 2.5%. As such, Success is deemed an attractive stock.

Technical Outlook

Success is now resting on its long-term uptrend line at RM1.00. Its resistance is at RM1.27-1.30 while its support is at RM1.10.

Chart 2: Success's weekly chart as at Nov 25, 2013 (Source: Quickcharts)


Based on good financial performance, attractive valuation and positive technical outlook (albeit unexciting performance), Success is rated a good stock for long-term performance.

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Success.

1 comment:

panaceaasia said...

Success is a company that is so undervalued that should be taken private. It's share price performance has been stagnant in this small mid cap rally.