Success's net profit remained unchanged q-o-q at RM6.7 million while its turnover inched up 3.5% to RM63.9 million. When compared to the corresponding quarter last year, its net profit increased by 27% on the back of 22%-increase in turnover. The company reported that the y-o-y improvement in bottom-line & top-line was due to overall increase in sales for all segments in general and and the process equipment segment in particular. For more on the business segments, go to an earlier post.
Table: Success's last 8 quarterly results
Chart 1: Success's last 18 quarterly results (with profit margin)
Valuation
Success (closed at RM0.865 yesterday) is now trading at a trailing PE of 3.8 times (based on last 4 quarters' EPS of 22.62 sen). At this PE multiple, Success is deemed attractive.
Technical Outlook
Success is now resting on its long-term uptrend line at RM0.85.
Chart 2: Success's weekly chart as at Nov 21, 2011 (Source: Tradesignum)
Conclusion
Based on steady financial performance, attractive valuation & good technical outlook, Success is a good stock for long-term investment.
hi alex,
ReplyDeletethanks for your analysis.
i also think this is a fundamentally sound company, just couldnt understand why it was sell down so much over the year without much support. sometimes good stock go unnoticed..
regards
maxwealth88
Dra MaxWealth88,
ReplyDeleteI am agree with you. I am holding this stock for quiet sometime and believe its' value will eventually notice by investor :)
What a company with good fundamental doesn't gain investors interest?
ReplyDeleteProbably due to "no growth" in bottom line.
The effect of increased top line offset by the reduced profit margin.