Thursday, January 1, 2015

About Success Transformer

One of Malaysia’s low voltage transformer and industrial lighting manufacturers, has out performed most of its peers with double digits growth in sales and profits for the first half of 2014. Amid a challenging environment faced by the company, it saw its pre tax profit rise 21.4% to rm25.4 million in 1HFY2014 while revenue increased 27.7% to rm189.6 million.

For FY2013 the transformer and lighting segment accounted for 67% of sales with the balance contributed by the process equipment segment. Going forward, the transformer business will expand into niche markets such as IT and marine while SUCCESS also expects higher contribution from LED lighting which is benefiting from increasing demand for energy efficient lighting products.

SUCCESS has seen steady growth over the years. From FY2010 to FY2013 revenue grew by a CAGR of 15.8% to rm322.8 million while pre tax profit increased by a CAGR of 9.3% to rm44.9 million. The local market contributed 83.8% to sales in FY2013 while the rest came from exports.

Its net gearing ratio stands at a manageable 25.1%.

It is currently (28 Dec 2014) trading at a low trailing 12 month PER of 6.4 times and 0.8 times book value.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.