Reported Earnings • May 28
Third quarter 2026 earnings released: EPS: RM0.013 (vs RM0.01 in 3Q 2025) Third quarter 2026 results: EPS: RM0.013 (up from RM0.01 in 3Q 2025). Revenue: RM57.1m (up 13% from 3Q 2025). Net income: RM2.95m (up 21% from 3Q 2025). Profit margin: 5.2% (up from 4.8% in 3Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Reported Earnings • Feb 25
Second quarter 2026 earnings released: EPS: RM0.014 (vs RM0.018 in 2Q 2025) Second quarter 2026 results: EPS: RM0.014 (down from RM0.018 in 2Q 2025). Revenue: RM53.9m (down 21% from 2Q 2025). Net income: RM3.19m (down 27% from 2Q 2025). Profit margin: 5.9% (down from 6.4% in 2Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. New Risk • Feb 25
New major risk - Revenue and earnings growth Earnings have declined by 3.0% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 3.0% per year over the past 5 years. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (5.2% net profit margin). Market cap is less than US$100m (RM147.5m market cap, or US$37.9m). Reported Earnings • Nov 17
First quarter 2026 earnings released: EPS: RM0.014 (vs RM0.009 in 1Q 2025) First quarter 2026 results: EPS: RM0.014 (up from RM0.009 in 1Q 2025). Revenue: RM51.8m (down 3.4% from 1Q 2025). Net income: RM3.39m (up 61% from 1Q 2025). Profit margin: 6.5% (up from 3.9% in 1Q 2025). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Nov 07
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.5% to RM0.64. The fair value is estimated to be RM0.83, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 10%. Announcement • Oct 29
Success Transformer Corporation Berhad, Annual General Meeting, Dec 04, 2025 Success Transformer Corporation Berhad, Annual General Meeting, Dec 04, 2025, at 11:00 Singapore Standard Time. Location: tropicana golf & country report, greens iii, sports wing, jalan kelab tropicana, selangor darul ehsan, 47410 petaling jaya, Malaysia Upcoming Dividend • Oct 25
Upcoming dividend of RM0.018 per share Eligible shareholders must have bought the stock before 30 October 2025. Payment date: 20 November 2025. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Malaysian dividend payers (5.4%). Higher than average of industry peers (1.7%). Declared Dividend • Oct 11
Dividend of RM0.018 announced Shareholders will receive a dividend of RM0.018. Ex-date: 30th October 2025 Payment date: 20th November 2025 Dividend yield will be 2.7%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (36% earnings payout ratio) and cash flows (16% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has remained steady over the last 5 years. Unless this trend deteriorates, it should provide adequate earnings cover for the dividend. Buy Or Sell Opportunity • Sep 12
Now 22% undervalued The stock has been flat over the last 90 days, currently trading at RM0.61. The fair value is estimated to be RM0.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 10%. New Risk • Aug 28
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.8% Last year net profit margin: 9.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (4.8% net profit margin). Market cap is less than US$100m (RM149.8m market cap, or US$35.4m). Buy Or Sell Opportunity • Aug 28
Now 20% undervalued Over the last 90 days, the stock has risen 8.6% to RM0.63. The fair value is estimated to be RM0.79, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 10%. Reported Earnings • May 28
Third quarter 2025 earnings released: EPS: RM0.01 (vs RM0.017 in 3Q 2024) Third quarter 2025 results: EPS: RM0.01 (down from RM0.017 in 3Q 2024). Revenue: RM50.4m (down 9.2% from 3Q 2024). Net income: RM2.43m (down 40% from 3Q 2024). Profit margin: 4.8% (down from 7.3% in 3Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 8% per year. Announcement • Mar 28
Success Transformer Corporation Berhad Announces Resignation of Tan Loo Ee as Company Secretary Success Transformer Corporation Berhad announced the resignation of TAN LOO EE as Company Secretary, Date Of Change 28 March 2025. Reported Earnings • Feb 26
Second quarter 2025 earnings released: EPS: RM0.019 (vs RM0.029 in 2Q 2024) Second quarter 2025 results: EPS: RM0.019 (down from RM0.029 in 2Q 2024). Revenue: RM68.3m (up 2.4% from 2Q 2024). Net income: RM4.36m (down 36% from 2Q 2024). Profit margin: 6.4% (down from 10% in 2Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 28
First quarter 2025 earnings released: EPS: RM0.009 (vs RM0.02 in 1Q 2024) First quarter 2025 results: EPS: RM0.009 (down from RM0.02 in 1Q 2024). Revenue: RM53.6m (down 14% from 1Q 2024). Net income: RM2.10m (down 53% from 1Q 2024). Profit margin: 3.9% (down from 7.2% in 1Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Announcement • Oct 18
Success Transformer Corporation Berhad Announces Single-Tier Interim Dividend for the Year Ending June 30, 2025, Payable on November 29, 2024 Success Transformer Corporation Berhad announced single-tier interim dividend of 1.6 sen per ordinary share for the year ending June 30, 2025. Ex-Date is October 30, 2024, Entitlement date is November 1, 2024 and Payment Date is November 29, 2024. Declared Dividend • Oct 18
Final dividend of RM0.016 announced Shareholders will receive a dividend of RM0.016. Ex-date: 30th October 2024 Payment date: 29th November 2024 Dividend yield will be 3.9%, which is higher than the industry average of 2.1%. Sustainability & Growth Dividend is well covered by both earnings (15% earnings payout ratio) and cash flows (17% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share has grown by 4.6% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 30
Full year 2024 earnings released: EPS: RM0.095 (vs RM0.086 in FY 2023) Full year 2024 results: EPS: RM0.095 (up from RM0.086 in FY 2023). Revenue: RM232.8m (down 1.4% from FY 2023). Net income: RM22.1m (up 12% from FY 2023). Profit margin: 9.5% (up from 8.4% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Aug 29
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 1.7% to RM0.85. The fair value is estimated to be RM1.10, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.0% over the last 3 years. Earnings per share has grown by 5.7%. New Risk • Aug 05
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.7% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (2.8% increase in shares outstanding). Market cap is less than US$100m (RM212.3m market cap, or US$48.2m). Buy Or Sell Opportunity • Aug 05
Now 27% undervalued after recent price drop Over the last 90 days, the stock has fallen 19% to RM0.81. The fair value is estimated to be RM1.10, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.0% over the last 3 years. Earnings per share has grown by 5.7%. Upcoming Dividend • Jul 24
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 31 July 2024. Payment date: 21 August 2024. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Malaysian dividend payers (4.5%). In line with average of industry peers (1.4%). Announcement • Jul 16
Success Transformer Corporation Berhad Announces Single-Tier Special Dividend, Payable on 21 August 2024 Success Transformer Corporation Berhad announced Single-Tier Special Dividend of 1.5 sen per ordinary share. Ex-Date 31 August 2024; Entitlement date: 01 August 2024; Payment Date: 21 August 2024. Reported Earnings • May 22
Third quarter 2024 earnings released: EPS: RM0.017 (vs RM0.015 in 3Q 2023) Third quarter 2024 results: EPS: RM0.017 (up from RM0.015 in 3Q 2023). Revenue: RM55.5m (up 6.7% from 3Q 2023). Net income: RM4.05m (up 20% from 3Q 2023). Profit margin: 7.3% (up from 6.5% in 3Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 7% per year. Reported Earnings • Feb 28
Second quarter 2024 earnings released: EPS: RM0.029 (vs RM0.029 in 2Q 2023) Second quarter 2024 results: EPS: RM0.029 (in line with 2Q 2023). Revenue: RM66.7m (flat on 2Q 2023). Net income: RM6.83m (up 4.2% from 2Q 2023). Profit margin: 10% (in line with 2Q 2023). Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Nov 29
First quarter 2024 earnings released: EPS: RM0.02 (vs RM0.016 in 1Q 2023) First quarter 2024 results: EPS: RM0.02 (up from RM0.016 in 1Q 2023). Revenue: RM62.0m (up 7.6% from 1Q 2023). Net income: RM4.48m (up 25% from 1Q 2023). Profit margin: 7.2% (up from 6.2% in 1Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. New Risk • Nov 29
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (2.6% increase in shares outstanding). Market cap is less than US$100m (RM168.2m market cap, or US$36.0m). Announcement • Nov 02
Success Transformer Corporation Berhad Announces Redesignation of Tan Chung Chay from Executive Director to Deputy Managing Director Success Transformer Corporation Berhad announced Re-designation of Miss Tan Chung Chay from Executive Director to Deputy Managing Director. Age 42, Date of change: 01 November 2023. Qualifications: Masters-Master in Business Administration with finance specialisation University of Southern Queensland-Australia, Degree-Bachelor of Commerce, major in Finance and Marketing-Curtin University of Technology-Australia. Working experience: Ms. Tan Chung Chay started her career as Sales Executive at Success Transformer Marketing Sdn. Bhd. in 2003 and subsequently promoted as Sales Manager in 2008. In 2011, she was appointed as a director of Success Transformer Pte. Ltd. and Nikkon Lighting & Electrical Pte. Ltd., subsidiaries of the Company incorporated in Singapore. She is the Head of Business Development overseeing ASEAN countries and also plays a key role in leading the development and penetration of overseas markets. Currently, she is the Head of the Project Sales Team. Announcement • Oct 30
Success Transformer Corporation Berhad, Annual General Meeting, Dec 05, 2023 Success Transformer Corporation Berhad, Annual General Meeting, Dec 05, 2023, at 11:00 Singapore Standard Time. Location: the Conference Room of the Company No. 5, Jalan TSB 8, Taman Industri Sungai Buloh SELANGOR DARUL EHSAN Malaysia Agenda: To consider and approve the Audited Financial statements for the financial year ended 30 June 2023; to consider and approve the payment of Directors fees; to consider and approve the Election of Directors; to consider and approve the Messrs. Crowe Malaysia PLT as Auditors of the company; to consider and approve to issue of shares; to consider and approve the related party transaction; and to consider and approve the Buy-Back. Upcoming Dividend • Oct 20
Upcoming dividend of RM0.014 per share at 2.4% yield Eligible shareholders must have bought the stock before 27 October 2023. Payment date: 28 November 2023. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Malaysian dividend payers (5.2%). In line with average of industry peers (2.4%). Announcement • Oct 11
Success Transformer Corporation Berhad Announces Single-Tier Interim Dividend for the Financial Year Ending 30 June 2024, Payable on 28 November 2023 Success Transformer Corporation Berhad announced single-tier interim dividend of 1.4 sen per ordinary share for the financial year ending 30 June 2024. Ex-Date: 27 October 2023. Entitlement date: 30 October 2023. Payment Date: 28 Nov. 2023. Reported Earnings • Aug 31
Full year 2023 earnings released: EPS: RM0.086 (vs RM0.084 in FY 2022) Full year 2023 results: EPS: RM0.086 (up from RM0.084 in FY 2022). Revenue: RM236.0m (up 2.0% from FY 2022). Net income: RM19.8m (up 2.8% from FY 2022). Profit margin: 8.4% (up from 8.3% in FY 2022). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 30
Third quarter 2023 earnings released: EPS: RM0.015 (vs RM0.024 in 3Q 2022) Third quarter 2023 results: EPS: RM0.015 (down from RM0.024 in 3Q 2022). Revenue: RM52.0m (down 5.6% from 3Q 2022). Net income: RM3.39m (down 37% from 3Q 2022). Profit margin: 6.5% (down from 9.8% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • May 19
Success Transformer Corporation Berhad Appoints Miss Tan Chung Chiah as Alternate Director Success Transformer Corporation Berhad appointed Miss Tan Chung Chiah as Alternate Director, aged 38. Date of change: 18 May 2023. Miss Tan Chung Chiah done Bachelor of Commerce Degree with double majors in Accounting and Finance at Deakin University, Australia, Certified Practising Accountant at Certified Practising Accountant Australia and Chartered Accountant, Malaysian Institute of Accountants. Ms. Tan Chung Chiah has six (6) years of financial and taxation working experience as a Tax Accountant in Australia before she joined Success Electronics & Transformer Manufacturer Sdn. Bhd. as the Cost Controller in 2013. Reported Earnings • Mar 02
Second quarter 2023 earnings released: EPS: RM0.029 (vs RM0.032 in 2Q 2022) Second quarter 2023 results: EPS: RM0.029 (down from RM0.032 in 2Q 2022). Revenue: RM67.4m (down 8.5% from 2Q 2022). Net income: RM6.55m (down 11% from 2Q 2022). Profit margin: 9.7% (in line with 2Q 2022). Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Nov 23
First quarter 2023 earnings released: EPS: RM0.016 (vs RM0.008 in 1Q 2022) First quarter 2023 results: EPS: RM0.016 (up from RM0.008 in 1Q 2022). Revenue: RM57.6m (up 26% from 1Q 2022). Net income: RM3.57m (up 99% from 1Q 2022). Profit margin: 6.2% (up from 3.9% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.4% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Electrical industry in Asia. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 2 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Chairman Kamarudin Md Derom was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 30
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: RM0.084 (down from RM0.091 in FY 2021). Revenue: RM231.2m (down 2.5% from FY 2021). Net income: RM19.2m (down 7.2% from FY 2021). Profit margin: 8.3% (down from 8.7% in FY 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 5.9%. Earnings per share (EPS) also missed analyst estimates by 1.2%. Revenue is forecast to grow 8.3% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Electrical industry in Asia. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Announcement • Oct 29
Success Transformer Corporation Berhad, Annual General Meeting, Dec 06, 2022 Success Transformer Corporation Berhad, Annual General Meeting, Dec 06, 2022, at 11:00 Singapore Standard Time. Agenda: To receive the Audited Financial Statements for the financial year ended 30 June 2022 together with the Reports of the Directors and Auditors thereon; to approve the payment of Directors' fees amounting to MYR 285,000 for the financial year ending 30 June 2023 payable monthly in arrears after each month of completed service of the Directors during the subject financial year; to approve an amount up to MYR 15,000 as benefits payable to Non-Executive Directors of the Company for the period from 7 December 2022 to the Nineteenth Annual General Meeting of the Company to be held in year 2023 pursuant to Section 230(1)(b) of the Companies Act 2016; to consider board changes; to re-appoint Messrs. Crowe Malaysia PLT as Auditors of the Company until the conclusion of the next Annual General Meeting and to authorise the Directors to fix their remuneration; and to consider other matters. Upcoming Dividend • Oct 21
Upcoming dividend of RM0.018 per share Eligible shareholders must have bought the stock before 28 October 2022. Payment date: 28 November 2022. Payout ratio is a comfortable 20% but the company is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of Malaysian dividend payers (5.3%). Higher than average of industry peers (1.6%). Announcement • Oct 12
Success Transformer Corporation Berhad Announces Single-Tier Interim Dividend for the Financial Year Ending June 30, 2023, Payable on 28 Nov. 2022 Success Transformer Corporation Berhad Announced Single-tier interim dividend of 1.8 sen per ordinary share for the financial year ending June 30, 2023 Ex-Date 28 Oct 2022 Payment Date of 28 Nov. 2022. Announcement • Aug 25
Success Transformer Corporation Berhad Provides Property, Plant and Equipment Written Off for the Fourth Quarter Ended June 30, 2022 Success Transformer Corporation Berhad provided property, plant and equipment written off for the fourth quarter ended June 30, 2022. The company reported property, plant and equipment written off of MYR 209,000 for the fourth quarter ended June 30, 2022 compared with MYR 3,000 for the fourth quarter ended June 30, 2021. Reported Earnings • Aug 25
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: RM0.09 (down from RM0.091 in FY 2021). Revenue: RM231.5m (down 2.3% from FY 2021). Net income: RM20.5m (down 1.2% from FY 2021). Profit margin: 8.9% (up from 8.7% in FY 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 13%, compared to a 47% growth forecast for the Electrical industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Reported Earnings • May 26
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: RM0.024 (up from RM0.019 in 3Q 2021). Revenue: RM55.1m (up 10% from 3Q 2021). Net income: RM5.39m (up 24% from 3Q 2021). Profit margin: 9.8% (up from 8.7% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 7.1%. Over the next year, revenue is forecast to grow 13%, compared to a 41% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 4 experienced directors. 2 highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Chairman Kamarudin Md Derom was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Feb 23
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: RM0.032 (up from RM0.028 in 2Q 2021). Revenue: RM73.6m (up 16% from 2Q 2021). Net income: RM7.37m (up 17% from 2Q 2021). Profit margin: 10.0% (in line with 2Q 2021). Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 7.1%. Over the next year, revenue is forecast to grow 15%, compared to a 48% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Jan 25
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 30%. The fair value is estimated to be RM0.91, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 11% per annum over the last 3 years. Earnings per share has grown by 18% per annum over the last 3 years. Reported Earnings • Nov 24
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: RM0.008 (down from RM0.028 in 1Q 2021). Revenue: RM45.9m (down 35% from 1Q 2021). Net income: RM1.80m (down 72% from 1Q 2021). Profit margin: 3.9% (down from 9.2% in 1Q 2021). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 1.6%. Earnings per share (EPS) also surpassed analyst estimates by 7.1%. Earnings per share (EPS) surpassed analyst estimates by 7.1%. Over the next year, revenue is forecast to grow 18%, compared to a 43% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 16% per year. Upcoming Dividend • Oct 20
Upcoming dividend of RM0.018 per share Eligible shareholders must have bought the stock before 27 October 2021. Payment date: 18 November 2021. Trailing yield: 1.9%. Lower than top quartile of Malaysian dividend payers (4.1%). Higher than average of industry peers (1.2%). Reported Earnings • Sep 28
Full year 2021 earnings released: EPS RM0.091 (vs RM0.044 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: RM237.1m (up 6.3% from FY 2020). Net income: RM20.7m (up 103% from FY 2020). Profit margin: 8.8% (up from 4.6% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Price Target Changed • Sep 17
Price target increased to RM1.12 Up from RM0.99, the current price target is an average from 2 analysts. New target price is 29% above last closing price of RM0.86. Stock is up 54% over the past year. Major Estimate Revision • Jun 01
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast fell from RM281.3m to RM228.5m. EPS estimate increased from RM0.071 to RM0.079 per share. Net income forecast to grow 19% next year vs 33% growth forecast for Electrical industry in Malaysia. Consensus price target up from RM0.99 to RM1.05. Share price was steady at RM0.79 over the past week. Reported Earnings • May 28
Third quarter 2021 earnings released: EPS RM0.019 (vs RM0.014 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: RM50.0m (up 5.1% from 3Q 2020). Net income: RM4.34m (up RM7.58m from 3Q 2020). Profit margin: 8.7% (up from net loss in 3Q 2020). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 5% per year. Executive Departure • May 07
Independent Non Executive Chairman Ahmad Bin Haji Abdul Razak has left the company On the 30th of April, Ahmad Bin Haji Abdul Razak's tenure as Independent Non Executive Chairman ended after 1.3 years in the role. We don't have any record of a personal shareholding under Ahmad's name. A total of 4 executives have left over the last 12 months. Reported Earnings • Feb 26
Second quarter 2021 earnings released: EPS RM0.028 (vs RM0.007 in 2Q 2020) The company reported a decent second quarter result with improved earnings and profit margins, although revenues were weaker. Second quarter 2021 results: Revenue: RM63.7m (down 1.5% from 2Q 2020). Net income: RM6.32m (up 278% from 2Q 2020). Profit margin: 9.9% (up from 2.6% in 2Q 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Feb 24
Analysts increase EPS estimates to RM0.071 The 2021 consensus revenue estimate increased from RM261.6m to RM281.3m. The earnings per share estimate also received an upgrade from RM0.051 to RM0.071 for the same period. Net income is expected to grow by 276% next year compared to 45% growth forecast for the Electrical industry in Malaysia. The consensus price target increased from RM0.87 to RM0.99. Share price is down by 2.0% to RM0.74 over the past week. Is New 90 Day High Low • Jan 18
New 90-day high: RM0.81 The company is up 48% from its price of RM0.55 on 20 October 2020. The Malaysian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electrical industry, which is up 19% over the same period. Is New 90 Day High Low • Dec 30
New 90-day high: RM0.72 The company is up 30% from its price of RM0.56 on 01 October 2020. The Malaysian market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Electrical industry, which is up 21% over the same period. Major Estimate Revision • Dec 01
Analysts increase EPS estimates to RM0.051 The 2021 consensus revenue estimate increased from RM240.1m to RM261.6m. The earnings per share estimate also received an upgrade from RM0.04 to RM0.051 for the same period. Net income is expected to grow by 170% next year compared to 36% growth forecast for the Electrical industry in Malaysia. The consensus price target increased from RM0.62 to RM0.87. Share price is up 16% to RM0.71 over the past week. Reported Earnings • Nov 26
First quarter 2021 earnings released: EPS RM0.028 The company reported a soft first quarter result with weaker earnings and profit margins, although revenues were improved. First quarter 2021 results: Revenue: RM70.3m (up 5.7% from 1Q 2020). Net income: RM6.46m (down 46% from 1Q 2020). Profit margin: 9.2% (down from 18% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Price Target Changed • Nov 26
Price target raised to RM0.87 Up from RM0.62, the current price target is provided by 1 analyst. The new target price is 31% above the current share price of RM0.67. As of last close, the stock is down 29% over the past year. Is New 90 Day High Low • Nov 17
New 90-day high: RM0.59 The company is up 6.0% from its price of RM0.56 on 19 August 2020. The Malaysian market is up 2.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Electrical industry, which is up 13% over the same period. Is New 90 Day High Low • Oct 30
New 90-day low: RM0.53 The company is down 6.0% from its price of RM0.56 on 30 July 2020. The Malaysian market is down 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 14% over the same period. Announcement • Oct 18
Success Transformer Corporation Berhad Announces Redesignation of Yeoh Kim Wah from Independent Director to Non-Independent Director Success Transformer Corporation Berhad announced redesignation of Mr. Yeoh Kim Wah from Independent Director to Non-Independent Director. The date of change is October 16, 2020. Is New 90 Day High Low • Oct 06
New 90-day low: RM0.55 The company is down 8.0% from its price of RM0.59 on 08 July 2020. The Malaysian market is flat over the last 90 days, indicating the company underperformed over that time. It also underperformed the Electrical industry, which is up 19% over the same period. 
