TSEC:2496

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Success Prime Corporation primarily engages in the education business in Taiwan. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Success Prime's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2496 is less volatile than 75% of TW stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 2496's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0%

2496

-0.4%

TW Consumer Services

-0.7%

TW Market


1 Year Return

-22.5%

2496

-13.6%

TW Consumer Services

39.4%

TW Market

Return vs Industry: 2496 underperformed the TW Consumer Services industry which returned -13.6% over the past year.

Return vs Market: 2496 underperformed the TW Market which returned 39.4% over the past year.


Shareholder returns

2496IndustryMarket
7 Day0%-0.4%-0.7%
30 Day-2.4%4.9%1.1%
90 Day-14.2%-4.4%11.6%
1 Year-20.8%-22.5%-9.7%-13.6%44.3%39.4%
3 Year-58.9%-63.6%-12.3%-23.2%61.9%43.7%
5 Year-36.0%-43.9%4.0%-11.5%116.7%78.6%

Long-Term Price Volatility Vs. Market

How volatile is Success Prime's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Success Prime undervalued compared to its fair value and its price relative to the market?

49.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2496 (NT$49.6) is trading below our estimate of fair value (NT$97.93)

Significantly Below Fair Value: 2496 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2496 is good value based on its PE Ratio (13.4x) compared to the TW Consumer Services industry average (16.8x).

PE vs Market: 2496 is good value based on its PE Ratio (13.4x) compared to the TW market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2496's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2496 is good value based on its PB Ratio (1.2x) compared to the TW Consumer Services industry average (2.2x).


Next Steps

Future Growth

How is Success Prime forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

35.3%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Success Prime has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Success Prime performed over the past 5 years?

27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2496 has high quality earnings.

Growing Profit Margin: 2496's current net profit margins (8.5%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: 2496 has become profitable over the past 5 years, growing earnings by 27.8% per year.

Accelerating Growth: 2496's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2496 had negative earnings growth (-28.9%) over the past year, making it difficult to compare to the Consumer Services industry average (-11.6%).


Return on Equity

High ROE: 2496's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is Success Prime's financial position?


Financial Position Analysis

Short Term Liabilities: 2496's short term assets (NT$172.7M) do not cover its short term liabilities (NT$323.5M).

Long Term Liabilities: 2496's short term assets (NT$172.7M) exceed its long term liabilities (NT$77.1M).


Debt to Equity History and Analysis

Debt Level: 2496's debt to equity ratio (2.8%) is considered satisfactory.

Reducing Debt: 2496's debt to equity ratio has reduced from 79.1% to 2.8% over the past 5 years.

Debt Coverage: 2496's debt is well covered by operating cash flow (622.4%).

Interest Coverage: 2496's interest payments on its debt are well covered by EBIT (16.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Success Prime current dividend yield, its reliability and sustainability?

2.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2496's dividend (2.75%) is higher than the bottom 25% of dividend payers in the TW market (2%).

High Dividend: 2496's dividend (2.75%) is low compared to the top 25% of dividend payers in the TW market (4.99%).


Stability and Growth of Payments

Stable Dividend: 2496 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2496 has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.7%), 2496's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Shu-ling Tseng

no data

Tenure

Ms. Shu-ling Tseng has served as a Director of Success Prime Corporation since January 23, 2019 and serves as General Manager. She is Representative of Success Prime Corp, Chairman of Chen Li Educational C...


Leadership Team

NamePositionTenureCompensationOwnership
Shu-ling Tseng
GM & Directorno datano datano data
Hong Chin Yi
Chief Financial Officer3.67yrsno datano data
Yi Luo Xiang
Head of Accounting2.17yrsno datano data
L. Tai
Director of Administrationno datano datano data
Aleko Hsiung
Vice President of Sales9.67yrsno datano data
Da-Tung Liang
Senior Vice Presidentno datano datano data

3.7yrs

Average Tenure

Experienced Management: 2496's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shu-ling Tseng
GM & Directorno datano datano data
S. Hsiao
Supervisorno datano datano data
Shen Wei
Supervisorno datano datano data
Min-Chun Chen
Chairman of the Board2.17yrsno datano data
Xiang-Qi Fang
Director1.83yrsno datano data
Rui-Xian Lin
Director1.83yrsno datano data
Yen-Shuen Chen
Director1.83yrsno datano data
Yun Chen
Director1.83yrsno datano data
Bing-Quan Shi
Independent Director1.83yrsno datano data
Pei-Jun Hong
Independent Director1.83yrsno datano data

1.8yrs

Average Tenure

Experienced Board: 2496's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Success Prime Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Success Prime Corporation
  • Ticker: 2496
  • Exchange: TSEC
  • Founded: 1991
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: NT$932.877m
  • Shares outstanding: 18.81m
  • Website: https://www.success-prime.com

Number of Employees


Location

  • Success Prime Corporation
  • Zhunan Township
  • 2nd Floor
  • Miaoli
  • 350
  • Taiwan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2496TSEC (Taiwan Stock Exchange)YesCommon StockTWTWDMar 2002

Biography

Success Prime Corporation primarily engages in the education business in Taiwan. It offers education services, such as face-to-face tutoring and consulting, as well as digital learning services, including ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 08:48
End of Day Share Price2021/03/05 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.