I bought in this stock with the price at RM1.02. With the unaudited Q4 2010 income statement, the EPS (Earning per share) is RM0.2104, which make the PE=4.85 (Price/EPS = RM1.02/0.2104). Meaning that with the amount that I invest today, the company is able to earn back the same amount within 4.85 years.
The revenue of SUCCESS is growing in an uptrend from RM80m to RM207m. However the profit margin is not look like a good sign to me. Looking at the profit margin, they are going down trend for the past 4 years. This might showing a sign that SUCCESS is facing some challenge from competition. Or it might be due to some strategic acquisition of the company that might somehow lower down the profit margin for short term. I will pose this question to the investor relations officer and hope there is a good answer.
Also the dropping of the net profit for year 2010 compare to year 2009 is also a question that I will need to check.
Looking at the dividend, is RM0.03 for year 2009 and proposing RM0.035 for year 2010. With buying price of RM1.02, is ~3% return in term of dividend every year. It might be a bit little, but good thing is SUCCESS is expanding the company to ensure the company will continue to grow. You can check the company website to obtain the acquisition plan.
With the green technology concept and commitment on product development, and continuous expand on the export markets. I believe that the company will continue to grow.
I’ll stop at here for now today; will continue writing on this topic tomorrow.
its good recommendation for the klse also get live update of
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