Stock With Momentum: Success Transformer Corp

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This article first appeared in The Edge Financial Daily, on October 26, 2015.


Success Transformer Corp Bhd (-ve)

SUCCESS (Fundamental: 1/3 Valuation: 1.8/3) triggered our momentum algorithm for the first time on Friday, closing 13 sen or 6.7% higher at an all-time high of RM2.07. Since October 9, the stock has surged 55.6% and in this period, there has been a notable shareholding change.

On October 13, Success’ second largest shareholder, Wtech Holdings Sdn Bhd, ceased to be a substantial shareholder after disposing 5.11 million shares at an average price of RM1.467. Wtech Holdings is controlled by Success’ director, Wong Poh Chee. Investors should note that Wtech Holdings has been actively paring its stake since July 2015.

Success is primarily involved in the manufacturing and trading of transformers and lighting products under the NIKKON, QPS, SES, LIKO and SUPER-LITE brands. The company also fabricates process equipment and metal structures and provides maintenance, repair and shutdown works.

Notably, Success has a 65.3% stake in another Bursa-listed company, Seremban Engineering Bhd.