This article first appeared in The Edge Financial Daily on April 22, 2019
Success Transformer Corp Bhd (-ve)
TRADING of shares in Success Transformer Corp Bhd (fundamental: 1.45/3, valuation: 2/3) triggered our momentum algorithm for the fifth time this year and the third time this month. The last time it triggered our algorithm was last Monday.
The counter closed 16.05% or 13 sen higher at 94 sen — with 4.7 million shares changing hands — giving the group a market capitalisation of RM233.59 million. This was in contrast to its 200-day average trading volume of 287,276.5 shares.
Success Transformer is involved in designing, manufacturing, and trading of industrial lighting and electrical apparatus specialising in low-voltage transformers and process equipment.
Last Friday, CGSCIMB initiated coverage of the stock with a favourable outlook for its lighting products. In a report, CGSCIMB analyst Walter Aw said Success Transformer stands to benefit from the government’s plans to replace street lights nationwide with LED in stages starting from September 2019.