STC seen as attractive proposition due to its current valuations

“The weaker-than-expected 3QFY2020 results were due to weaker-than-expected domestic and export sales of LED lighting and transformers, given the global economic uncertainties and implementation of the movement control order (MCO), ” CGS-CIMB said.

PETALING JAYA: The near-term outlook for electronics maker Success Transformer Corp (STC) Bhd is dim but the company is an attractive proposition because of its current valuations, relatively strong net cash position and possible re-rating catalysts.

CGS-CIMB said this in a report, noting that STC’s latest third quarter’s reported core net profit came in at RM1.4mil (-75.4% year-on-year +359% quarter-on-quarter) after accounting for one-off losses of RM4.6mil.