Posted by Sslee > 2021-01-18 19:55 | Report Abuse

Philip ( buy what you understand) I could answer this question, the reason was actually very simple. Prior to 2018, iq group was going very well as a ODM and OEM for other international companies. Meaning they would make products that were used and branded by Osram, Phillips, L&E, etc. Demand and sales were doing very well.
However it decided to tip it's hand by using the design learned from it's customers and produce it's own product, which directly competed with it's own customers. This was a disastrous move.

Being very unhappy, and as the main players for LED lighting is very small, almost all of them decided to drop purchasing from iqgroup and found other manufacturers instead. Almost overnight the sales and earnings dried up.

Moving forward, iqgroup will no longer be able to do OEM or ODM business as they have burned that bridge. Time Will tell if lumiqs is able to compete in a very competitive marketplace.

>>>>>>>>>

in FYE March 2018, the group's profitability was adversely affected by a combination of the followings :-

(a) slow down in sales (reason unknown);
18/06/2019 3:11 AM

Posted by Sslee > 2021-01-18 19:57 | Report Abuse

Philip ( buy what you understand) To be honest, I have bought the qps automatic voltage stabilizer ( different from capbank) from success, especially for easy Malaysia projects where the voltage sometimes fruits from 240v to 200v and 415v do to 360. It helps out alot.

However, ever since my purchasing team found alibaba, we have been taking our sales of Nikkon street lights and avs systems for refineries directly from China. Especially as these items do not require sirim or have government control requirements.

Their prices especially are more expensive than China, and unable to compete in terms of low cost assembly efficiency, and bulk raw materials costs.

For me business competitive advantage is everything. I don't see success transformer to be able to grow their products exports significantly.

The is no major tax break from mida for parents products like vitrox.
The products sold is very standardised in market and commodities.
Lighting industries are very sad. Just ask iq-group what happened to their business.

Moat is basically a word to describe why you would buy the products the company produces.

Is it the cheapest in the market? No. QTC Thailand is far cheaper. We buy from them.
Is it the best in the market? No. Megaman is. Or osram, even Phillips.
Is there a local requirement that requires qps product? No. Sirim unneeded. Many hospitals use China brand. In fact Nikkon lighting Mahal.
Is there management excellent? I leave it up to you to decide.
Is the management shareholder aligned? This at least his my criteria.
Has the revenues grown in last five years? Nope.
Has the profits grown in last five years? Nope.
Is it undervalued? Yes, dearly.
Will it do well in the future? The business has hit terminal growth. What you are getting is simply minimal growth yearly.
Is it a good buy? I guess.

>>>>>>
Moat is overrated
03/02/2019 4:06 PM

Posted by Sslee > 2021-01-18 20:11 | Report Abuse

Above are comment from Philip on IQgroup and Success.

Posted by ThemePlay > 2021-01-18 20:28 | Report Abuse

@Sslee please study the US- China relationship and the latest stimulus that going to launch soon amounted $2trillion green initiatives plan. Most of the information posted already outdated.

Success new product already launch, do you notice? I suggest you take some time to study especially related to EV.