SKP Resources started trading on the stock market in 2002. It began as a property company, but early on, the owners smartly shifted the business into making plastic parts.

The founders and managers were an elite team of experts educated in Japan, the UK, and Singapore. In their early years, most of their orders came from the biggest Japanese electronics brands of that era, like Pioneer, Sharp, Fujitsu, and Mitsumi Electronics. These massive companies gave SKP its first big break. At the same time, specialized schools in Japan taught the team the technical skills and smart business habits needed to run a perfectly smooth factory.

The management team brought together different skills in finance, accounting, and plastic technology. Together, they climbed a business ladder step-by-step:

They started by making basic plastic parts.

Next, they began assembling those parts into bigger electronic products.

Finally, as they grew larger and more successful, they built a division to make the internal circuit boards for those electronics.

By doing this, they became a complete, end-to-end manufacturer. They could handle everything for a customer from start to finish, acting as a “one-stop shop.” This made it incredibly hard for clients to leave them. It is very easy to replace a supplier who only sells you a single plastic part. It is nearly impossible to replace a main contractor who builds almost your entire product.

Not to say cannot, tapi lecehlah.

As SKP took on more responsibilities, its profits grew right along with them. Since 2002, the company’s revenue grew by an impressive average of 16.76% every single year. Even better, between 2015 and 2016, sales jumped by a massive 64%. By any standard, this was an amazing success story.

Shareholders made a lot of money, too. Since 2012, the company reliably paid out about half of its yearly profits directly back to investors as dividends. It is easy to see why investors fell in love with this stock.

In recent years, however, the share price has been sliding downward. A manufacturer like SKP faces one major, built-in weakness: you only do as well as your biggest customer does.

I used to think that building wealth was like walking up a steady hill—making 100k this year, 200k next year, and 300k the year after. But in business and the stock market, wealth doesn’t move in a straight line. It comes in waves.

It is exactly like surfing. You look out at the ocean, catch the biggest wave you can reach, find your balance, and ride it as far as it will take you. When that wave slows down and disappears, you have to paddle back out and find an even bigger one. You keep repeating this until you are too tired to continue, or the waves swallow you up.

For SKP Resources, the time has come to find its next big wave.

Management has stated that they are focusing on finding new customers, running their factories better, and cutting costs to survive today’s tough global economy.

Even so, the last few months were a total bloodbath. The company reported a staggering RM37.28 million loss. This massive drop happened because customers cut back on orders due to US tariffs, global political tensions, and shrinking profit margins from having too many empty, unused factories.

The market is now hesitant, and the bulls and bears are fighting it out. Eventually, only one will reign supreme.

What are you thoughts? Bull or bear?