Look like world market is about to crash again slightly similar to what happened in March this year.... Oil prices down together with covid-19 fear.....
Ages stock is good to invest. No doubt about it but external factors hit their prices to go lower..... Maybe it could go lower to 0.10 cents in coming days.
Blog Headlines (by Date) Blog Index Top 5 Things I Learnt From Reading The Annual Report Of This Undervalued GEM. Author: jvjason5292 | Publish date: Fri, 30 Oct 2020, 11:36 PM
Dear Investors,
With the upcoming US Presidential Election, I noticed that some investors are not fully prepared for the plummet in terms of share price. But being a value investor myself, It is important to note that value is always the number factor when concluding whether to invest in, or not in a company.
Now that having thoroughly studied the Annual Report of this undervalued gem, there are several things that I would like to highlight share to existing investors of this company / or new investor.
Key Note #1 – The company is focused on continuously creating more shareholder value. Now, when a company mention “shareholder value”, I know that a lot of people would define it as the dividend or share price increase. But being an actual INVESTOR of a company, we need to understand that ultimately, the growth of the company is the utmost important factor to consider.
To recap, AGESON had achieved a 3 to 4 digit increase in their bottom line since FY 2019 Q4, for 5 consecutive quarters.. What other company can deliver such exceptional results, and trade at single digit P/E multiple ?!
Key Note #2 – The company will and has diversify into more profitable and sustainable businesses. Now, if you are following our posts previously, you should note that AGESON is one of the rare companies that achieved double digit net profit margin amongst the list of listed companies. In my humble opinion, the only company that is capable of getting such margin would be KERJAYA PROSPEK GROUP BERHAD.
But with such margin and less than 5 times P/E multiple? NONE.
Key Note #3 – They are aiming to introduce an innovative business model. Having said that the company bottom line and margins are superb, let’s talk about business model. The company currently is engaging in the construction, property development as well as building material trading. In short, we understand this as a semi-complete value chain business model, so what does this means?
This means that from raw material sourcing (Trading Arm), to actually manufacturing (In this case, the Construction Arm) to selling the end products (Property Development) are managed by AGESON themselves. With the company’s experience in this field, it is not hard to expect AGESON can continue to sustain such growth in the future!
Key Note #4 – Adapting the new norm without sacrificing margins. During the COVID-19 pandemic, resilient sector such as bank still get hit in terms of earnings. But look at past 2 quarters from AGESON, do you see decline in growth or their profit fallen into the red territory?
The answer is no! They continue to grow and expand their D Cube Modern Townhome, Batu Ferringgi Hotel and Serviced Apartment Project as well as Sungai Pandan Government Low Cost House project despite the challenges. I assure you, that AGESON is definitely an undervalued gem waiting to be discovered by the general investors!
Key Note #5 – Recently acquired a parcel of land in Batu Ferringhi which in the future would expand more property development works. My way of defining a good and bad company is to check WHAT DO THEY DO when facing challenges in the industry. Despite the slow down of housing sales as well as banks are getting more reluctant in giving out loans, AGESON is eager to expand their business, what does this mean?
Simple – they can sell more houses despite the challenge!
I’m not going to jump into the numbers as they are repeatedly mentioned in my previous posts, I want you to focus on the business model as well as good management of this company, in which this is the only way to profit handsomely in the stock market.
Instead of glove counters, why not look for a potential 5 to 6 times bagger which trading at single digit P/E multiple??
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
JuliusCeasar
1,216 posts
Posted by JuliusCeasar > 2020-10-18 13:35 | Report Abuse
Should be good.