New Straits Times or NST, the renowned news published had on 13th October, 2020 @ 11.53 a.m. published an article titled:
"Ageson targets to ship 50,000 tonnes river sand a month to China, Hong Kong by December"
Previously, I had shared that AGES (7145) will be the new Titan in the sand industry. To recap, the world's infrastructure consume lots of lots of sand - and by lots I mean 50 billion tons of sand are being consumed annually. Holy crap!
AGES had spotted the opportunity and had ventured into the sand business via a joint venture with Bintang Dayang Sdn. Bhd. ("BDSB") and MBI Kedah for river sand and silica sand respectively. If you lookup on MBI Kedah, you would know that it is a Menteri Besar Kedah Incorporated company. WHY ON EARTH would them enter into a JV if AGES was a fraud?
Let me share with you one of the most important key point from the article:
"Liew said the company was expecting better results in financial year (FY) 2021, driven by the venture into sand mining business, which will start in 4Q 2020.
"We are also in the midst of finalising some property development projects that involve the state government.
"This is the next catalyst for Ageson, as these projects include a leasing structure for the next 20 years.
"We want to build Ageson to be a company that can weather business disruptions as a result of the pandemic and a strong dividend yield company," he said.
In short, this means that AGES upcoming financial year results will be damn good, now if you are familiar with the construction industry, it is very common for construction based companies to have low-single digit net profit margin. However for AGES, that's not the case. The company had continued to report a double digit net profit margin for 2 - 3 consecutive quarters!
I understand that you are being affected by the market says that are claiming AGES is a fraud company, and hence why the share price are being affected by such parties. However, being a value investor myself, I strongly believe in next year, AGES could easily reach it’s fair value of RM 0.300 per share.
Do note that I have more than 6 figure worth of investment in AGES, and the more the share price drop, I will collect more – isn’t that what you do in investing, buying the undervalued gem instead of chasing around “shiny objects”?
Anyway, below is a screenshot of the news as well as the actual link to it. Like it or not, AGES is going big next year!