Dear readers,

I’ve discovered over the past few days, there seems to be an influx of capital flow into the construction sector of Malaysia. Despite the overall construction index had seen a total drop of 16.89% in the past 1 year, the company, AGESON BERHAD (“AGES”) had jumped in stock price for 18.18% in the past one year, why is that so?

I believe this was largely caused by the solid earnings prospects of the company, in which they are able to deliver stunning results in financial year 2020, which are RM 6.83 Million, RM 8.34 Million and RM 8.39 Million respectively for Q1, Q2, and Q3.

Are there any comparable listed construction company that sustain this level of profit? As far as I concern, none of them achieved this level of profit! The momentum of this company, despite being affected by some negative news in which RHB had a claim with them was debunked by the company as it was a baseless claim from them. The market even suspects RHB wants this piece of land from them!

Anyhow, from technical perspective, I strongly believe this is the outperformer of the whole industry. In the blue box, this is what we called the consolidation period of the company, where the direction of the company remain undecisive until a certain breakout upwards or downwards. But if we were to think logically, are there any factors that could drag AGES’s share price down? Even with the implementation of the new MCO, the company share price remains largely unaffected, and this shows the stickiness of investors on this company.

Moving forward, it would not be surprise that the company would had a golden cross in MACD as the share’s momentum is heading upwards. As of now, it is also supported at most levels of EMA, which reinforce the strong support of AGES.

I believe this counter could hit 20.0 cents before or by Chinese New Year as the general economy of Malaysia recovers. You do not want to miss out this counter!