Highlights
KLSE: AEONCR (5139)       AEON CREDIT SERVICE (M) BHD MAIN : Finance
Last Price Today's Change   Day's Range   Trading Volume
15.84   0.00 (0.00%)  15.80 - 15.84  6,100
Trade this stock for as low as 0.05% brokerage. Find out more.

Overview

Market Cap: 3,974 Million
NOSH: 251 Million
Avg Volume (4 weeks):165,544
4 Weeks Range:15.68 - 16.84
4 Weeks Price Volatility (%):
13.79%
52 Weeks Range:14.60 - 17.36
52 Weeks Price Volatility (%):
44.93%
Average Price Target: 17.04
Price Target Upside/Downside: +1.20

Financial Highlight

Latest Quarter | Ann. Date 31-May-2019 [#1]  |  27-Jun-2019
Next QR | Est. Ann. Date: 31-Aug-2019  |  04-Oct-2019
T4Q P/E | EY: 11.69  |  8.55%
T4Q DY | Payout %: 2.83%  |  33.12%
T4Q NAPS | P/NAPS: 6.3498  |  2.49
T4Q NP Margin | ROE: 23.96%  |  21.34%

Headlines

Date Subject
07-Aug-2019 下跌股:永旺信贷RM15.78支撑
01-Aug-2019 Banking - June Loan Growth Stays Subdued
18-Jul-2019 11 things I learned from the 2019 Aeon Credit Service AGM - Young Jia Yi
16-Jul-2019 12 things to know about Aeon Credit Service before you invest - Ian Tai
13-Jul-2019 FRIDAY TAKEAWAY: The taxman cometh for Aeon Credit
11-Jul-2019 政府追税·控永旺信贷
10-Jul-2019 PublicInvest Research Headlines - 10 Jul 2019
05-Jul-2019 下跌股:永旺信贷RM16.70支撑
01-Jul-2019 Banking - Some Pick Up in Loan Growth, But Lacking Momentum
28-Jun-2019 Aeon Credit Service Bhd - Waylaid by Higher Expenses and Funding Cost
28-Jun-2019 AEON Credit - Higher Expenses Weighed Down 1QFY20
28-Jun-2019 AEON Credit Service - 1Q20 Below Expectations
23-Jun-2019 扩M40顾客群·永旺信贷放眼今年赚3亿
10-Jun-2019 Banking - 1Q19 roundup: A Muted Quarter
03-Jun-2019 [转贴] AEONCR - 稳健成长的优质股 - Stock Buddy (大马股市)
08-May-2019 Banking - a 25 Bps Rate Cut, Not Really a Surprise
02-May-2019 Banking - Some Pick-up in Loan Growth, But Lacks Momentum
29-Apr-2019 AEON Credit Service - Keen for a Larger Slice
26-Apr-2019 AEON Credit - Strong Growth Within Expectation
26-Apr-2019 AEON Credit Service - FY19 In Line

Business Background

Aeon Credit Service M Bhd primarily offers credit cards and other loans and financing options to consumers in Malaysia. The company earns more than 80% of its revenue from interest and financing charges on the loans it provides. Fees provide the remaining revenue. Vehicle financing, with a roughly even split between cars and motorcycles, accounts for more than half of the loans the company has outstanding. Remaining loans outstanding are in the personal financing, consumer durables financing, and credit card categories. Aeon Credit issues credit cards under the Visa and Mastercard brand names.
Analyze this stock with MQ Trader system

  7 people like this.
 
764950395 Hi I hold this counter since price was about Rm 3.7 and keep adding to the position when opportunities arise. When you look at the BV of the finance stock , give me an example in which banks counter doesn’t grow their book value? Unless Stop loan growth , loan being written down or a great fine coming from government to lower their book value maybe a case for Goldman Sachs. Important to look at here is the EPS growth , EPS growth rate for this counter is the highest compare to other banking counter even better than public bank , one thing public bank more superiors is the NPL lowest in MALAYSIA. So long NPL for this counter is manageable, Similar NPL with maybank , around 2+% ,I think the management of Aeoncr is doing great to push EPS higher and the intrinsic value for this counter will continue to go up.
17/01/2019 5:37 PM
Choivo Capital 764950395,

At the current valuation, its not a bad idea. The company is a pretty great business.
17/01/2019 5:38 PM
764950395 Addition to the BV, now with central bank impose Basel 3 requirement, you need to keep minimum 7% at all time for tier one capital. So if you growth your loan, your BV will need to grow too.
17/01/2019 5:41 PM
Flintstones Jon, I have no tendency to believe my understanding of things are superior to everybody else unlike Ricky and you.

As a matter of fact, I do recognize the imperfection of my unconventional understanding of the market against the academician consensus. Of course, I do not need you to agree with everything I said.

I agree with most of your assessment of certain investment yardsticks. What about those that I do not agree with? Did you see me harping on the issues I disagree with like heaven god’s send?

A self-perceived superiority in knowledge is always always found in arrogant young men who have not seen enough. Lets not try to become philosophical in proving or disproving financial theories. We are here to make money not become a nobel prize laureate in finance.

I see great potential in you Jon. I am just trying to help. You are still young and you can pick your own path. Become good in investing like long numbers guy or become good in writing for finance newspaper. The choice is yours.
17/01/2019 5:49 PM
Ricky Yeo If you insist on quoting WB, then he also said assume that you spend the same amount putting two children to college, the book value of each child’s education would be the same. But the present value (intrinsic value) of the future payoff might totally different with each of the two children – they can range from zero to many times the costs of education. If you are still convinced about book value, feel free to buy up all stocks with B/V < 1

No offense, you don't like to discuss theory not because your objective is to make money, it is because your theory is so weak that it breaks apart as soon as it comes out your mouth. So you use "I came here to make money" to avoid discussion at all cost.

Sure, you don't have to give a fck about what my theory is. You just have to make sure your theory is right. If they're right, then you make money in the long-term. Who cares what Ricky says. But are they correct? That is for you to answer to yourself.
17/01/2019 6:13 PM
Flintstones Ricky boy, I acknowledge your proficiency in finance academics. I will be very proud if my son had the same theory articulation like you in future.

There are two types of people on i3. The first group is people like me who are here to have fun and make money without any agenda. The second group is people like OTB or Kcchong who are here to sell subscription newsletters.

I assume you are in the latter group or at least, aspiring to be. To be recognize as a top investor here on i3, you need to show people your investment analysis like long numbers guy who recently became one of the most acknowledged member in a short period of time. Think about it, how many years have you been here? And has your newsletter business took off?

Here's a tip for you. Instead of showing off your academician knowledge, why not spend more time writing investment case studies? If you are incapable of doing that or are afraid of the repercussions of being wrong and ridiculed, try channelling your "I am the smartest finance guy on i3 and I need to show everybody I am smart at all costs" on popular members like calvintan, icon3333, stockraider or sslee. I am sure these people are the best targets to market your business since they have a large audience.

Jon have been here a shorter period than you. Even he has shown promising signs to become good at investing by taking a risk publishing his investment reports for all to see. He has his fair share of finance theory but also showed everybody his analytical ability.

You on the other hand have shown nothing. Zero. No credibility whatsover.

I am just trying to help you as a nobody without any agenda on i3.
17/01/2019 6:59 PM
3iii An old post, still relevant.

https://myinvestingnotes.blogspot.com/2016/10/aeon-credit-attractive-alternative.html
17/01/2019 8:30 PM
Ricky Yeo We're stretching this BS too far now. At the end of the day, it doesn't matter whether I am 1st or 100th group; whether I got zero or 100 credibility; whether im really showing off or just helping; the only thing that matters is, is your theories right? Your theory is not answerable to me, but to the market. Can it stand the test of the market? Or break apart easily? That is for you to answer to yourself.

Making money without agenda, what a nice way to put it. Like I'll close my eyes and pretend nothing happened.
18/01/2019 3:56 AM
LouiseS The EPS is fluctuating in last five years, range from 109 to 167 sen per share, PE ratio is reasonable around 11, the ROE is 23%, and dividend yield 2.74%

https://louisesinvesting.blogspot.com/2019/01/preliminary-screening-of-counters-with_25.html
26/01/2019 12:47 PM
(HK1997 again) Philip I realize Ricky is the one who loves to argue for the sake of arguing.
Problem is in investing there is no point in arguing, whether your theories are right it wrong can always be explained away in a biased frame.

It's like looking at the Forex chart,
Daily chart looks like it's losing money.
Weekly chart looks like it's uptrend.
Monthly chart looks like it's downtrend.
But yearly chart looks like it's making tons of money.

There is no wrong or right if you are arguing just based on theories.

But if you have skin in the game just draw the line in the sand, tell everyone what you bought and what price you bought it at. If you make money then you have the right to say whatever you want.

If you lose money be brave enough to admit it.

If you don't have any skin in the game, why spread so much info and theories and arguing? Just agree to disagree, like icon888.

At the very least be like Stockraider wth a price a buy all and a reason for shorting out investing.

Theories without conviction are a waste of time.
27/01/2019 10:36 PM
qqq3 philip

but u are referring to AeonCr version 1.0......but , they are moving nicely to version 2.0....Management not stupid one, and taking necessary steps........with the right issue and iculs.....and new ideas.....

a couple of years ago, people sold down the share while profits are still rising.....I don't know why but I am sure management knows......
27/01/2019 11:26 PM
(HK1997 again) Philip Yeah, I read about their expansion into Philippines and Indonesia and increasing revenues from personal motor financing.

If it does well, things will definitely change.

But until then, will have to wait if the raising of money and cost of capital can bring in the beef.

Clock is ticking.
27/01/2019 11:40 PM
hong2166 http://www.sinchew.com.my/node/1834574/%E6%B0%B8%E6%97%BA%E6%B0%B8%E6%97%BA%E4%BF%A1%E8%B4%B7%E5%89%8D%E6%99%AF%E5%92%8C%E5%90%88%E7%90%86%E4%BB%B7
28/01/2019 5:45 PM
hong2166 Hi all, I am a long term investor of AEONCR. Invested since 2008 till now, it has now become the biggest holdings in my portfolio.
I think AEONCR does not really depends on AEON Mall that much anymore as AEONCR provides loans to buy motorcycle, credit card and many other services. It may soon provides car and housing loan soon if you read bursa malaysia announcement.
Opportunity and Risk always exists concurrently, lets wait and see.

I am glad that i escape from recent small and medium cap price collapse. And I am waiting for AEONCR to go up to 20. Haha
28/01/2019 5:48 PM
Choivo Capital Phillip,

Go and study motorcycle ownership trends in Malaysia.
28/01/2019 5:50 PM
eskay67 Quote from Philip above : “ it's fortunes are tied very closely to aeon co, which is a gruesome business.”
This statement is not correct .... Business and revenue from collaboration between AEON Credit and AEON retail operations in Malaysia is quite small, as reported by management. Vehicle financing and personal financing (money lending) portfolios are biggest contributors, not related to AEON Malls ...
29/01/2019 2:38 PM
(HK1997 again) Philip My bad eskay67, I had assumed that most of the vehicle and motorcycles were sold via the branches near or within the aeon mall locations. My apologies, I am most humbly mistaken. As you can probably surmise in sabah we don't have any aeon malls.

You learn new things every day!

Cheers.

*Deleting my comments now to save future investors misunderstanding.
30/01/2019 12:14 AM
pputeh No worries Philip. We are all here to learn. No one is infallible. What about a comparison between LPI and Aeon Credit. Accepted they are in different spheres of business.
30/01/2019 10:14 AM
value88 Post removed. Why?
30/01/2019 10:14 AM
pputeh Also what effects the recently money lending licence they obtained http://www.bursamalaysia.com/market/listed-companies/company-announcements/6036765
30/01/2019 10:18 AM
Ricky Yeo "If you make money then you have the right to say whatever you want. " - That is how so many investors get fooled (outcome bias) into following others who have 'track record'.

Imagine I told everyone I made 800%+ in Scientex, now many people will come and ask me what do I think about Genting, KNM, Carimin, semi-con or whatever stocks they are interested in. I can of course craft a lucid narrative to explain why these stocks are good or bad and everyone will believe every single world I said since I have made so much return in Scientex. But how do they know if my hypothesis is accurate? They don't. They rely on the heuristic "he picked Scientex, therefore he is good." No one know those stocks are outside my circle of competence.

Just as I don't want to fool myself, fool someone else, or fooled by others (even if unintentionally done others), the best way is theories. If someone can't properly explain his thought process, all bets are off.

If someone tells me "xx stock is undervalued because of low P/E or low BV." - His one sentence theory gives me more insight about the quality of his thinking than how much money he made, all the narrative about the stock etc. Theory is a great way to filter out nonsense. I like theories not because theories are sexy, but because they're effective.
30/01/2019 10:47 AM
3iii AEONCR Financial Information

Price 16.84
Market Capital (RM): 4.224b
Number of Share: 250.84m
EPS (cent): 139.26 *
P/E Ratio: 12.09
ROE (%): 24.60
Dividend (cent): 41.130 ^
Dividend Yield (%): 2.44
Dividend Policy (%): 0
NTA (RM): 5.660
Par Value (RM): 0.500
28/02/2019 10:13 AM
3iii >>>
Ricky Yeo
If someone tells me "xx stock is undervalued because of low P/E or low BV." - His one sentence theory gives me more insight about the quality of his thinking than how much money he made, all the narrative about the stock etc. Theory is a great way to filter out nonsense. I like theories not because theories are sexy, but because they're effective.
>>>


Very insightful.
28/02/2019 10:15 AM
3iii Top Gainers
Stock Last Change
TIMECOM 8.570 +0.370
AEONCR 17.020 +0.320
PENERGY 1.100 +0.195
DAYANG 1.360 +0.180


The top 4 gainers today @ 4.30 pm.

3 of these stocks are actively promoted in i3.

Dayang, Penergy and Timecom has been promoted and highlighted in this forum recently.

Conclusion: i3 is a powerful forum in Bursa


Aeon Cr is in my portfolio.
04/03/2019 4:29 PM
3iii AEONCR Financial Information

Price 16.84
Market Capital (RM): 4.224b
Number of Share: 250.84m
EPS (cent): 139.26 *
P/E Ratio: 12.09
ROE (%): 24.60
Dividend (cent): 41.130 ^
Dividend Yield (%): 2.44
Dividend Policy (%): 0
NTA (RM): 5.660
Par Value (RM): 0.500





My intrinsic value for Aeon Credit is $33.00 per share.

It is trading at a huge discount to its intrinsic value.
12/03/2019 11:36 AM
Nowek So the bottomline is... Aeoncr is a good stock to buy for long term investment, right my boss?
01/05/2019 10:09 PM
remus eh how come keep dropping? any negative news?
03/05/2019 3:45 PM
dnlt 3iii , I think the > Rm30 for the intrinsic value if you put 20% for the expected growth rate. That's is the number over 10 years data but it has slowed down in the recent years. I will be very happy if they can continue with just 15%.
14/05/2019 10:03 AM
rajachulan 15/3 day huge volume close in red
11/3 week huge volume close in red
29/05/2019 9:58 AM
chl1989 the best share in bursa :)
25/06/2019 12:30 PM
Choivo Capital interesting.

I dont like how they didnt explain much.
27/06/2019 6:25 PM
jason007 sell please , don't complaint
28/06/2019 9:28 AM
value_man Don't just look at net profit. Inspect also the revenue, receivables, transaction and financing volume, cash flow, NPL ratio, etc.
28/06/2019 10:08 AM
eskay67 https://www.theedgemarkets.com/article/aeon-credit-posts-14-decrease-1q-earnings-despite-transaction-and-financing-volume-growth
28/06/2019 4:05 PM
3iii Aeon Credit Service Bhd - Waylaid by Higher Expenses and Funding Cost
Author: sectoranalyst | Publish date: Fri, 28 Jun 2019, 5:46 PM

INVESTMENT HIGHLIGHTS

Earnings within expectations
Income growth remains solid on continued momentum of gross financing receivables growth
Dragged by higher impairment losses, marketing expenses and funding cost

Maintain earnings forecast
Maintain NEUTRAL with revised TP of RM17.30 (from RM16.50) due to rollover of valuation
Within expectations. Aeon Credit Service (M) Bhd (ACSM) recorded a 1QFY20 net profit decline of -14.7%yoy. However, this was within our and consensus' expectations at 22.0% of respective full year estimates. Main contributor for the decline in earnings was the higher expenses and finance cost.

Impacted by MFRS 9 and marketing of new products.
Operating expenses rose +34.9%yoy to RM222.1m. Major contributors for this spike was the +63.4%yoy to RM93.3m on impairment loss on receivables and +114.3%yoy growth to RM24.0m in cost associated with advertisement & promotion (A&P). The higher impairment loss was due to early recognition of impaired receivables as required under MFRS 9. However, we noted that this fell -1.3%qoq. Meanwhile, higher A&P expenses were due to the introduction of new products and services.

Funding costs added to the drag.
Funding costs during period grew +33.3%yoy to RM297.5m. This was due to higher interest paid for term loans/financing which went up by +20.8%yoy to RM70.2m as current term loans/financing increased to RM713.3m as at 1QFY20 from RM400.0m as at 4QFY19.

Income growth remained solid.
Total income expanded +15.6%yoy to RM410.2m as revenue grew +16.2%yoy to RM378.6m. Other income rose +8.0%yoy to RM31.6m. Growth of income was supported by strong growth in financing receivables.

Strong growth in financing receivables.
Total financing receivables grew +21.8%yoy to RM9.14b due to increased receivables in credit card, personal financing and motorcycle financing segment. These grew +24.2%yoy to RM789.7m, +30.8%yoy to RM2.59b and +27.8%yoy to RM2.75b respectively. Despite the higher receivables, non-performing loans remains well managed, derived from improved collection of delinquent receivables and new sales. The NPL ratio improved by -12bp qoq to 1.92%.

Source: MIDF Research - 28 Jun 2019
29/06/2019 9:13 AM
chl1989 rm30
01/07/2019 12:10 PM
pang72 FLASH: Government sues Aeon Credit for unpaid taxes
09/07/2019 7:00 PM
pang72 No wonder earn more money... Don't want to pay tax...

1st company sue by PH
09/07/2019 7:01 PM
Trouble Huat haha. tmr will be some selldown. grab while u can
09/07/2019 8:57 PM
Nicholasming91 Ggg limit down
09/07/2019 9:14 PM
pineapple8888 http://dlvr.it/R853L8
10/07/2019 1:21 AM
RainT PH government no money

need find money
10/07/2019 12:08 PM
chl1989 buy more
10/07/2019 1:14 PM
paperplane Hehe. Knock knock. Bayar tax ya
10/07/2019 8:09 PM
VSLSB Fundamentally one of the better non bank institution with low default rate. I dont think tax claim from government will be of substantial impact to its business.
10/07/2019 9:22 PM
remus Huh today plunge 1.45%, huge sell volume. What is the bad news ?
01/08/2019 1:04 PM
VSLSB remus: As long as fundamentals are intact, it shouldn't be an issue. Price will always fluctuate.
02/08/2019 12:52 AM
chl1989 safe heaven
06/08/2019 12:17 AM
chl1989 sma200 broken :(
15/08/2019 2:33 PM
eskay67 Quote from Kenanga research update on 28 June : “While the group may continue to grow its market share, we believe it would come at a necessary enlarged cost of credit.” I believe this is not a conservative view, instead it is a realistic expectation under current market environment ...
22/08/2019 1:18 PM


 

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