Posted by petracot > 2012-02-25 21:23 | Report Abuse

Aeon Credit is the market leader of easy payment and consumer financing in Malaysia. Although the customer base comprises mainly low to medium income groups, the profit margin is very high, in the region of 20%. The default rate is very low, around 1.8%, way below industrial average of 2%+.

Recent pay revision of civil servants augurs well for the company's business. The company is expanding every year, opening up new offices in major towns in both East and West Malaysia.

The company pays consistent dividends, increasing every year in tandem with growing income. Dividend of last financial year was 26.5 sen. You can expect dividend of close to 30 sen this financial year. The interim dividend paid was 13.2 sen T.A.

The current price is 7.14 based on last Friday's close. I am predicting that price will move above 7.50 next few months.

Posted by tptan45 > 2012-02-26 23:24 | Report Abuse

Good stock. Petracot, from ur postings I know you are a pro.

Posted by chrisyba > 2012-02-27 08:57 | Report Abuse

really? hahaha.

Posted by petracot > 2012-02-28 15:06 | Report Abuse

Aeon Credit earning is expected to grow steadily with double digit rates, at least for the next few years. The company has a very aggressive marketing strategy to reach the masses: internet, branch promotions, through sister company Jusco.

Annual earning of Last financial year was 52.86 sen per share. The earning of current financial year ending Feb 2012 is expected to be in excess of 70 sen per share.

Posted by petracot > 2012-03-01 21:46 | Report Abuse

Aeon Credit will continue its growth for many years to come because it makes life so easy for anyone who qualifies to apply for easy payment of consumer products.

For example, a branded Flat screen TV costing RM2500 can be taken home for a mere payment of less than RM110 per month over 3 years. The approval process takes only 30 minutes if the applicant has all the supporting documents ready.

The business is very lucrative: the company will make a total profit 54% over 3 years of the TV mentioned above. The default risk is minimum because the company has a very stringent vetting process of would-be customers.

Posted by petracot > 2012-03-02 16:31 | Report Abuse

Aeon Credit has just hit RM7.52 this afternoon. Another potential area of strong growth is Credit Card. Currently, the company has issued around 150,000 cards and the segment has just broken even.

The company also manages the royalty card called J-card for the sister company Jusco. Last year, Aeon Credit launched two-in-one Visa-cum-Jcard for the convenience of Jusco customers.

Jusco has something like 1 million J-card holders throughout Malaysia. Each of these card holder is a potential candidate to be a holder of two-in-one Aeon Credit Visa card. Overtime, many of these J-card holders may just opt to convert whatever cards they have to Aeon Credit two-in-one Visa card, for convenience and easy keeping.

Posted by petracot > 2012-03-12 14:06 | Report Abuse

A tale of two sisters: Aeon & Aeon Credit. Both companies are controlled by the Aeon Group Japan; they are in totally different businesses. Aeon operates something like 28 supermarket cum department stores under the brand name of Jusco, Aeon Credit runs consumer financing business with 30 branches.

Aeon share is priced at RM9, earning at 0.55 with dividend of 0.145 (31 Dec 2011)

Aeon Credit share is priced at RM8.06, expected earning at 0.70 with expected dividend of 0.28 (20 Feb 2012)

In terms of fundamental, Aeon Credit is a better buy. In terms of stability and resilience, Aeon is a better buy because Aeon's business is more defensive and it owns a lot of landed property.

(This article is for information only and represents author's own opinion. Please do your own research if you are intending to buy or sell)

Posted by petracot > 2012-03-15 10:18 | Report Abuse

Aeon Credit hits 8.60 this morning, up by 0.54 since I wrote on March 12. It is now moving into uncharted water. How high it will move is anybody's guess. it is pertinent to note that the financial year results ending Feb 20 is forth coming anytime from now to April 20.

As pointed out last few weeks, the expected whole year earning is 0.70 and whole year dividend 0.28 (interim dividend paid 0.132)

(This article is for information only and represents author's own opinion. Please do your own research if you are intending to buy or sell)

Posted by tptan45 > 2012-03-16 23:49 | Report Abuse

When I said you were good some guy was having doubts. Aeon credit is now at 9 ringgit.
Your comments echoed my thinking when I bought Aeon Credit 6 months back. Good times bad times it will grow.

Posted by petracot > 2012-03-17 00:53 | Report Abuse

Congratulations tptan! You have really struck the right stock. It is very rarely to get a stock that can double within 6 months!

Posted by tptan45 > 2012-03-17 23:45 | Report Abuse

Thank you petracot. I follow your comments closely as they are very logical, clear with facts to back up your opinions. Though I do not go for technical analysis they till make good reading. Keep it up.

Posted by petracot > 2012-04-25 23:44 | Report Abuse

Aeon Credit hit intra-day of RM10 today, that is quite spectacular. Sun Biz reported that Aeon Credit may propose a Bonus issue (yesterday news). Upon query by Bursa Malaysia,Aeon Credit admitted that a corporate exercise has been discussed in the recent Board meeting, without giving any details.

The best policy for existing shareholders is to wait for further announcement. There is no hurry to sell the shares as the company is expecting another good year with strong growth. Current fundamentals are excellent: earning of 79.67 sen per share and annual dividend of 30 sen single tier.

Posted by tptan45 > 2012-04-29 22:27 | Report Abuse

Had a chat with a client today. She was commenting how the local Bank Rakyat is having a surge in personal loans because of the rise in Government pay.
I suppose not too difficult to extrapolate it to Aeon credit.

Posted by petracot > 2012-04-30 21:09 | Report Abuse

Aeon Credit would probably be one of the greatest beneficiaries of Government pay-rise. First, the existing customer base of the company comprises a large percentage of civil servants. Secondly, the company's easy-payment scheme is very wide-spread in major towns of Malaysia including Sabah and Sarawak. This scheme is very popular among civil servants and other bumiputras. Despite slower economic growth this year, Aeon Credit is confident of strong earning growth this year. The potential is all shown up in the current surging share price, RM10.70 today's closing. I won't be surprise to see Aeon Credit hitting RM12 before the end of 2012.

Posted by messiBarca > 2012-05-16 17:25 | Report Abuse

what happen this stock drop heavily today

Posted by alntm > 2012-05-16 17:35 | Report Abuse

other than the market sentiment, point gaps are 08 cts and low volume. big rises but big drops too..

Posted by quyen850906 > 2012-05-16 20:07 | Report Abuse

can buy in or not since drop so much. i think japanese throw the shares..

Posted by petracot > 2012-05-16 21:08 | Report Abuse

Don't panic. Share price came down because of general drop in prices of shares across the board and across the world. Price of Aeon Credit went up powerfully in the last one month because SunBiz reported the possibility of the company giving bonus share with the ratio of 1:1, probably in the next few months. If the report is true, the share should touch RM12 before bonus and probably RM6.50 ex-bonus. Fund Manager Aberdeen holds about 8.4 million shares.

(This article is for information only and represents author's own opinion. Please do your own research if you are intending to buy or sell)

Posted by tptan45 > 2012-05-16 22:15 | Report Abuse

Aeon Credit is probably one of the very few fundamentally strong stocks in the KLSE universe with good visible growth prospects, Greece or no Greece. It's growth will depend a lot on the government's pay, which has gone up significantly in April. That pay rise will fuel Aeon Credit's growth even more.
Aeon Cr's has gone up too fast too soon, that is why it will go down sharply now.

Posted by jellylim > 2012-06-16 08:27 | Report Abuse

May I know what is the share price on 15th may 2012?
Thank you ....

Posted by Rajandaran Kannaya > 2012-06-16 10:28 | Report Abuse

RM10.92

Posted by jellylim > 2012-06-16 14:26 | Report Abuse

thank you very much !!

Posted by petracot > 2012-07-07 12:06 | Report Abuse

Recently, Aeon Credit declared a 1:5 bonus issue. With closing price of RM11.24 per share, the theoretical ex-bonus price will be RM9.36 per share. Due to the fast growing earning and consistent dividend payouts, I believe the ex-bonus price of RM9.36 will gradually climb back to RM11 in a year's time. As such, there is no hurry to sell the share; grow with the company!

Posted by petracot > 2012-07-13 19:12 | Report Abuse

Aeon Credit has just submitted the proposal of bonus issue (1:5) to SC/Bursa for approval, which should be forthcoming in the next one or two months. This type application is normally for formality only. Those who want to ride on the band wagon of consistent earning and dividend growth still have time to do some shopping before the share goes ex-bonus in the next two months.

Posted by petracot > 2012-07-19 13:34 | Report Abuse

The company announced yesterday evening that the bonus issue of 1:5 has been approved by Bursa Malaysia. This means it would not be long before the company determines the date of entitlement. As mentioned before in this forum, the ex-bonus price would very likely rise to pre-bonus price within a year because of the fasting growing earning. This would translate into 20% annual gain.

Posted by kcliew > 2012-07-27 13:00 | Report Abuse

Aeon Credit drops while Aeon gains. Any comment to share?

Posted by kl foong > 2012-07-27 13:51 | Report Abuse

They are not related.

Posted by Winston Paul > 2012-07-27 18:45 | Report Abuse

buy on dips

Posted by kcliew > 2012-07-27 19:00 | Report Abuse

will consider

Posted by petracot > 2012-08-06 21:09 | Report Abuse

Having secured the approval of Bursa Malaysia, Aeon Credit is now seeking approval from shareholders for the Bonus Issue of 1:5 through an EGM on 28 Aug 2012. Again, this approval is only a matter of formality. This means The share will go ex-bonus sometime in September which is also the time to announce the financial results of 2nd Quarter. A set of sterling results is expected.

Posted by petracot > 2012-08-21 14:21 | Report Abuse

Aeon Credit is moving again, hitting intra-day high of RM11.88 on last Friday but closed off peak at RM11.52 before the long Hari Raya week end. Reason? Very simple. August 28 is drawing nearer, the date to approve the Bonus Issues of 1:5 in EGM. Secondly, the 2Q accounting period closed on August 20 which means the financial result of 2Q will be known very soon. As 2Q covered the Hari Raya shopping period, the earning is expected to see significant improvement. At the same time, an interim dividend of around 13.5 sen single tier will be announced before the end of September or early Oct. With these few goodies pending, it is anticipated the share price would probably hit RM12 mark within next 1 or two months.

Posted by KC Loh > 2012-08-22 17:00 | Report Abuse

blardy h*ll, is this stock moving now! darn regret not buying when there was a blip in its pricing!

Posted by Genius Y > 2012-08-22 17:02 | Report Abuse

Congratulations :)

Posted by Winston Paul > 2012-08-22 20:38 | Report Abuse

bOUGHT AT 11.06

Posted by tonylim > 2012-08-22 21:00 | Report Abuse

petracot,
Sorry to chip in here. May I ask if the peak price in June almost hit RM12-00, was it because of the bonus announcement or rumour of BI then?

I would have bought for the BI, damn sold this share 3 ~ 4 price range in 2010 i think

Posted by khoob > 2012-08-22 23:08 | Report Abuse

On 21 June 2012 this stock made an all time high of 12.18. Today the high is at 12.10, and i believe if tomorrow it breaks 12.18 again...there's no more resistance, Happy trading.

Posted by petracot > 2012-08-22 23:49 | Report Abuse

Tonylim Can't remember the exact date of peak price. BI was announced on 18 June 2012 but rumours were circulating around 1 or 2 months earlier.

Posted by petracot > 2012-08-22 23:50 | Report Abuse

Aeon Credit put up a spectacular performance today, adding 46 sen to close at RM11.98 per share. It touched intra-day high of RM12.10 in the morning. It was quite unexpected as most people thought that the push will only take place next 1 or 2 months. Anyway, Aeon Credit will soon be moving into uncharted water. How high it will go is anybody's guess. As a rule of thumb, take the latest earning, annualized it and multiply it by PER of 15 and that will give a rough estimate of fair price.

Posted by hw0706 > 2012-08-23 00:16 | Report Abuse

will it benefit AEON

Posted by petracot > 2012-08-24 22:37 | Report Abuse

Another spectacular day for Aeon Credit, closing at RM12.78 with a hefty increase of 72 sen. Intra-day high touched RM12.90 in the afternoon. It's quite puzzling why the price keep moving north. At this juncture, there are only 3 things unknown about the company. First, Aeon Credit Malaysia has a 20% stake in Aeon Credit India. Although this is a potential earning contributor, the operation has not really taken off yet. Secondly, the circulation of Aeon VISA Credit Card is growing; this could be a potential big earning contributor. Thirdly, 2Q dividend and earning is forth coming. This is quite predictable: dividend probably within the range of 13 to 15 sen while 2Q earning in the range of 20-25 sen per share. None of these factor justify the big push for the last few days. Most likely, it is the frenzy buying of shares ahead of the BI approval on 28 Aug.

Posted by tonylim > 2012-08-24 23:45 | Report Abuse

Relatively small cap and tightly held shares could have help to in frying the share price. I see more up side to run up to egm date

Posted by KC Loh > 2012-08-27 10:51 | Report Abuse

oh my... full bull here!

Posted by petracot > 2012-08-27 20:19 | Report Abuse

Another day of big price push for Aeon Credit, hitting intra-day high of RM13.58 and closed at RM13.30, an increase of 52 sen. Tomorrow is the D-day for BI approval. Actually, there is nothing to speculate on about this event. It is public knowledge that this BI approval is a foregone conclusion. Nevertheless, it is interesting to watch how the stock will behave tomorrow.

Posted by jacklintan > 2012-08-29 09:34 | Report Abuse

This morning already drop 22cents!

Posted by petracot > 2012-08-29 13:19 | Report Abuse

The BI has been duly approved yesterday. The excitement of chasing the stock up to EGM date is over and the share price corrected itself significantly. The next run up will probably take place when the BI entitlement date is announced, which should be forth coming in September.

Posted by petracot > 2012-08-30 13:11 | Report Abuse

The company has announced the ex-bonus issue date: 11/09/2012. No wonder the second leg of rally took off this morning! The share price touched as high as RM13.62 but closed off at RM13.30 for the morning session, up by 42 sen. Most probably, the expected good 2Q result will be announced after the entitlement date of BI. The stock will very likely be actively traded right up to the ex-bonus issue date. There is very high probability that the share price would hit RM14 mark.

Posted by roshan09 > 2012-09-06 08:51 | Report Abuse

how about today? any chances to rise again?

Posted by wachin > 2012-09-06 11:31 | Report Abuse

why keep droping today

Posted by petracot > 2012-09-06 13:50 | Report Abuse

Aeon Credit was sold down to as low as RM11.72 but closed at RM12.10 by noon. This is perhaps an opportune time for those who missed the boat to nibble into the counter. The ex-Bonus date is 11 Sept, which means there is still 3 days left for bargain hunting.

Posted by avenger88 > 2012-09-08 12:10 | Report Abuse

good stock