You wont get this price again for next 10 years. Unless a big crisis coming. Why don't collect? Since all foreign fund sold.. Now it's consolidating period. Look at RCECAP even go historical high in 52 weeks. This stock potential gain over 40%! Just hold for long-term.
Last I checked, the moratorium offered by AEONCR is 1 month.
*OUTLOOK AND PROSPECTS* FYE2021 has begun with unexpected adversity brought on by the COVID-19 pandemic and other factors. The emergence of COVID-19 has signifi cantly altered the country’s economic, business and operating landscape. Nonetheless, the Company has responded proactively to this crisis to protect customers and staff, while maintaining business operations. The crisis has exacerbated existing operating conditions, but it has also presented opportunities for improvement. COVID-19 has expedited the deployment and rollout of the Company’s digitalisation efforts. It has necessitated a more thorough assessment of present operations towards increasing effi ciency and reducing costs. Equally important, the present scenario has showcased the Board’s and Management’s concern for the welfare of all AEON Credit employees, with everyone being retained despite the downsized operations occasioned by the ongoing Movement Control Order (“MCO”).
Having mapped out the necessary strategies and implementation plans, AEON Credit is ready to meet the business challenges head on and propel itself into the future with courage, determination and strength. The Company is prepared to initiate changes to current business policies, identify potential areas of growth and introduce new products while looking to maximise successful ongoing business sectors
In FYE2020, AEON Credit registered various business and non-financial highlights. This included revenue growth of 17.1% year-on-year to reach a new high of RM1,598.78 million. Profit after tax stood at RM292.05 million, a reduction of 17.6%, attributed mainly to the increased Impairment Loss of 46.0% compared to the previous year.
"attributed mainly to the increased Impairment Loss"
I think its because RCE's PE is 30% lower then RCE. So I think RCE have to catch up to AEONCR's PER. AEONCR's price have already priced in the potential growth, but it has been disrupted by covid19 and the low interest.
I'm not sure whether AEONCR can enjoy lower cost of funds from the lowest interest rates.
March - May 2020 report.. this quarter already covered the worse during MCO period... catch the falling price tomorrow before it rebounce back end of the day....
From the edge this morning, Affin Hwang Capital Research has reaffirmed its "buy" call for AEON Credit Service (M) Bhd at RM9.51, with a higher target price (TP) of RM12.70 (from RM12.30), based on an unchanged price/earnings (P/E) target of 13 times estimated calendar year 2021 (CY21E) earnings per share of 97.9 sen.
Affin Hwang Capital Research has reaffirmed its "buy" call for AEON Credit Service (M) Bhd at RM9.51, with a higher target price (TP) of RM12.70 (from RM12.30), based on an unchanged price/earnings (P/E) target of 13 times estimated calendar year 2021 (CY21E) earnings per share of 97.9 sen
remain upbeat on AEON Credit given its value-chain transformation initiatives, new products and market diversification through its B2C2B (business-to-consumer-to-business) model, which are game changers in this digital age in reaching out to more customers,
The research house said AEON Credit reported poor results for the first quarter ended May 31, 2020 (1QFY21), with net profit declining by 68.5% year-on-year (y-o-y) and 67.2% quarter-on-quarter (q-o-q), largely due to a higher impairment loss on receivables
recent discussion with management on the outlook for 2QFY21, we learnt that credit collection initiatives post the moratorium period in April-May 2020 had yielded better results.
research firm revised down its FY21 net earnings forecast for AEON Credit by 14% as it adjusted net credit cost higher to 412 basis points (bps), from 353bps, and simultaneously revised up interest expense by 20% owing to an increased debt level
for FY22E, we raise our earnings forecast by 6.3% as we account for a lower net credit cost of 304bps (from 334bps). We expect AEON Credit’s gross non-performing loan ratio to ease from a projected 2.3% in FY21E to 1.9% in FY22E,
On a more positive note, the research firm said AEON Credit had stepped up collection initiatives from delinquent borrowers after the moratorium period (April to May 2020) came to an end
Hypermarket is not doing so well nowadays, if AEON close one by one, there will be less customers, and less channel to cross sell AEONCR credit card, loan services ... ? the long term growth prospect will be limited ?
All retail business are affected big time, facing the biggest slump in history with no recovery in near term. If it is bad now, it would get worse after Sept when consumer loan like housing, car & personal loan installment resume. Lots of related counter will go down with it.
Stockiss, for aeon credit is different from banking, their loan collection is still going on. they give 1 month loan collection free during mco only. Sept starting to continue that is for banking.
Date of changeSharesDirector/ Substantial Shareholder20 May 2020Acquired 26,300Aberdeen Asset Management Plc20 May 2020Acquired 26,300Standard Life Aberdeen Plc (refer To Remarks)19 May 2020Acquired 73,700Aberdeen Asset Management Plc19 May 2020Acquired 73,700Standard Life Aberdeen Plc (refer To Remarks)18 May 2020Acquired 6,014,543Aberdeen Asset Management Plc18 May 2020Acquired 6,014,543Standard Life Aberdeen Plc (refer To Remarks)
good Our preferred stock pick is Aeon Credit (ACSM MK, BUY, TP RM12.70 based on 13x CY21E EPS). We believe that there is a value proposition in Aeon Credit as we look to a recovery year in FY22E, with receivables growth of 9% yoy (vs. -3% yoy in FY21E) and a lower net credit cost of 304bps (vs. 358bps in FY21E). AEON Credit remains a key player in consumer financing through credit cards, personal financing, motorcycle financing and used-car financing. Its 'value-chain transformation project' comprises: i) online loan applications/ approvals; ii) a B2C2B digital marketing strategy; iii) the use of AI in its credit assessment model; and iv) process automation to help boost top-line growth and enhance operating efficiency. Aeon Credit's high ROE of 15.8% in FY22E is underpinned by the use of leverage and ability to generate an EIR at 16-17%, vs. traditional banking players at 5%.
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Posted by Hahaqwe > 2020-05-09 20:41 | Report Abuse
You wont get this price again for next 10 years. Unless a big crisis coming. Why don't collect? Since all foreign fund sold.. Now it's consolidating period. Look at RCECAP even go historical high in 52 weeks. This stock potential gain over 40%! Just hold for long-term.