Thursday, September 22, 2011

AEON Credit up on solid earnings

KUALA LUMPUR: AEON CREDIT SERVICE (M) BHD [] shares rose on Thursday, Sept 22 after OSK Research maintained its Buy call on the stock at RM4.55 and raised its fair value to RM5.95 from RM5.40.

At 10.40am, AEON Credit rose 15 sen to RM4.70 with 32,800 shares traded.

OSK Research said on Thursday, Sept 22 that AEON Credit's 1HFY12 earnings were above consensus and its full-year forecasts, representing 54.8% and 59.1% of consensus and its full-year forecasts.

Revenue and net profit increased by 25.5% and 52.1% respectively y-o-y, mainly underpinned by higher growth in personal financing (+81%), credit card (+65%) and easy payment schemes (+12.9%) in conjunction with an early Hari Raya festival.

'Asset quality remained strong, with non-performing loans (MPL) improving to 1.64% (1Q12: 1.77%) and CAR stood at 22.2%. A 13.2 sen interim single tier dividend was proposed this quarter. Maintain BUY call on AEON Credit, with a revised fair value of RM5.95,' it said.

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