Wednesday, December 21, 2011

Aeon Credit gains on firm 3Q earnings

Larger Smaller Reset KUALA LUMPUR (Dec 21): Aeon Credit Services (M) Bhd shares advanced on Wednesday after its net profit for the third quarter ended Nov 20, 2011 rose 57.4% to RM25.25 million from RM16.04 million a year earlier, due mainly to growth in revenue.

At 9.40am, Aeon Credit was up three sen to RM6.60 with 34,500 shares traded.

The company said on Tuesday that its revenue for the quarter was up 31.7% to RM89.81 million from RM68.18 million.

Earnings per share for the quarter was 21.05 sen compared to 13.37 sen in 2010, while net assets per share was RM2.53.

For the nine months ended Nov 20, Aeon Credit's net profit increased to RM67.89 million from RM44.03 million in 2010, while revenue jumped to RM249.99 million from RM195.88 million.

Reviewing its performance, Aeon Credit said the increase in revenue was due mainly to growth in business and receivabled based on increased financing transaction volume as a result of marketing and promotion activities during the festive periods.

OSK Research in a note Dec 21 said Aeon Credit's 9MFY12 earnings were above consensus and its full-year forecasts.

Revenue and net profit expanded by 27.6% and 54.3% year-on-year due to better performance from personal financing, credit card and other income in conjunction with Hari Raya festival, it sid.

'However, credit card base growth slowed down due to BNM regulation on credit card which will take effect next year. ''NPL trended up to 1.93% which is still well below the industry average. CAR stood at 20.8%.

'Maintain Buy with a higher fair value of RM7.20 as we roll forward our valuation to FY13 EPS pegged to 2-year PE band of 9 times,' it said.

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