Friday, 14 October 2016

Aeon Credit

Robust 2H17 results for quarter ending 31Aug16. Against macro headwinds and industry margin-compression pressures, the niche consumer financing player delivered solid QoQ/HoH revenue gains of 17.67%/15.09% (+).

PBT/PAT-wise: parallel uptrends are registered at 13.85%/11.92% and 13.83%/10.49%.

EPS grew in tandem @ 14.79% QoQ (11.18% HoH).

NA +8.26% to MYR5.93 => P/B @ 2.53x.

Interim dividend of MYR0.305 is declared payable on 7Nov16 - with expected full year DPS @ MYR0.64 yielding expected DY @ 4.01% (0.601/14.98) - 4.27% (0.64/14.98).

Assuming 1H's contribution @ c. 47%, expected full year earnings @ MYR1.64. @ 10x-12x of fPE=>TP @ 16.42-19.70.

Next key earnings season: c. 16-22Dec16, 21Apr17 (Div. ex/pay by c. 24Jun17/15Jul17).

TP by Kenanga/AffinHwang 5Oct16: 17.76/16.60 (+18.56%/+10.81%)

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