Friday, April 20, 2012
AEONCR improved on its impressive performance
For 3-month ended 20/2/2012, AEONCR's net profit increased by 10% q-o-q or 43% y-o-y to RM28 million while its revenue increased by 5% q-o-q or 28% y-o-y to RM94 million. AEONCR's bottom-line & top-line continued to grow due to growth in receivables & increased financial transaction volume while operating expenses remained stable.
Table: AEONCR's last 8 quarterly results
Chart 1: AEONCR's last 19 quarterly results
AEONCR (at RM9.05 now) is trading at a PE of 11.4 times (based on last 4 quarters' EPS of 79.68 sen). Given AEONCR's sharp growth of 51% last year, its PEG ratio is only 0.2 time. It would not be prudent to assume that AEONCR can maintain last year's growth and if we dialed back the growth rate to 20%, its adjusted PEG ratio would be 0.5 time- which is still very attractive. As such, I would consider AEONCR to be undemanding at current price.
From Chart 2, AEONCR rallied strong since it broke above the 'horizontal' line at RM3.90-4.00 in April 2011 (here). The near-vertical rise has not experienced any serious correction to date. There were two shallow corrections in January & February this year but the share price did not even threaten the 50-day SMA line (see Chart 3). As such, I would consider any pullback to the 50-day SMA line to be a buying opportunity while a break below that line could be a danger sign.
Chart 2: AEONCR's weekly chart as at April 19, 2012 (Source: Tradesignum)
Chart 3: AEONCR's daily chart as at April 19, 2012 (Source: Tradesignum)
Based on good financial performance, attractive valuation & still positive technical outlook, AEONCR is still rated as a good stock for investment purpose.