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Thursday, December 20, 2012

AEONCR- strong growth continued

Results Update

For 3-month ended 20/11/2012, Aeoncr's net profit increased by 9% q-o-q or 38% y-o-y to RM35 million while revenue increased by 85 q-o-q or 35% y-o-y to RM121 million. The improvement was attributable to growth in receivables & increased financing transaction volume.


Table: Aeoncr's last 8 quarterly results


Chart 1: Aeoncr's last 22 quarterly results

Valuation

AeonCr (closed at RM12.08 yesterday) is now trading at a PE of 14 times (based on last 4 quarters' EPS of 86.46 sen). At PE of14 times, AeonCr looks fairly valued. However, with CAGR of 18% over the past 3 years, its PEG ratio is 0.8 time. This means that the stock has room to appreciate- potentially another 25% to RM15.00 (until PEG ratio of 1 time).

Technical Outlook

AeonCr is still in an uptrend. Its immediate horizontal support is at RM11.00-11.10.


Chart 2: Aeoncr's weekly chart as at Dec 20, 2012_11.30am (Source: Quickcharts)

Conclusion

Based on satisfactory financial performance, reasonably attractive valuation & positive technical outlook, I revised the rating for AeonCr back to a good BUY for long-term investment.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, AeonCr.

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