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Sunday, December 27, 2015

AEONCR: Earnings improved

Result Update

For QE30/11/2015, AEONCR's net profit rose 10% q-o-q & y-o-y to RM53 million while revenue rose 7.5% q-o-q or 13.7% y-o-y to RM246 million.

PBT rose 8.4% y-o-y due to 13.7%-increase in revenue which resulted from a 3.6%-growth in total transaction and financing volume and a 29.5%-growth in financing receivables; 65.0%-increase in other opearting incomes (mainly comprised bad  debts recovered, commission income from sale of insurance products and AEON Big loyalty programme processing fee); partially offset by higher ratio of opex to revenue of 60.4% (compared to 58.7% previously due to higher impairment loss provision on financing receivables); and higher funding cost.


Table: AEONCR's last 8 quarterly results


Chart 1: AEONCR's last 34 quarterly results

Valuation

AEONCR (closed at RM11.84 yesterday) is now trading at a PE of 98.4 8.4 times (based on last 4 quarters' EPS of 141 sen). At this PER, AEONCR is deemed fairly attractive.

Technical Outlook

AEONCR is still in a long-term uptrend line, SS with support at RM12.00. 


Chart 2: AEONCR's monthly chart as at Dec 23, 2015 (Source: ShareInvestor.com)

Conclusion

Based on satisfactory financial performance, fairly attractive valuation and still positive technical outlook, AEONCR is rated as a HOLD for now.

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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