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Sunday, July 01, 2018

AEONCR: Earning Rebounded Strongly

Result Update

For QE30/5/2018, AEONCR's net profit rose 21% q-o-q or 31% y-o-y to RM99 million while revenue rose 5% q-o-q or 8% y-o-y to RM326 million. Pre-tax profit rose 25% q-o-q mainly due to lower impairment loss on financial receivables.


Table: AEONCR's last 8 quarterly results

As noted previously, AEONCR's revenue & profits are at a new "high" territory!


Graph: AEONCR's last 44 quarterly results

Valuation

AEONCR (closed at RM14.40 last Friday) is now trading at a PE of 10.7 times (based on last 4 quarters' EPS of 135 sen). At this PER, AEONCR is deemed fairly attractive. In addition, it pays a decent dividend with DY of 2.9% (based on last year dividend of  41.13 sen).

Technical Outlook

Despite recent correction, AEONCR's uptrend seems intact as the decline was stopped by the 30-week EMA line.


Chart 1: AEONCR'sweekly chart as at Jun 29, 2018 (Source: Shareinvestor.com)


Chart 2: AEONCR's monthly chart as at Jun 29, 2018 (Source: Shareinvestor.com)

Conclusion

Based on satisfactory financial performance, fairly attractive valuation, steady growth prospect & positive technical outlook, AEONCR is a good stock for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

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