Monday, April 22, 2013

AEONCR- higher profit, higher share price

Result Update

For QE20/2/2013, AEONCR's net profit rose 12% q-o-q or 41% y-o-y to RM39 million while revenue rose by 8.5% q-o-q or 39.7% y-o-y to RM132 million.  The q-o-q improvement in pre-tax profit was due mainly to growth in receivables and increased financing transaction volume in the period.

Table: AEONCR's last 8 quarterly results

Chart 1: AEONCR's last 27 quarterly results


AEONCR (closed at RM14.70 last Friday) is now trading at a PE of 15.6 times (based on last 4 quarters' EPS of 94.3 sen). Based on earning CAGR of 40-50% (over the pst 3 years), AEONCR is deemed reasonably valued, with potential to command a PE of 17 times. On that basis, AEONCR may continue to rise to RM17.00.

Technical Outlook

AEONCR has recently broken above its recent high of RM13.50. With this breakout, the stock is expected to continue its prior uptrend.

Chart 2: AEONCR's weekly chart as at April 19, 2013 (Source: quickcharts)


Based on good financial performance, reasonable valuation & positive technical outlook, AEONCR remains a good stock for long-term investment.

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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