AEONCR: Earnings rose 23.5% y-o-y

Result Update

For QE30/11/2018, AEONCR's net profit rose 8.1% q-o-q or 23.5% y-o-y to RM87 million while revenue rose 4.6% q-o-q or 11.6% y-o-y to RM349 million. Pre-tax profit rose 10.1% q-o-q to RM118.072 million mainly due to lower impairment loss on financing receivables of RM61.514 million for the current quarter and RM95.263 million for the immediate preceding quarter.


Table: AEONCR's last 8 quarterly results


Graph: AEONCR's last 46 quarterly results

Financial Position

AEONCR's financial position is deemed acceptable with current ratio at 1 time while gearing ratio is elevated 4.3 times.

Valuation

AEONCR (closed at RM14.84 yesterday) is now trading at a PE of 11 times (based on last 4 quarters' EPS of 134.68 sen). At this PER, AEONCR is deemed fairly attractive. In addition, it pays a decent dividend with DY of 2.85% (based on last year dividend of  42.25 sen).

Technical Outlook

AEONCR is in an uptrend. Its immediate support is the horizontal line at RM14.70.


Chart: AEONCR's weekly chart as at Dec 20, 2018 (Source: Malaysiastock.biz)

Conclusion

Despite satisfactory financial performance, AEONCR is still a good stock for long-term investment in view of its fairly attractive valuation and still positive technical outlook.

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.