Stock Name: AEONCR
Company Name: AEON CREDIT SERVICE (M) BHD
Research House: HWANGDBS
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) raised FY12-FY13F earnings for Aeon Credit by 13% and 11% respectively following the strong 1Q results.
It said on Wednesday, June 15 that it had factored higher revenue contribution from credit cards (as we assume higher percentage of outstanding credit cards purchases of 70%-75% from 45%-46%) and stronger fee income.
'Accordingly, our TP is raised to RM4.80, based on 7 times FY12 EPS. Maintain Hold,' it said.
HDBSVR said 1QFY12 net profit of RM19.2 million (+45% y-o-y) comprised 26% of its initial full-year forecast of RM72.7 million; above expectations. This was lifted by higher interest income recognized and other fee income and charges as total revenue grew 22.5% to RM77.1 million.
Key revenue drivers were personal financing and credit card segments which jumped 78% (to RM8.8m) and 55% (to RM13.1m), respectively. General easy payment (GEP) and motorcycle easy payment (MEP) schemes remain the breadwinners contributing 72% in total to group revenue.
'With greater economies of scale, EBIT margin increased 5.2 percentage points to 45.5% (vs 1QFY11: 40.3%). Sequentially, net profit declined slightly by 1% despite higher revenue of 5% (considering 1Q is typically a weak quarter).
'This was also dragged down by higher operating expenses (+8.8%) such as promotions, personnel and administration expenses. Meanwhile, 1QFY12 average funding cost and NPL ratio remained stable at 4.46% (vs 1QFY11: 4.41%) and 1.77% (vs 1QFY11: 1.80%) while CAR ratios slipped to 23.7% (vs 1QFY11: 25.4%), respectively,' it said.
Company Name: AEON CREDIT SERVICE (M) BHD
Research House: HWANGDBS
KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) raised FY12-FY13F earnings for Aeon Credit by 13% and 11% respectively following the strong 1Q results.
It said on Wednesday, June 15 that it had factored higher revenue contribution from credit cards (as we assume higher percentage of outstanding credit cards purchases of 70%-75% from 45%-46%) and stronger fee income.
'Accordingly, our TP is raised to RM4.80, based on 7 times FY12 EPS. Maintain Hold,' it said.
HDBSVR said 1QFY12 net profit of RM19.2 million (+45% y-o-y) comprised 26% of its initial full-year forecast of RM72.7 million; above expectations. This was lifted by higher interest income recognized and other fee income and charges as total revenue grew 22.5% to RM77.1 million.
Key revenue drivers were personal financing and credit card segments which jumped 78% (to RM8.8m) and 55% (to RM13.1m), respectively. General easy payment (GEP) and motorcycle easy payment (MEP) schemes remain the breadwinners contributing 72% in total to group revenue.
'With greater economies of scale, EBIT margin increased 5.2 percentage points to 45.5% (vs 1QFY11: 40.3%). Sequentially, net profit declined slightly by 1% despite higher revenue of 5% (considering 1Q is typically a weak quarter).
'This was also dragged down by higher operating expenses (+8.8%) such as promotions, personnel and administration expenses. Meanwhile, 1QFY12 average funding cost and NPL ratio remained stable at 4.46% (vs 1QFY11: 4.41%) and 1.77% (vs 1QFY11: 1.80%) while CAR ratios slipped to 23.7% (vs 1QFY11: 25.4%), respectively,' it said.
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