Aeon Credit Service (M) Berhad

$AEONCR / 5139 (AEON CREDIT SERVICE (M) BERHAD)
Research by KENANGA

$AEONCR / 5139 (AEON CREDIT SERVICE (M) BERHAD)
Research by RHB

$AEONCR / 5139 (AEON CREDIT SERVICE (M) BERHAD)
Research by Kenanga

PETALING JAYA: AEON Credit Service (M) Bhd’s prospects remain positive, particularly on its asset quality, receivables and dividend growth.

$AEONCR / 5139 (AEON CREDIT SERVICE (M) BERHAD)
Research by RHB

PETALING JAYA: Analysts have mixed views about AEON Credit Service (M) Bhd following a hiccup in credit costs which are higher than expected.

KUALA LUMPUR: AEON Credit Service (M) Bhd’s net profit fell to RM71.16 million in the second quarter (2Q) ended Aug 31, 2024, from RM120.19 million in the same period last year.

© New Straits Times Press (M) Bhd

$AEONCR / 5139 (AEON CREDIT SERVICE (M) BERHAD)
Research by Kenanga
OUTPERFORM– TP RM8.55

“Digital Banking on the Right Path”

We maintain our OUTPERFORM call and GGM-derived PBV TP of RM8.55 for AEONCR and keeping our forecast. Insights from Aeon Bank reflect challenges faced by the industry with collaboration between license holders and regulators being key to ensure long-term agendas are met. That said, we maintain our 3-star ESG rating on AEONCR (with no ESG-premium to valuations), subject to further assessment on Aeon Bank and the industry’s medium-term ability to cater to the unserved/underserved communities.

Analyst:
Clement Chua
clement.chua@kenanga.com.my

$AEONCR / 5139 (AEON CREDIT SERVICE (M) BERHAD)
Research by RHB
Buy – TP RM8.80

“Off To a Decent Start; Stay BUY"

StayBUY,newMYR8.80TPfromMYR7.90,18%upside,c.4%FY25F(Feb) yield. 1QFY25 results met our and consensus expectations. Financing receivables continued their strong growth momentum and asset quality indicators showed some YoY improvement, though opex – mostly revenue- linked items – were also on the rise. We continue to like AEON Credit Service for its strong growth outlook and decent valuation.

Analysts:
Nabil Thoo
nabil.thoo@rhbgroup.com
David Chong CFA
david.chongvc@rhbgroup.com

$AEONCR / 5139 (AEON CREDIT SERVICE (M) BERHAD)
Research by Kenanga
Outperform – TP of MYR 8.55

“Long-Term Trade Off from Higher Costs”

AEONCR’s 1QFY25 net profit (+7% YoY) met expectations with the recent earnings release indicating results could have been better if not for spends on long-term customer acquisition strategies and on Aeon Bank. The stock’s presently solid ROEs (c.15%) may be taken further in the long-run should its investments pay off. Maintain our forecasts, OUTPERFORM call and GGM-derived TP of RM8.55.

Analyst(s):
Clement Chua
clement.chua@kenanga.com.my

$AEONCR / 5139 (AEON CREDIT SERVICE (M) BERHAD)

OTHERSAEON CREDIT SERVICE (M) BERHAD ("AEON CREDIT" OR "THE COMPANY")
FOURTH (4TH) ISSUANCE OF RM300 MILLION (RM200 MILLION TRANCHE 1 OF SERIES NO. 4 THREE (3) MONTHS AND RM100 MILLION TRANCHE NO. 2 OF SERIES NO. 4 SIX (6) MONTHS) ISLAMIC COMMERCIAL PAPERS ("SUKUK WAKALAH")

Change in Boardroom - MR NAOYA OKADA

Change in Boardroom - MR TSUTOMU OMODERA

Change in Boardroom - MISS FARAH SUHANAH BINTI AHMAD SARJI

Change in Audit Committee - MISS FARAH SUHANAH BINTI AHMAD SARJI

Change in Boardroom - MR MITSUGU TAMAI

Change in Risk Committee - MISS RASHIDAH BINTI ABU BAKAR

Change in Audit Committee - MISS RASHIDAH BINTI ABU BAKAR

Change in Boardroom - MISS RASHIDAH BINTI ABU BAKAR

General Meetings: Outcome of Meeting

General Meetings: Notice of Meeting (Amended Announcement)

General Meetings: Notice of Meeting (Amended Announcement)

PROVISION OF FINANCIAL ASSISTANCE

CIRCULAR TO SHAREHOLDERS IN RELATION TO PROPOSED RENEWAL OF EXISTING SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE AND PROPOSED NEW SHAREHOLDERS' MANDATE FOR ADDITIONAL RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE

Annual Report & CG Report - 2024

General Meetings: Notice of Meeting

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RECURRENT RELATED PARTY TRANSACTIONSAEON CREDIT SERVICE (M) BERHAD ("THE COMPANY" OR "AEON CREDIT")
- PROPOSED RENEWAL OF EXISTING SHAREHOLDERS' MANDATE FOR RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE ("PROPOSED RENEWAL OF EXISTING SHAREHOLDERS' MANDATE") AND PROPOSED NEW SHAREHOLDERS' MANDATE FOR ADDITIONAL RECURRENT RELATED PARTY TRANSACTIONS OF A REVENUE OR TRADING NATURE ("PROPOSED NEW SHAREHOLDERS' MANDATE")

OTHERSAEON CREDIT SERVICE (M) BERHAD ("AEON CREDIT" OR "THE COMPANY")
- ISSUANCE OF SENIOR SUKUK PURSUANT TO A SUKUK WAKALAH PROGRAMME OF RM2.0 BILLION IN NOMINAL VALUE ("SUKUK PROGRAMME") FOR THE ISSUANCE OF SENIOR SUKUK AND/OR SUBORDINATED SUKUK

$AEONCR / 5139 (AEON CREDIT SERVICE (M) BERHAD)
Research by Kenanga
Outperform – TP of RM8.55

“Near-Term Pains for Long-Term Gains”

We maintain our OUTPERFORM call and GGM-derived PBV TP of RM8.55. AEONCR’s guidance for FY25 appears softer withinflationary concerns likely to hang over its lower income customer demographics, albeit reflecting improvements in approvals and collections. Meanwhile, Aeon Bank is likely to only contribute losses in the near-term as it builds up its customer base, which led to our cut in FY25F-FY26F earnings by c.9% each.

Analyst(s):
Clement Chua
clement.chua@kenanga.com.my