petracot was right about

AEONCR above $7.50 by 31-May-2012

  • target price: $7.50 ( 4.90 % in 95 days)
  • price when predicted: $7.15
  • current price: $13.96
  • 2026 days pass target date.
  • Exceeded $7.50 on 02-Mar-2012
  • Highest Price $11.50 on 11-May-2012
Aeon Credit is the market leader of easy payment and consumer financing in Malaysia. Although the customer base comprises mainly low to medium income groups, the profit margin is very high, in the region of 20%. The default rate is very low, around 1.8%, way below industrial average of 2%+.

Recent pay revision of civil servants augurs well for the company's business. The company is expanding every year, opening up new offices in major towns in both East and West Malaysia.

The company pays consistent dividends, increasing every year in tandem with growing income. Dividend of last financial year was 26.5 sen. You can expect dividend of close to 30 sen this financial year. The interim dividend paid was 13.2 sen T.A.
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Aeon Credit earning is expected to grow steadily with double digit rates, at least for the next few years. The company has a very aggressive marketing strategy to reach the masses: internet, branch promotions, through sister company Jusco.

Annual earning of Last financial year was 52.86 sen per share. The earning of the current financial year ending Feb 2012 is expected to be in excess of 70 sen per share.
Aeon Credit will continue its growth for many years to come because it makes life so easy for anyone who qualifies to apply for easy payment of consumer products.

For example, a branded Flat screen TV costing RM2500 can be taken home for a mere payment of less than RM110 per month over 3 years. The approval process takes only 30 minutes if the applicant has all the supporting documents ready.

The business is very lucrative: the company will make a total profit 54% over 3 years of the TV mentioned above. The default risk is minimum because the company has a very stringent vetting process of would-be customers
Aeon Credit has just hit RM7.52 this afternoon. Another potential area of strong growth is Credit Card. Currently, the company has issued around 150,000 cards and the segment has just broken even.

The company also manages the royalty card called J-card for the sister company Jusco. Last year, Aeon Credit launched two-in-one Visa-cum-Jcard for the convenience of Jusco customers.

Jusco has something like 1 million J-card holders throughout Malaysia. Each of these card holder is a potential candidate to be a holder of two-in-one Aeon Credit Visa card. Overtime, many of these J-card holders may just opt to convert whatever cards they have to Aeon Credit two-in-one Visa card, for convenience and easy keeping.
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