petracot was right about

AEONCR above $8.50 by 31-Dec-2012

  • target price: $8.50 ( 8.14 % in 299 days)
  • price when predicted: $7.86
  • current price: $13.96
  • 1812 days pass target date.
  • Exceeded $8.50 on 26-Apr-2012
  • Highest Price $13.72 on 05-Nov-2012
A tale of two sisters: Aeon & Aeon Credit. Both companies are controlled by the Aeon Group Japan; they are in totally different businesses. Aeon operates something like 28 supermarket cum department stores under the brand name of Jusco, Aeon Credit runs consumer financing business with 30 branches.

Aeon share is priced at RM9, earning at 0.55 with dividend of 0.145 (31 Dec 2011)

Aeon Credit share is priced at RM7.86, expected earning at 0.70 with expected dividend of 0.28 (20 Feb 2012)

In terms of fundamental, Aeon Credit is a better buy. In terms of stability and resilience, Aeon is a better buy because Aeon's business is more defensive and it owns a lot of landed property.
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Aeon Credit hit 8.73 at today's closing, up by 0.87 since the last posting on March 6. It is now moving into uncharted water. How high it will move is anybody's guess. it is pertinent to note that the financial year results ending Feb 20 is forth coming anytime from now to April 20.

As pointed out in the last posting, the expected whole year earning is 0.70 and whole year dividend 0.28 (interim dividend paid 0.132)

(This article is for information only and represents author's own opinion. Please do your own research if you are intending to buy or sell)
Aeon Credit hit intra-day of RM10 today, that is quite spectacular. Sun Biz reported that Aeon Credit may propose a Bonus issue (yesterday news). Upon query by Bursa Malaysia,Aeon Credit admitted that a corporate exercise has been discussed in the recent Board meeting, without giving any details.

The best policy for existing shareholders is to wait for further announcement. There is no hurry to sell the shares as the company is expecting another good year with strong growth. Current fundamentals are excellent: earning of 79.67 sen per share and annual dividend of 30 sen single tier.
Aeon Credit would probably be one of the greatest beneficiaries of Government pay-rise. First, the existing customer base of the company comprises a large percentage of civil servants. Secondly, the company's easy-payment scheme is very wide-spread in major towns of Malaysia including Sabah and Sarawak. This scheme is very popular among civil servants and other bumiputras.

Despite slower economic growth this year, Aeon Credit is confident of strong earning growth this year. The potential is all shown up in the current surging share price, RM10.70 today's closing. I won't be surprise to see Aeon Credit hitting RM12 before the end of 2012.
Don't panic. Share price came down because of general drop in prices of shares across the board and across the world. Price of Aeon Credit went up powerfully in the last one month because SunBiz reported the possibility of the company giving bonus share with the ratio of 1:1, probably in the next few months. If the report is true, the share should touch RM12 ( it touched 11.50 last week)before bonus and probably RM6.50 ex-bonus. Fund Manager Aberdeen holds about 8.4 million shares.

(This article is for information only and represents author's own opinion. Please do your own research if you are intending to buy or sell)
Recently, Aeon Credit declared a 1:5 bonus issue. With closing price of RM11.24 per share, the theoretical ex-bonus price will be RM9.36 per share. Due to the fast growing earning and consistent dividend payouts, I believe the ex-bonus price of RM9.36 will gradually climb back to RM11 in a year's time. As such, there is no hurry to sell the share; grow with the company!

(This article is for information only and represents author's own opinion. Please do your own research if you are intending to buy or sell)
Aeon Credit has just submitted the proposal of bonus issue (1:5) to SC/Bursa for approval, which should be forthcoming in the next one or two months. This type application is normally for formality only. Those who want to ride on the band wagon of consistent earning and dividend growth still have time to do some shopping before the share goes ex-bonus in the next two months.
The company announced yesterday evening that the bonus issue of 1:5 has been approved by Bursa Malaysia. This means it would not be long before the company determines the date of entitlement. As mentioned before in this forum, the ex-bonus price would very likely rise to pre-bonus price within a year because of the fasting growing earning. This would translate into 20% annual gain.
Having secured the approval of Bursa Malaysia, Aeon Credit is now seeking approval from shareholders for the Bonus Issue of 1:5 through an EGM on 28 Aug 2012. Again, this approval is only a matter of formality. This means The share will go ex-bonus sometime in September which is also the time to announce the financial results of 2nd Quarter. A set of sterling results is expected.
Aeon Credit is moving again, hitting intra-day high of RM11.88 on last Friday but closed off peak at RM11.52 before the long Hari Raya week end. Reason? Very simple. August 28 is drawing nearer, the date to approve the Bonus Issues of 1:5 in EGM. Secondly, the 2Q accounting period closed on August 20 which means the financial result of 2Q will be known very soon. As 2Q covered the Hari Raya shopping period, the earning is expected to see significant improvement. At the same time, an interim dividend of around 13.5 sen single tier will be announced before the end of September or early Oct. With these few goodies pending, it is anticipated the share price would probably hit RM12 mark within next 1 or two months.
Aeon Credit put up a spectacular performance today, adding 46 sen to close at RM11.98 per share. It touched intra-day high of RM12.10 in the morning. It was quite unexpected as most people thought that the push will only take place next 1 or 2 months. Anyway, Aeon Credit will soon be moving into uncharted water. How high it will go is anybody's guess. As a rule of thumb, take the latest earning, annualized it and multiply it by PER of 15 and that will give a rough estimate of fair price.
Another spectacular day for Aeon Credit, closing at RM12.78 with a hefty increase of 72 sen. Intra-day high touched RM12.90 in the afternoon. It's quite puzzling why the price keep moving north. At this juncture, there are only 3 things unknown about the company. First, Aeon Credit Malaysia has a 20% stake in Aeon Credit India. Although this is a potential earning contributor, the operation has not really taken off yet. Secondly, the circulation of Aeon VISA Credit Card is growing; this could be a potential big earning contributor. Thirdly, 2Q dividend and earning is forth coming. This is quite predictable: dividend probably within the range of 13 to 15 sen while 2Q earning in the range of 20-25 sen per share. None of these factor justify the big push for the last few days. Most likely, it is the frenzy buying of shares ahead of the BI approval on 28 Aug.
The BI has been duly approved yesterday. The excitement of chasing the stock up to EGM date is over and the share price corrected itself significantly. The next run up will probably take place when the BI entitlement date is announced, which should be forth coming in September.
The company has announced the ex-bonus issue date: 11/09/2012. No wonder the second leg of rally took off this morning! The share price touched as high as RM13.62 but closed off at RM13.30 for the morning session, up by 42 sen. Most probably, the expected good 2Q result will be announced after the entitlement date of BI. The stock will very likely be actively traded right up to the ex-bonus issue date. There is very high probability that the share price would hit RM14 mark.
Aeon Credit was sold down to as low as RM11.72 but closed at RM12.10 by noon. This is perhaps an opportune time for those who missed the boat to nibble into the counter. The ex-Bonus date is 11 Sept, which means there is still 3 days left for bargain hunting.
Those who were brave during the last few days of market downturn would have been rewarded. Aeon Credit rebounded strongly from the low of RM11.72 to closed at RM12.92 on Friday.

Monday is the last day of trading Aeon Credit shares on Cum-BI basis. Let's watch the closing price at the end of Monday and calculate the theoretical ex-BI price.
Aeon Credit closed today at 12.78 and tomorrow the counter goes ex-BI. Based on this price, the theoretical ex-BI is RM10.65 per share. The price may fluctuate between RM10 to RM11 tomorrow onward. However, with the strong earning growth of the company, it is probable that the share price would hit RM12 again before the end of 2013.
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