Wednesday, 22 March 2017

Aeon Credit (22.3.2017)

The revenue, profit before tax and EPS continue to grow.

In its latest quarter, it grew its quarterly revenue 14% and its quarterly EPS 27.4% when compared to the previous year same quarter.

Its share price peaked at RM 18.86 per share in 2013.

Since then its share prices have been range bound between RM 10 to RM 15 per share.

Its EPS continued to grow at a good rate during the same period from 93.1 sen per share to 158.5 sen per share.

The rising EPS and the flat share prices over the last 3 years, resulted in Aeon Credit trading at very low PE of below 10.

At today's closing price of RM 16.60 per share, it is trading at a PE of 10.5.

This stock pays dividend over the years.  Its dividend payout ratio has been around 38%.

It has increased its dividends yearly over the years from 25 sen per share in 2012 to 59.5 sen per share in 2016 (more than double over this period).

At its present price of RM 16.60 per share, its dividend yield is 3.58%.

This dividend yield should appeal to those who are investing for income too.

Projecting into the future, Aeon Credit should continue to grow its revenues, profit before tax and EPS.

Those who own Aeon Credit for the long term should enjoy a satisfactory total return from its capital appreciation and its growing dividends.

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