To be read alongside the attached excel – aeon-credit

*Finally able to sit down and digest the quarterly report.

*Another stellar quarterly performance by Aeon Credit – note that loan-out grew from 5921mil to 6212mil (5%) per quarter and borrowing-in grew from 5230mil to 5762 (10%)!

*Also note that most of the borrowing-in are yet to be utilized, ACR has a historical loan-deposit ratio of 110-113% (currently: 108%).

*A slight but significant increase in recoverable of bad debt, and lower NPL.

*With huge increase in borrowing-in and consistent loan-out ,we can tell that ACR is ever so bullish on its lending business.

*Based on that quantum, we forecasted that next quarter loan-out to be around 6600mil, and with that, we can estimate a topline of ~300mil. This will translate to a PAT of 72mil.

*However, ever so sceptical, we will assume a 65mil distributable quarterly PAT moving forward, this will translate to a 260mil annual PAT. A good price to pay for ACR will be around 9x-10x, which is around RM17.15.