The provision for impairment loss under the pass accounting was only one time basis only.

agreed with pjflower. last week was just a series of sentimental selling which should have come to the end now.

Despite lacklustre net profit growth of 10%, its revenue still grows impressively at 28%. This shows that its business expansion is still very much intact, not affected by Bank Negara credit tightening. So what actually caused its profit growth to slump from 31% to just 10% ? In fact, it is due to a big provision of Rm28mil for impairment loss :-an amount set aside to standby for borrowers defaulting loan as required by accounting laws even though the borrowers have not actually defaulted the loans yet.

The provision for impairment loss under the latest accounting standard FRS 130 is something like this : If a borrower forgets to pay 1 monthly instalment, it is deemed that he has defaulted 25% of the loan, so the accounting law requires that provision be made for 25% of that loan. If the borrower fails to pay 2 instalments consecutively, then provision must go up to 50%. If the borrows fails to pay 3 instalments consecutively(aka 90days delinquency), it is deemed that that borrower has defaulted 100% on the loan, so provision must go up to 100%. Of course, if borrower resume paying instalment, there will be "write-back" in the following quarter. Provision or "write-off" will decrease the net profit of that particular quarter, whereas "write-back" will increase the net profit. I like such conservative accounting because it is based on actual occurrence (borrower defaults on paying loan instalment) and all these figures are very real. Of course, the accountants and auditors will have to do more works, but their additional works benefit us (the shareholders) tremendously.

The deterioration of loan quality was also picked up by its gross impaired loan ratio increased from 2.18% to 2.65%. Not to worry, 2.65% is still very healthy! By comparison, CIMB is at 3.2%.

Full confidence shall be given in Aeon Credit's prudent credit control. The current big provision would be a one-time event and would not be repeated in the future. Trust Aeon Credit as it has 100 years of successful credit management experience in Japan !

Accompanying this profit announcement, Aeon Credit has also declared a commendable mid-year dividend of Rm0.274/share. If we annualise it , the full year dividend will be Rm0.55/share, giving a yield of 3.3%.

Be wiseful when you sell.

The financial results were released around 20 Sept in the past many years except in 2013, it was released one month late due to the decision on CAR matter with announcement of issuance of perpetual bonds. Logically, the financial result should be released as usual time according to the standard Aeoncr’s timing. Hope this info helps.

May Aeoncr continue to rebound / uptrend as another record high revenue & return to be announced around 20-9-14 in line with Aeon's high revenue announced recently?

the 20% is the yard stick in the stock market to judge. people may raise it to higher value but may find extremely little in Malaysia market.

Regardless the sister company Aeon is going to make or lose, Aeoncr is going to make as a credit company. In fact, Aeon is high in valuation. This is a fact that many investors do not know as they normally look at the unit value instead of actual valuation of share. Hope this info helps the investors.

Let’s look at snap shot of Aeoncr at RM17.92:-
ROE is 37% > 20% ( very good management)
Net profit margin is 27% > 20% ( very strong business competitive edge )
Net profit growth rate = 32% > 20% ( extremely strong business expansion, go along with AEON’s expansion )
Neff ratio = 3.1% >2.0%, ( extremely cheap valuation )

agreed with pjflower.

pputeh. Yes, I have got the info from few of my friends who have attended the AGM yesterday in KL. It is indeed the best stock ever. The MD of AeonCr has also responded to some of the investors that they are planning for bonus issue, but did not disclose the date.

There is a prominent stock investor wrote this –
AEONCR had released another stellar set of 4Q14 results on 16Apr2014. Revenue and profit grew very strongly by 41% and 31% respectively. It is even more wonderful this time because the engine of growth does not come from personal loan, but from second hand car financing, a new arena that it had ventured barely a year ago. I just can't imagine how it did it! New venture, yet still score all A+. If not excellent management, what else?

That's why I can sleep very well with this counter, albeit its occasional drastic share price gyration. Warren Buffett said," In the long run, share price and company's earning are 100% co-related. If the company continues to do well, eventually it will be reflected in its share price."

Of course, its motorbike financing division is still performing extremely well.

There is also a decent dividend of Rm0.24 which will go ex on 30June14 and be paid in 16July14.

What is missing in this profit announcement is the long awaited "bonus and share split proposal". Will check it out with AEON Credit top management in the coming 2014 AGM. AEON Japan should not have applied 2 different standards on AEON and AEON Credit!

AEON Credit 2014 AGM's date has not been announced yet. Will let you know once it is announced. I strongly encourage you to attend the AGM to meet and interact with the outstanding Japanese leaders.

As AEON Credit 2014 full year profit had been announced on 15Apr2014, the next profit announcement (1Q2015) will be on 18 June 2015. This coming profit will be reflective of its FY2015 results :

Assuming its net profit grows at 30% again,
so its 2015 EPS = Rm1.22 x 1.30 = Rm1.59
PE ratio = share price / EPS = Rm14.80/ Rm1.59
= 9.3 < 10 (extremely attractive by any standard)

I doubt you can find another counter with PE < 10 and yet net profit grows consistently at > 30%. If you do find one, please let me know. I should be the first one to buy in bulk.

I am smiling for the blessed harvest and expecting more good news coming hopefully soon. possible to split & gives bonus to stimulus the share price and making the stock more liquid. this stock is always my favorite.

Yes, I am thinking the same. Looking forward now...

the next financial result should be released around mid April 2014. at this moment there is no news on bonus and dividend. If Aeon & Aeon Big have good revenue, we can expect Aeoncr prosper. Achieving higher high ( higher than last high of RM18.86 ) is something not impossible, if you look at the pattern of the stock price.

uptrend resuming slow & steady. expecting higher high by June 2014. while Aeon & Aeon Big prosper, Aeoncr takes the ride.

what an attractive stock price for my 2014 accumulation. do not miss this chance to accumulate. I have whacked some today and more on early next week. what a blessed chance. this is going to be my darling stock for 2014.

eftee, the stock price was down until RM10.40 at the end of Jan 2013. The price started to pick up from early Feb until the history high of RM18.80 after GE13. The price down was solely due to the selling down of shares by Aberdeen as part of their portfolio management ( or routine cash-raising to meet redemptions of our Singapore-registered unit trust ? ). As long as Aberdeen stop selling, the price is expected to be up all the way.

老王在800元時買進股王「紅茶店」，隨後一路享受飆漲到1300元的快感。不過之後股價卻暴跌，而在此過程中老王一直不死心，覺得利空是暫時的，越跌要越加碼，最後「紅茶店」跌到只剩100多元，每張股票賠60幾萬….

阿美在26元時買進「豐姨」，之後股價一路震盪下跌，最慘時跌到16元。但阿美覺得利空是暫時的，越跌要越加碼，最後平均成本約在20元左右。在股價落底後，因為業績與景氣轉好，「豐姨」股價又一路回到33元，阿美大賺65%！

看到這裡，大家可能會疑惑，一樣是相信「利空是暫時的」，並且採取「越跌要越加碼」這個動作，為什麼老王慘賠，阿美卻賺錢？
難道投資股票跟賭博沒兩樣，輸贏都只能靠運氣嗎？

問題在哪裡 你發現了嗎？

See http://www.cmoney.tw/notes/note-detail.aspx?cid=22814&nid=7942 for the entire story.
AEONCR is just fit to the 2nd case ( 阿美 case ), which is a fundamentally strong stock and no doubt is seriously undervalue.

welcome pputeh. I just share the facts of this exciting counter for the interest of all investors. Wish you & family have a Joyful Christmas & Blessed New Year.

trading chart shows a beginning of uptrend. hopes it continue

Ya. We do not see anything at this moment but have to wait for announcement in the coming quarter. Worth to hold.

pputeh, true. I have been observing this counter closely. They sold in many batches when the price reach RM13 and RM18. My friend did call Aberdeen and was informed that this was their portfolio management / exercise. They do not want to keep stock with too much total value in hand. But I am still wondering as someday they sell and buy back next few days, it happened if you trace back the record. Of late below RM16, they did buy some back.

there must be something fishy at the back for yesterday selling off. be careful.

Very good news. Really looking forward.

AEONCR is just an exciting company to me.

Facts about present AEONCR
• ROE = 35% > 20% excellent management
• Its net profit margin = 28% > 20% (has very strong competitive edge)
• Its Neff Ratio = 2.5 > 1.5 (very cheap valuation)
• Its gross impaired loan of 1.64% (good risk management)

today has bad volume with bad buying rate, price down. It shows that investors are IMPULSE buying on news. No concrete answer to the deal.

Perpetual Notes is a type of "I Owe U' or bond that have no expiry date as its name perpetual(forever) implies. To make it simple, let's assume that there is such a imaginary product called Perpetual Fixed Deposit with fixed 6% interest rate by ABC Bank. This product will works in such a way that if you deposit Rm10,000 in it, you will be guarantee a yearly interest payment of Rm60 every year for ever and ever, irrespective of whether the prevailing market interest has gone up or done. As the perpetual name implies also, you have to commit your Rm10,000 in the Perpetual Fixed Deposit for ever and ever, or in other words you cannot cash out your original Rm10,000. Of course with such inelastic features, it may not be an attractive product. However, past records have shown that quite many tranches of Perpetual Notes had been launched successfully. The most notable one would be the Perpetual Bond issued by British Government in the 18th Century to fund its war expenses. In fact, our CIMB Bank have also successful launched its Rm200mil Perpectual Bond a year ago. This shows that such a lousy product can also sell in the market provided the yield or the coupon rate is attractive.

sorry, I recalled mistakenly. The previous split was not 10:1, but was 5:1, whereby athe share price was reduced to 80% with addition of 1 share for every 5 shares.

To me, although the MB of Selangor has said something positive but the price deal is still a mystery. Should pull back a bit.

AEONCR deserved to have a whooping 5,32% rise today.

Good news on AEONCR. AEON Credit Service (M) Berhad (the “Company”) has announced that it has obtained authorisation from the Securities Commission Malaysia on 29 October 2013 for the proposed issuance of unrated subordinated perpetual notes (“Perpetual Notes”) pursuant to a proposed perpetual private debt securities programme of up to RM400.0 million in nominal value (“Perpetual Private Debt Securities Programme”). This is a great great news. See http://www.bursamalaysia.com/market/listed-companies/company-announcements/1448021

The uptrend of AEONCR is not affected and you may observe the stock chart has achieved higher high and higher low for the past one year. The next high will be around RM20.20 ( above the previous high of around RM18.60 )

pputeh, you have it at RM3.80 and believed it was before the 10:1 split. Good price. I think the reason why AEONCR do not give dividend this time is because of the CAR ( Capital adequacy ration ) issue, in which they wish to keep the capital as the CAR ratio is now below the Bank Negara's rule of 16%. Remember "growth way outweigh dividend income". I would say RM12.20 is achievable by end of this year if there is no unforeseen circumstances occurs.

pputeh, Rm20.00 at the end of 2013 is achievable. It's target price deserved to be revised higher.

Let me add to PJTrader's remarks. Well, we can say Public Bank also achieved comparable growth in its earlier years, but its net profit growth now has slowed to about 13% due to its sheer size. Lets see Google which have listing 9 years ago without paying any dividend, its share price had skyrocketed from $85 to $1011 today, creating many millionaires within its shareholders. Remember "growth way outweigh dividend income". So I would personally encourage investors to participate in AEONCR’s sustainable growth now! I hardly find a stock like AEONCR that have such whooping financial results. Any fundamentalist could easily support this stock.

cheers..

scottywhyte1897, thank for your sharing on this trading system. thanks for technology advancement too... this is well known in the market since many years ago.

The trend starts turning weak.

WASHINGTON — President Obama and House Republicans failed to reach agreement on a six-week extension of the nation’s borrowing authority during a meeting Thursday at the White House, http://www.nytimes.com/2013/10/11/us/politics/debt-limit-debate.html?_r=0

Sound risky..

buy when weak is the strategy now while the heat from US debt ceiling is escalating now.

This uncertainty involves only AEONCR, not AEON.

Really no idea. Not surprise me if the price will go up tomorrow, but i will not take this risk as the US ceiling height matter is too closed from now. I expect the US Ceiling Height issue will panic the investors and make the price down below 3.00. Then pick up again from there.

In general, Puncak is safer than other stock as we can see the target price is above RM4.00 for sure, either rain or shine. However, we will need to wait until it happens. Meanwhile, as the heat from US Debt Ceiling issue is escalating ( meeting on 17-10-13 ), I would advise to sell off now and buy back after the meeting. We may be able to buy at more attractive price. Regarding the budget, it will be announced ( I saw newspaper stated around 25-10-13 ) after the US meeting on 17-10-13. The timing is good for us if the government wish to announce the water deal. Note : Today's price up for Puncak is temporary good after the news in a Chinese Newspaper ( China Press ) on the target price. I hope my opinion help. Please trade wisely.

Dow Jones Industrial is on apparent downtrend and the Chicago panic index ( CBOE Volatility ) is getting high each day as well. Investors are getting more panic, they are selling more down and down. Perfect inverse correlation, perfect match. Due to the risk of US ceiling height issue ( US to meet on 17-10-13 on this matter ) couple with the shutdown of US government, better sell off all now and buy back KPS after seeing cloud disappears. This ceiling height issue hit me last year and I am now extremely alert.

I guess there is something going on now that makes them delaying the announcement. For information, AEONCR has to settle it's problem on capital adequacy ratio (CAR). See my previous comments on the various options. If they have to exercise Right Issue of 10:1, the share price will be diluted 10%.

Dow Jones Industrial is on apparent downtrend and the Chicago panic index ( CBOE Volatility ) is getting high each day as well. Investors are getting more panic, they are selling more down and down. Perfect inverse correlation, perfect match. Due to the risk of US ceiling height issue ( US to meet on 17-10-13 on this matter ) couple with the shutdown of US government, better sell off all now and buy back Puncak after seeing cloud disappears. This ceiling height issue hit me last year and I am now extremely alert.

Pursuant to paragraph 9.22(1) of the Listing Requirements ("LR"), a listed issuer must announce to the Exchange, an interim financial report that is prepared on a quarterly basis ("quarterly report"), as soon as the figures have been approved by the board of directors of the listed issuer, and in any event not later than 2 months after the end of each quarter of a financial year. Since the end of 2nd quarter was 20 August 2013, the due date for the Company to announce its 2nd quarter results should be 20 October 2013. I hope the result is good although they normally announced their result one month after each quarter of financial year. This quarter they do it "a bit late". Looking forward...

hit 3.10 at 4.37pm.

momentum up start from now, hitting 3.06..