Business sector: financing services
Provide financing services(subdivided into 3 categories: vehicles financing, payment business and personal financing)
*the newly acquired insurepro company has not contributing significantly in revenue and profit yet.
Stock information as on 15/7/2022:
Market capital: 3457 million
Number of share: 255 million
Share price: 13.54
NTA 8.7
RM million | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (YTD) |
Revenue | 1235 | 1366 | 1599 | 1577 | 1525 | 390.6 |
PBT | 398.4 | 472 | 390.5 | 324.8 | 365.4 | 215.5 |
PAT | 300.1 | 354.6 | 292.0 | 234.0 | 364.5 | 163.1 |
Financing receivable
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 (YTD) |
Receivable (RM billion) | 7.3 | 8.7 | 10.4 | 10.1 | 9.9 | 10.0 |
NPL | 2.33% | 2.04% | 1.92% | 2.46% | 2.7% | 2.53% |
CTI ratio | - | 52.3% | 59% | 60% | 49.7% | 34.8% |
Looking gross receivables into past 4 quarters and latest quarter (after MCO last year)
| Q1 22 | Q2 22 (April to June 2021)* | Q3 22 | Q4 22 | Q1 23 |
Receivable | 10.1 | 9.6 | 9.6 | 9.9 | 10.0 |
*Total lockdown started on 1st June 2021.
NPL: non performing loan, CTI: cost to income ratio
The higher the gross receivable, it would mean it give out more loan (better business)
The lower the NPL, it would mean less bad debt.
The lower CTI ratio, it would mean less cost to generate income.
Latest acquisition:
1. Acquisition of insurepro sdn bhd on Aug 2021 in which it intends to transform it into insuretech company
https://www.theedgemarkets.com/article/aeon-credit-gets-approval-bnm-insurance-broker-acquisition
2. Islamic digital bank license on 29 April 2022
AEONCR target to launch its digital banking services on 1st quarter of 2024, with target to break even at 5th year of operation (?2029).
Dividen policy
At least 30% dividen payout
Risks associated with business
1. Most digital bank will operate at loss and take time to become profitable.
https://fintechnews.sg/62222/virtual-banking/less-than-5-of-the-worlds-400-neobanks-are-profitable/
2. Economy downturn--> double edge sword.
-more ppl borrow money, but also higher proportion of ppl defaulted loan.
Strength
1. Experienced management team
2. Strong retail presence
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