AEONCR (5139) : RHB Research maintains Neutral on Aeon Credit, cuts target price to RM12
KUALA LUMPUR (Dec 17): RHB Research has maintained its Neutral rating on Aeon Credit Services (M) Bhd (ACSM) at RM10.66 with a lower target price of RM12 (from RM18) and said this was based on a new target P/E of 7.5x (from 10.5x) to reflect rising asset quality risks.
In a note Wednesday, the research house said while ACSM’s 3QFY15 (Feb) results were broadly in line, the NPL ratio rose further to 3.1% from 2.7% at end-2QFY15.
“Due to the continued rise in NPLs, we raise our FY15-16 impairment allowance for receivables by 5-10%.
“We also lower our FY16 revenue projection by 3% to be consistent with the softer macro environment that we now expect for 2015.
“Overall, we trim our FY15/FY16 net profit projections by 3%/7% respectively.
RHB Research said together with a softer macro outlook ahead, investors may continue to stay on the sidelines.
At 11.04am, ACSM rose 2.44% or 26 sen to RM10.92 with 116,800 shares done.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 17): RHB Research has maintained its Neutral rating on Aeon Credit Services (M) Bhd (ACSM) at RM10.66 with a lower target price of RM12 (from RM18) and said this was based on a new target P/E of 7.5x (from 10.5x) to reflect rising asset quality risks.
In a note Wednesday, the research house said while ACSM’s 3QFY15 (Feb) results were broadly in line, the NPL ratio rose further to 3.1% from 2.7% at end-2QFY15.
“Due to the continued rise in NPLs, we raise our FY15-16 impairment allowance for receivables by 5-10%.
“We also lower our FY16 revenue projection by 3% to be consistent with the softer macro environment that we now expect for 2015.
“Overall, we trim our FY15/FY16 net profit projections by 3%/7% respectively.
RHB Research said together with a softer macro outlook ahead, investors may continue to stay on the sidelines.
At 11.04am, ACSM rose 2.44% or 26 sen to RM10.92 with 116,800 shares done.
http://www.theedgemarkets.com
