KLCI extends gains as global markets rise
Petrofac gets RM220m Carigali refurbishment job
Bursa Malaysia Derivatives launches revamped options on index futures
Willowglen MSC unit gets RM19.99m of jobs
Axiata edges up on positive 1Q earnings
UAC surges on Boustead privatisation plan
April inflation seen at 2.1% y-o-y, matches March level
Suaram slams prosecution of opposition leaders involved in Bersih rally
Categories
| Kenanga Research maintains buy call on Aeon Credit Services |
| Business & Market 2009 | |||
| Written by Surin Murugiah | |||
| Thursday, 18 June 2009 08:36 | |||
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It said ACSM's earnings were seasonally stronger in the second half of the year, adding that the motorcycle easy payment (MEP) segment continued to be the star performer, registering approximately 30% sales growth. "However all segments — general easy payment (GEP), credit card (CC) and personal financing (PFS) — turned in double-digit sales growth," it said. "Year-on-year (y-o-y), 1QFY10 net profit rose by 20% on the back of a 22% increase in revenue. Total net receivables increased by 22% y-o-y to RM877.9 million, led by strong double-digit growth in the MEP and GEP divisions. "Pretax profit rose by 20% due to improved operational efficiency and lower NPL ratio of 1.85%," it said. Kenanga Research said that quarter-on-quarter, ACSM's 1QFY10 net profit declined by 10% in spite of revenue having increased 1%. Earnings before interest and tax (EBIT) declined 9% due to higher operating expenses associated with new branches, it said. "ACSM opened seven new marketing offices in smaller towns in Peninsular Malaysia in March 2009 to widen distribution network. Pretax profit declined by 11% in line with lower EBIT," it said. "FY10 and FY11 earnings estimates unchanged. We anticipate net profit growth of 26% in FY10 based on net receivables growth of 24%." The research house said ACSM's growth in FY10 will come from the easy payment and credit card segments. The firm will focus on launching AEON-Biz (that offers financing of under RM50,000 to SMEs for office automation, and equipment) nationwide and introducing a joint J-Card and credit card by end-FY10, it said.
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