Stock Picks #2
AEON Credit Berhad (AEONCR)
Two-Week high : RM 11.50 (Up 85 sen – 8.8%)
“To
receap 2 weeks ago, On 23 April, AEON Credit reported that its net
profit jumped 43% year-on-year and 10% quarter-on-quarter to RM27.7mil
for 4th quarter ended Feb 20, 2012, mainly from credit card and personal
financing. Hwang DBS Vickers Research revised AEON Credit's target
price to RM 9.20 on the same day pegging to 8 times PE ratio.
Market
took this news as positive on improving market sentiments for the
financing business. Furthermore, on 24 April, market talk rumoured that
AEON Credit may be mulling for a 1-for-1 bonus issue.
OSK
Research indicated that a bonus issue would be a positive move to
retail investors as liquidity is one of the concerns of AEON Credit.
AEON Credit rose 61 sen (6.3%) since 24 April to the week’s highest RM
10.26 on 26 April and closed at RM 10.06 at the end of the week.”
AEON Credit stock continue to rally through Week 19 (7-11 May) gaining a total 8.8% or 85 sen since April 24 when market talk rumoured that AEON is mulling for a bonus issue to improve its stock liquidity.OSK Research also indicated that a bonus issue would be a positive move to retail investors as liquidity is one of the concerns of AEON Credit
This definitely gave the market an energy boost just after AEON Credit reported a 43% jump in its year-on-year quarterly net profit announced on 23 April.
Market
continue to favour AEON Credit’s improving sentiments in its credit
card and personal financing business which saw AEON Credit stock gained a
total 8.8% or 85 sen since April 24 to reach its two-week high of RM
11.50 on 11 May and closed at RM 11.20 for the week.
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