AEON Credit Service

Aeon Credit Service (ACSM MK, BUY, TP: MYR16.00)
Expectations Of Sustained Growth
Results Preview
We expect Aeon Credit’s 3QFY17 results to be in line with our expectations with no major surprises. Loan receivables growth is expected to be on track to meet our estimate of 19% YoY growth for FY17F, while we forecast NIMs to remain compressed. Asset quality remains the key highlight to the results as we expect improved credit cost ahead from lower impairment allowances. We maintain our earnings forecast and TP of MYR16.00 (17% upside). Following a recent share price correction, we upgrade the stock to BUY (from Neutral).

(Share) Stock Pick

Dear trader,
Potential stock to buy today:
27/7/2016

1) ASTINO
Price : 0.78
Target price: 0.865
Cut loss: 0.71
Sector: Industrial product
***shariah

2) AEONCR
Price entry   : 14.02
Target price: 15.00/16.10
Cut loss: 12.86
Sector: Finance
***Non shariah

3) SALCON
Price entry: 0.645
Target price: 0.705
Cut loss: 0.575
Sector: Trading/Services
* Shariah

4) SAUDEE
Price entry: 0.31
Target price: 0.35,0.375
Cut loss: 0.275
Sector: Consumer product
***Shariah

Source : RHB RESEARCH INSTITUTE

Disclaimers: This trading ideas are issued and distributed in Malaysia by RHBIB only . The views and opinions in this ideas are our own as of the date here of and is subject to change.