- Aeoncr achieved a record high revenue of RM 378 million for the current quarter which accounts for approximately 28% of 2018's revenue.
- Although the revenue recorded as a best quarterly revenue in Aeoncr history, its net profit margin shrink to 22.3% as compared to its benchmark of 24% due to higher finance cost and higher impairment loss on receivables (Finance cost accounts for 90% of its net profit; impairment loss on receivables are RM 93 million which accounts for 30% of 2019 impairment on receivables) Without this additional RM 36 million of impairment loss and RM 27 million of finance cost, Aeoncr would actually achieve a RM 147 million of net profit which is a record high as well.
- Its financing receivables grows by 5.52% however its borrowings grows by 8.02%. Its revenue also grows by 5.21% as compared to its proceeding quarter. (nothing much significant here, everything is in line)
- Nothing much being mentioned in its prospects, however the company mentioned that it is able to maintain its performance for 2020.
Comments
Overall, Aeoncr delivery a very good quarterly result with record high quarterly revenue. Although it recorded a lower net profit as compared to previous quarter, however, if we exclude its additional impairment loss on receivables of RM 37 million, Aeoncr actually achieved a net profit of RM 120 million, that translates into EPS of 47 sen. Therefore, it is important for us to look at its next quarter result to see if there is additional impairment on receivables. If there is no more, there shouldnt be any issue for Aeoncr to deliver a better performance for year 2020.
It is also worth taking note that NPL for Aeoncr right now is 1.92% which is even lower than NPL for 2019 of 2.04%
Valuation wise, Aeoncr is currently trading at PE of 12.3 at the price of RM 16.70 which is deemed to be a record high PE. At PE of 11, Aeoncr is worth RM 14.31. However, as mentioned above if we exclude the additional impairment loss of RM 37 million, at PE of 11, Aeoncr is worth RM 15.96.
