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AEON Credit Service (Asia) Co., Ltd. (HK:0900)
:0900
Hong Kong Market
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AEON Credit Service (Asia) Co., Ltd. (0900) AI Stock Analysis

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HK:0900

AEON Credit Service (Asia) Co., Ltd.

(0900)

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Neutral 60 (OpenAI - 5.2)
Rating:60Neutral
Price Target:
HK$9.50
▲(31.22% Upside)
Action:Downgraded
Date:06/26/26
The score is held back primarily by weak cash flow quality and volatility (very low cash conversion and prior negative operating/free cash flow), despite strong current profitability. Valuation is a clear positive (low P/E and high dividend yield), but technical indicators remain weak with bearish momentum and the stock trading below key short-term moving averages.
Positive Factors
Strong profitability
Sustained high net margins (~25% TTM) and healthy operating profitability indicate the core consumer finance card business generates durable earnings. This provides an ongoing cushion for investment, reserves and dividends, and underpins return generation even through moderate revenue cycles.
Negative Factors
Very weak cash conversion
Extremely low OCF-to-net-income (~0.04) and a large TTM FCF decline (-44%) signal earnings are not converting reliably to cash. For a lending business this raises concerns about funding flexibility, dividend sustainability and ability to build reserves during stress or reinvest without external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
Sustained high net margins (~25% TTM) and healthy operating profitability indicate the core consumer finance card business generates durable earnings. This provides an ongoing cushion for investment, reserves and dividends, and underpins return generation even through moderate revenue cycles.
Read all positive factors

AEON Credit Service (Asia) Co., Ltd. (0900) vs. iShares MSCI Hong Kong ETF (EWH)

AEON Credit Service (Asia) Co., Ltd. Business Overview & Revenue Model

Company Description
AEON Credit Service (Asia) Company Limited, alongside its associated companies, operates predominantly within the consumer financial sector across Hong Kong. The organization structures its operations into three main divisions: Credit Cards, Perso...
How the Company Makes Money
AEON Credit Service (Asia) generates revenue mainly through consumer finance and card-related income streams. A primary driver is finance income: interest and related charges earned from credit card revolving balances and other unsecured lending/f...

AEON Credit Service (Asia) Co., Ltd. Financial Statement Overview

Summary
Income statement strength (74) is offset by weak and volatile cash generation (cash flow score 38) and a balance sheet that has become more levered over time (balance sheet score 67; debt-to-equity ~0.77 with an upward drift since 2022). Profitability remains strong with ~25% TTM net margin and improved TTM revenue growth (~+8.7%), but poor cash conversion (OCF to net income ~0.04) materially reduces confidence in earnings quality.
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
38
Negative
BreakdownTTMFeb 2025Feb 2024Feb 2023Feb 2022Feb 2021
Income Statement
Total Revenue2.00B1.84B1.23B1.63B1.24B1.07B
Gross Profit1.69B1.63B1.23B1.54B1.16B976.80M
EBITDA801.09M777.52M720.77M682.64M534.38M513.76M
Net Income494.85M468.20M400.48M392.27M373.61M342.59M
Balance Sheet
Total Assets8.38B8.38B7.87B7.56B6.46B5.09B
Cash, Cash Equivalents and Short-Term Investments224.31M260.42M249.84M295.38M395.40M650.35M
Total Debt3.32B3.47B3.27B3.10B2.15B1.14B
Total Liabilities3.76B3.90B3.62B3.49B2.57B1.46B
Stockholders Equity4.63B4.48B4.25B4.07B3.89B3.63B
Cash Flow
Free Cash Flow36.94M65.67M121.06M-764.61M-1.07B43.46M
Operating Cash Flow54.89M86.50M156.98M-637.40M-1.02B74.39M
Investing Cash Flow-21.67M-20.46M-39.97M-121.20M-9.14M-51.98M
Financing Cash Flow-146.40M-54.57M-143.16M644.49M827.42M-298.93M

AEON Credit Service (Asia) Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.24
Price Trends
50DMA
8.25
Positive
100DMA
7.93
Positive
200DMA
7.51
Positive
Market Momentum
MACD
0.15
Negative
RSI
63.71
Neutral
STOCH
66.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0900, the sentiment is Positive. The current price of 7.24 is below the 20-day moving average (MA) of 8.25, below the 50-day MA of 8.25, and below the 200-day MA of 7.51, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 63.71 is Neutral, neither overbought nor oversold. The STOCH value of 66.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0900.

AEON Credit Service (Asia) Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
60
Neutral
HK$3.68B7.4510.64%6.92%3.01%16.01%
51
Neutral
HK$1.30B14.592.99%77.68%2.38%
47
Neutral
HK$432.63M-0.67-12.87%9.77%9.41%-219.96%
44
Neutral
HK$660.14M-3.45-8.70%0.02%-107.29%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0900
AEON Credit Service (Asia) Co., Ltd.
8.79
2.23
34.01%
HK:0628
Gome Finance Technology Co
0.25
-0.02
-7.41%
HK:2051
51 Credit Card Inc.
0.41
0.03
6.58%
HK:2003
VCREDIT Holdings Limited
0.89
-2.85
-76.20%
HK:3660
Qfin Holdings
50.05
-101.10
-66.89%
HK:6623
Lufax Holding Ltd Class A
10.90
0.00
0.00%

AEON Credit Service (Asia) Co., Ltd. Corporate Events

AEON Credit Asia Strengthens Board with New Non-Executive and Independent Directors
Jun 25, 2026
AEON Credit Service (Asia) Company Limited has announced board changes effective 25 June 2026, appointing AEON Stores (Hong Kong) managing director Takenori Nagashima as a non-executive director, bringing extensive retail management and corporate ...
AEON Credit Service (Asia) Sets Out Board and Committee Line-Up
Jun 25, 2026
AEON Credit Service (Asia) Company Limited has detailed the current composition of its board, naming three executive directors, two non-executive directors and four independent non-executive directors, with Shigeki Mishima serving as chairman and ...
AEON Credit Service (Asia) Wins Full Shareholder Backing at 2026 AGM
Jun 25, 2026
AEON Credit Service (Asia) Company Limited, a Hong Kong-based consumer finance provider specialising in credit cards and personal loans, serves retail customers across Asia and is listed on the local bourse. The company capitalises on its wider AE...
AEON Credit Service (Asia) Boosts Quarterly Profit on Higher Interest Income
Jun 25, 2026
AEON Credit Service (Asia) reported unaudited revenue of HK$476.2 million for the three months ended 31 May 2026, up from HK$442.2 million a year earlier, driven largely by higher interest income. Net interest income rose to HK$380.0 million, whil...
AEON Credit Service (Asia) Sets Board Meeting to Approve Q1 FY2026 Results
Jun 10, 2026
AEON Credit Service (Asia) Company Limited has scheduled a board meeting for 25 June 2026 to consider and approve the announcement of its unaudited consolidated results for the three months ended 31 May 2026. The upcoming review of quarterly perfo...
AEON Credit Restores Public Float After FMR Trims Stake
Jun 4, 2026
AEON Credit Service (Asia) Co., Ltd. has restored its public float above the minimum level required by Hong Kong listing rules after FMR LLC sold 1,398,000 shares, reducing its stake to about 9.99% of the company. As a result, FMR LLC is no longer...
AEON Credit Service (Asia) Moves to Restore Public Float After Major Shareholder Stake Rise
Jun 2, 2026
AEON Credit Service (Asia) Company Limited, a Hong Kong–listed consumer finance provider under the AEON group, offers credit-related products and services across Asia. The company’s ownership is concentrated in its Japanese parent and ...
AEON Credit Renews Connected Lease for Kornhill Retail Premises
Jun 1, 2026
AEON Credit Service (Asia) has renewed a licence agreement with fellow subsidiary AEON Stores to lease a 827-square-foot shop at AEON STYLE Kornhill in Quarry Bay, Hong Kong, from 1 June 2026 to 31 May 2027. The monthly licence fee is set at HK$26...
AEON Credit Sets Estimated Deloitte Audit Fee Ahead of Reappointment Vote
May 28, 2026
AEON Credit Service (Asia) Company Limited has issued supplemental information on its plan to reappoint Deloitte Touche Tohmatsu as auditor for the financial year ending 28 February 2027, following the recommendation of its audit committee. The bo...
AEON Credit Service (Asia) Sets Hybrid 2026 AGM with Dividend and Governance Agenda
May 21, 2026
AEON Credit Service (Asia) Company Limited has called its 2026 Annual General Meeting for 25 June 2026 as a hybrid event, allowing shareholders to attend either in person in Hong Kong or online via the Vistra eVoting Portal. The agenda includes re...
AEON Credit Service (Asia) Announces Planned Retirement of Independent Director in 2026
May 4, 2026
AEON Credit Service (Asia) Company Limited announced that independent non-executive director Lee Ching Ming Adrian will not seek re-election at the company’s annual general meeting on 25 June 2026 and will retire at its conclusion to focus o...
AEON Credit Renews Three-Year Commission Deal With AEON Stores
Apr 15, 2026
AEON Credit Service (Asia) Co., Ltd. has renewed its master agreement with fellow subsidiary AEON Stores for three years from 15 April 2026 to 14 April 2029, covering on-us commission transactions tied to credit card purchases, instalment plans, a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 26, 2026