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

AEON Credit Service (Asia) Co., Ltd. (0900) AI Stock Analysis

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HK

AEON Credit Service (Asia) Co., Ltd.

(0900)

Rating:75Outperform
Price Target:
HK$7.50
▲(8.70%Upside)
AEON Credit Service (Asia) Co., Ltd. has a robust financial foundation with strong revenue growth and operational efficiency. The stock's valuation is attractive due to a low P/E ratio and reasonable dividend yield. While technical indicators show bullish momentum, overbought conditions suggest caution in the short term.

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 DescriptionAEON Credit Service (Asia) Company Limited, together with its subsidiaries, engages in the consumer finance business primarily in Hong Kong. It operates through three segments: Credit Cards, Personal Loans, and Insurance. The Credit Card segment offers credit card services to individuals; and acquiring services for member stores. The Personal Loans segment provides personal loan financing services to individuals. The Insurance segment offers insurance agency and brokerage services. It also provides card payment processing and microfinance services. The company was founded in 1987 and is headquartered in Tsim Sha Tsui, Hong Kong. AEON Credit Service (Asia) Company Limited is a subsidiary of AEON Financial Service (Hong Kong) Co., Limited.
How the Company Makes MoneyAEON Credit Service (Asia) Co., Ltd. generates revenue through its wide array of financial services. The company earns interest income from personal loans and credit card transactions, which represent a significant portion of its revenue. Additionally, it earns fees from credit card operations, such as annual fees, transaction fees, and late payment fees. The hire purchase financing segment contributes to its revenue by charging interest on installment payments. The company's strategic partnerships with retail businesses and financial institutions enhance its service offerings, broadening its customer reach and boosting its revenue potential. Furthermore, AEON Credit Service focuses on innovative digital solutions to attract more customers and streamline its operations, contributing to its financial growth.

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

Summary
AEON Credit Service (Asia) Co., Ltd. demonstrates solid financial performance with strong revenue growth and operational efficiency. A robust balance sheet with improved leverage and a strong equity base supports their financial stability. However, while cash flow has improved, consistent positive cash generation remains a focus for enhancing financial resilience.
Income Statement
82
Very Positive
The company has demonstrated consistent revenue growth with a notable increase from the prior year. The gross profit margin remains strong, indicating effective cost management. However, the absence of EBITDA margins in the latest report limits the comprehensive understanding of operational efficiency. Net profit margin shows slight improvement, reflecting a stable bottom line.
Balance Sheet
78
Positive
The balance sheet is solid with a healthy equity ratio indicating strong financial stability. The debt-to-equity ratio has improved, suggesting better leverage management. Return on equity is robust, showcasing effective use of shareholders' funds. The company's growing equity base is a positive sign of financial health.
Cash Flow
70
Positive
Operating cash flow has shown recovery from previous negative figures, although it remains relatively low. Free cash flow is positive, demonstrating improved liquidity position. The free cash flow to net income ratio suggests a reasonable conversion of net income into cash, but further improvement would enhance cash flow resilience.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
1.23B1.18B1.24B1.02B1.07B
Gross Profit
1.23B1.54B1.16B925.15M969.88M
EBIT
881.20M829.44M493.42M429.80M357.95M
EBITDA
720.77M682.64M534.38M513.76M453.68M
Net Income Common Stockholders
400.48M392.27M373.61M342.59M301.57M
Balance SheetCash, Cash Equivalents and Short-Term Investments
244.09M273.31M395.40M650.35M894.89M
Total Assets
7.87B7.56B6.46B5.09B5.08B
Total Debt
1.27B3.10B2.15B1.14B1.27B
Net Debt
1.02B2.83B1.75B491.38M372.69M
Total Liabilities
3.62B3.49B2.57B1.46B1.66B
Stockholders Equity
4.25B4.07B3.89B3.63B3.42B
Cash FlowFree Cash Flow
121.06M-764.61M-1.07B43.46M1.06B
Operating Cash Flow
156.98M-637.40M-1.02B74.39M1.09B
Investing Cash Flow
-39.97M-121.20M-9.14M-51.98M37.05M
Financing Cash Flow
-143.16M644.49M827.42M-298.93M-1.03B

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

Technical Analysis Sentiment
Positive
Last Price6.90
Price Trends
50DMA
6.35
Positive
100DMA
6.14
Positive
200DMA
5.94
Positive
Market Momentum
MACD
0.15
Negative
RSI
68.90
Neutral
STOCH
73.02
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 6.9 is above the 20-day moving average (MA) of 6.59, above the 50-day MA of 6.35, and above the 200-day MA of 5.94, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 68.90 is Neutral, neither overbought nor oversold. The STOCH value of 73.02 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$2.89B7.229.63%3.48%10.41%2.09%
65
Neutral
$12.76B9.917.89%78.91%12.06%-7.95%
$126.40B6.15
7.53%
$212.35B5.629.57%11.55%
$47.68B9.4011.58%3.35%
$345.15B5.549.72%5.12%
$9.14B42.0011.20%0.27%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0900
AEON Credit Service (Asia) Co., Ltd.
6.90
1.32
23.66%
PIAIF
Ping An Insurance Company of China
5.97
1.57
35.68%
BACHF
Bank of China
0.58
0.15
34.88%
BNKHF
BOC Hong Kong (Holdings)
4.36
1.53
54.06%
IDCBF
Industrial and Commercial Bank of China
0.78
0.25
47.17%
ZHAOF
Zhaojin Mining Industry Co
2.52
0.78
44.83%

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

AEON Credit Service Announces Upcoming Board Meeting for Financial Results
Jun 11, 2025

AEON Credit Service (Asia) Co., Ltd. has announced that its board of directors will meet on June 26, 2025, to approve the unaudited consolidated results for the three months ending May 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.

AEON Credit Service Renews KH Licence Agreement with AEON Stores
May 29, 2025

AEON Credit Service (Asia) Co., Ltd. has renewed its KH Licence Agreement with AEON Stores for the lease of premises at Kornhill Plaza, Hong Kong, for another year starting June 2025. This renewal is classified as a connected transaction under HKFRS 16, requiring the company to recognize it as a right-of-use asset valued at approximately HK$3,080,000. The transaction is subject to reporting and announcement requirements but is exempt from independent shareholders’ approval, indicating a streamlined compliance process for the company.

AEON Credit Service Announces 2025 AGM Details
May 21, 2025

AEON Credit Service (Asia) Co., Ltd. has announced the details of its 2025 Annual General Meeting, scheduled for June 26, 2025. The meeting will address key resolutions including the approval of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The AGM will be held in a hybrid format, allowing both physical and virtual attendance, which reflects the company’s commitment to accessibility and shareholder engagement.

AEON Credit Service Announces Chairman’s Retirement
May 2, 2025

AEON Credit Service (Asia) Co., Ltd. announced the retirement of Mr. Kenji Fujita, its Non-executive Director and Chairman, effective at the conclusion of the annual general meeting on June 26, 2025. Mr. Fujita’s departure is due to his desire to focus on other business commitments, and he leaves without any disagreements with the Board. His retirement will result in changes to the company’s Nomination, Audit, and Remuneration Committees, potentially impacting the company’s governance structure.

AEON Credit Service Enhances Audit Committee Oversight
Apr 3, 2025

AEON Credit Service (Asia) Co., Ltd. has outlined the terms of reference for its Audit Committee, emphasizing the importance of independent oversight in its financial operations. The committee, composed primarily of Independent Non-executive Directors, is tasked with ensuring the integrity of the company’s financial reporting and auditing processes. This move underscores AEON Credit’s commitment to robust corporate governance and transparency, potentially strengthening stakeholder confidence and enhancing its market position.

AEON Credit Service Announces Final Dividend for FY 2025
Apr 3, 2025

AEON Credit Service (Asia) Co., Ltd. has announced a final cash dividend of HKD 0.25 per share for the financial year ending 28 February 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders, with the dividend payment scheduled for 31 July 2025.

AEON Credit Service Reports Stable Financial Performance for FY 2025
Apr 3, 2025

AEON Credit Service (Asia) Co., Ltd. reported its audited consolidated financial results for the year ended 28th February 2025, showing a revenue increase to HK$1,759 million from HK$1,623 million the previous year. The company achieved a profit of HK$400 million, up from HK$392 million, despite facing higher impairment losses. The total comprehensive income for the year was HK$384 million, reflecting a slight improvement over the previous year, indicating stable financial performance and resilience in its operations.

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.