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

• Market Cap: HK$3.16B
• Dividend Yield: 6.68%
• Average Volume (3M): 120.80K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.26
• Revenue Growth: 5.78%
• EPS Growth: 24.92%
• Country: HK
• Employees: 596
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.56
• Shares Outstanding: 418,765,600
• 10 Day Avg. Volume: 236,350
• 30 Day Avg. Volume: 120,799
• PEG Ratio: 2.93
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 20.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$8.50 ▲(13.94% Upside)

AEON Credit Service (Asia) Co., Ltd. is well-positioned financially, with strong revenue growth and operational efficiency. The stock's valuation is attractive due to a low P/E ratio and high dividend yield. Technical indicators suggest positive momentum, although caution is advised due to potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product adoption, supporting long-term business sustainability and competitiveness.

Operational Efficiency

Operational efficiency reflects effective cost management and resource utilization, which can enhance profitability and competitive positioning over time.

Leverage Management

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities, supporting long-term stability.

Negative Factors

Cash Flow Resilience

Weak cash flow resilience may limit the company's ability to fund operations and growth initiatives, potentially impacting long-term financial health.

Cash Flow Levels

Low operating cash flow can constrain liquidity, affecting the company's capacity to manage obligations and invest in future growth, posing a risk to sustainability.

EBITDA Margin Absence

Lack of EBITDA margin data limits insight into operational efficiency, potentially obscuring true profitability and hindering strategic decision-making.

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

Company Description

AEON 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 Money

AEON Credit Service generates revenue primarily through interest income on loans and credit facilities it provides to customers. The company offers personal loans, revolving credit lines, and credit cards, earning interest on outstanding balances. Additionally, AEON Credit earns fees from various services, including annual fees for credit cards, late payment fees, and transaction fees from merchants for payment processing. The company may also benefit from partnerships with retailers for co-branded credit offerings, driving more customers to their services. Overall, AEON Credit's business model is centered on consumer lending and financial services, capitalizing on the growing demand for accessible credit in the region.

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

Summary

AEON Credit Service (Asia) Co., Ltd. shows strong revenue growth and operational efficiency, with a stable financial position. Improvements in leverage and a solid equity base are positive, though cash flow resilience needs enhancement.

Income Statement

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.42B	1.23B	1.63B	1.24B	1.07B	1.09B
Gross Profit	1.39B	1.23B	1.54B	1.16B	976.80M	998.82M
EBITDA	760.42M	720.77M	682.64M	534.38M	513.76M	453.68M
Net Income	426.55M	400.48M	392.27M	373.61M	342.59M	301.57M
Balance Sheet
Total Assets	7.92B	7.87B	7.56B	6.46B	5.09B	5.08B
Cash, Cash Equivalents and Short-Term Investments	380.38M	249.84M	295.38M	395.40M	650.35M	894.89M
Total Debt	1.04B	3.27B	3.10B	2.15B	1.14B	1.27B
Total Liabilities	3.57B	3.62B	3.49B	2.57B	1.46B	1.66B
Stockholders Equity	4.35B	4.25B	4.07B	3.89B	3.63B	3.42B
Cash Flow
Free Cash Flow	353.47M	121.06M	-764.61M	-1.07B	43.46M	1.06B
Operating Cash Flow	376.12M	156.98M	-637.40M	-1.02B	74.39M	1.09B
Investing Cash Flow	-21.83M	-39.97M	-121.20M	-9.14M	-51.98M	37.05M
Financing Cash Flow	-286.66M	-143.16M	644.49M	827.42M	-298.93M	-1.03B

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

• Technical Analysis Sentiment: Neutral
• Last Price: 7.46
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0900, the sentiment is Neutral. The current price of 7.46 is below the 20-day moving average (MA) of 7.53, above the 50-day MA of 7.42, and above the 200-day MA of 6.56, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0900.

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0900	78 Outperform	HK$3.16B	6.82	10.90%	6.68%	5.78%	24.92%
2003	69 Neutral	HK$1.41B	2.28	12.71%	9.33%	16.56%	110.71%
0628	68 Neutral	HK$1.14B	22.92	2.03%	―	252.77%	-62.06%
1601	68 Neutral	HK$1.39B	3.83	9.89%	7.43%	1.11%	3.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
3848	49 Neutral	HK$1.81B	222.65	1.28%	0.27%	-7.88%	-28.43%

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

AEON Credit Service Reports Strong Interim Results with Increased Profit

AEON Credit Service (Asia) Co., Ltd. reported its interim results for the six months ending August 31, 2025, showing a significant increase in profit attributable to owners, rising to HK$233.6 million from HK$170.4 million in the previous period. The company’s operating income also increased, driven by higher net interest income and fees, despite a slight decrease in other income. These results reflect a robust financial performance, positioning the company favorably in the market and indicating potential positive implications for stakeholders.

The most recent analyst rating on (HK:0900) stock is a Buy with a HK$8.00 price target. To see the full list of analyst forecasts on AEON Credit Service (Asia) Co., Ltd. stock, see the HK:0900 Stock Forecast page.

AEON Credit Service Announces Interim Dividend for 2025

AEON Credit Service (Asia) Co., Ltd. announced an interim ordinary cash dividend of HKD 0.25 per share for the six months ended 31st August 2025. The ex-dividend date is set for 15 October 2025, with the payment date scheduled for 04 November 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (HK:0900) stock is a Buy with a HK$8.00 price target. To see the full list of analyst forecasts on AEON Credit Service (Asia) Co., Ltd. stock, see the HK:0900 Stock Forecast page.

AEON Credit Service Announces Upcoming Board Meeting for Interim Results

AEON Credit Service (Asia) Co., Ltd. has announced that its board of directors will meet on September 30, 2025, to approve the interim results for the six months ending August 31, 2025, and to consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential dividend payouts, impacting investor sentiment and market positioning.

The most recent analyst rating on (HK:0900) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on AEON Credit Service (Asia) Co., Ltd. stock, see the HK:0900 Stock Forecast page.