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

• Market Cap: HK$3.04B
• Dividend Yield: 6.92%
• Average Volume (3M): 120.80K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.27
• Revenue Growth: 4.78%
• EPS Growth: 24.02%
• Country: HK
• Employees: 596
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.28
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$8.00 ▲(10.50% Upside)

The score is driven primarily by strong financial profitability and an attractive valuation (low P/E and high dividend yield). These positives are tempered by cash-flow volatility and rising leverage trends, while technical indicators point to weaker near-term momentum.

Positive Factors

Profitability

High net margins indicate efficient operations and strong pricing power, which can sustain profitability even in competitive markets.

Revenue Growth

Improved revenue growth suggests successful market strategies and product offerings, enhancing long-term business expansion potential.

Balance Sheet Health

A sound balance sheet with moderate leverage provides financial stability and flexibility to navigate economic fluctuations.

Negative Factors

Cash Flow Volatility

Volatile cash flows can hinder strategic investments and indicate potential operational inefficiencies, impacting long-term growth.

Rising Leverage

Increased leverage reduces financial flexibility and could pose risks if credit conditions tighten or interest rates rise.

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to fund growth initiatives and return capital to shareholders.

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	1.57B	1.23B	1.63B	1.24B	1.07B	1.09B
Gross Profit	1.52B	1.23B	1.54B	1.16B	976.80M	998.82M
EBITDA	801.58M	720.77M	682.64M	534.38M	513.76M	453.68M
Net Income	477.87M	400.48M	392.27M	373.61M	342.59M	301.57M
Balance Sheet
Total Assets	8.28B	7.87B	7.56B	6.46B	5.09B	5.08B
Cash, Cash Equivalents and Short-Term Investments	250.42M	249.84M	295.38M	395.40M	650.35M	894.89M
Total Debt	3.37B	3.27B	3.10B	2.15B	1.14B	1.27B
Total Liabilities	3.88B	3.62B	3.49B	2.57B	1.46B	1.66B
Stockholders Equity	4.39B	4.25B	4.07B	3.89B	3.63B	3.42B
Cash Flow
Free Cash Flow	272.83M	121.06M	-764.61M	-1.07B	43.46M	1.06B
Operating Cash Flow	288.02M	156.98M	-637.40M	-1.02B	74.39M	1.09B
Investing Cash Flow	-16.34M	-39.97M	-121.20M	-9.14M	-51.98M	37.05M
Financing Cash Flow	-251.96M	-143.16M	644.49M	827.42M	-298.93M	-1.03B

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

• Technical Analysis Sentiment: Negative
• Last Price: 7.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 7.24 is below the 20-day moving average (MA) of 7.27, below the 50-day MA of 7.42, and above the 200-day MA of 6.76, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.45 is Neutral, neither overbought nor oversold. The STOCH value of 31.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	HK$3.04B	6.35	10.90%	6.92%	4.78%	24.02%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
1601	64 Neutral	HK$1.39B	3.83	9.89%	7.43%	1.11%	3.98%
2003	58 Neutral	HK$1.26B	2.04	12.71%	9.77%	16.56%	110.71%
0628	52 Neutral	HK$1.12B	22.40	2.03%	―	252.77%	-62.06%
3848	49 Neutral	HK$1.75B	215.16	1.28%	0.27%	-7.88%	-28.43%

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

AEON Credit Service (Asia) Lifts Caps on Gift Certificate Transactions Amid Surging Loyalty Demand

AEON Credit Service (Asia) has raised the annual caps on its continuing connected transactions with fellow subsidiary AEON Stores under a gift certificate master agreement, reflecting stronger-than-expected demand from cardholders redeeming AEON Stores Gift Certificates through the AEON Bonus Point Program. The revised caps for the three financial years to February 2028 have been lifted significantly, with the 2025/26 cap increased from HK$23 million to HK$26.6 million, 2026/27 from HK$28.5 million to HK$35.8 million, and 2027/28 from HK$31.1 million to HK$43.7 million, driven by growth in active cardholders, higher transaction volumes, greater bonus point redemption, and an anticipated revamp of the loyalty scheme to add new earning sources beyond the company itself. While the terms of the existing 2025 renewal agreement remain unchanged, the transaction remains a connected transaction under Hong Kong listing rules; the revised caps trigger reporting, announcement and annual review requirements but are exempt from independent shareholders’ approval, underscoring the company’s strategy of using AEON Stores Gift Certificates as a key reward option to sustain customer loyalty and support business growth.

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.

AEON Credit Service (Asia) Posts Higher Nine-Month Profit on Revenue Growth and Lower Impairments

AEON Credit Service (Asia) reported unaudited consolidated revenue of HK$1.36 billion for the nine months ended 30 November 2025, up from HK$1.30 billion a year earlier, driven by higher interest income, fees and commissions, and handling and late charges. Net interest income rose to HK$1.05 billion, operating profit before impairment climbed to HK$712.9 million, and profit for the period increased to HK$352.7 million versus HK$275.3 million, with basic earnings per share advancing to 84.22 Hong Kong cents. Operating expenses were broadly stable while impairment losses and allowances fell, supporting a stronger bottom line, and total comprehensive income improved to HK$351.3 million, underscoring an enhanced earnings profile and financial performance for shareholders over the reporting period.

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.

AEON Credit Service to Announce Nine-Month Financial Results

AEON Credit Service (Asia) Co., Ltd. announced that its board of directors will meet on December 23, 2025, to approve the unaudited consolidated results for the nine months ending November 30, 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.

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.

AEON Credit Service Announces Board and Committee Composition

AEON Credit Service (Asia) Co., Ltd. has announced the composition of its board of directors and the membership of its four board committees. This announcement provides clarity on the company’s governance structure, which is crucial for stakeholders to understand the roles and responsibilities within the company, potentially impacting its strategic decisions and operational effectiveness.

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.

AEON Credit Announces Director Resignation

AEON Credit Service (Asia) Co., Ltd. announced the resignation of Ms. Jin Huashu as a Non-executive Director, effective December 1, 2025, as she transitions to a new management role within the AEON group. Her departure is amicable, with no disagreements with the board, and her contributions during her tenure were acknowledged.

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.