AEON Credit Service (Asia) Co., Ltd. (HK:0900)
:0900
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AEON Credit Service (Asia) Co., Ltd.
(0900)
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Rating:72Outperform
Price Target:
HK$9.00
▲(24.31% Upside)
Action:ReiteratedDate:04/09/26
The score is driven primarily by solid underlying profitability and improving TTM revenue, tempered by inconsistent cash-flow conversion and rising leverage. Valuation is a major positive (low P/E and high dividend yield), while technicals are supportive but look stretched with overbought momentum indicators.
Positive Factors
Strong profitability / high net margins
Sustained net margins near 30% signal durable earnings power for a consumer finance franchise. High margins support reinvestment, dividend capacity and resilience to cyclical revenue swings, underpinning stable profitability over the next several months.
Negative Factors
Volatile and weak cash generation
Inconsistent cash conversion—including large negative FCF in recent years—raises concerns about earnings quality and the firm’s ability to self-fund growth, pay sustained dividends or rapidly reduce leverage. Cash volatility is a material medium-term risk to flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability / high net margins
Sustained net margins near 30% signal durable earnings power for a consumer finance franchise. High margins support reinvestment, dividend capacity and resilience to cyclical revenue swings, underpinning stable profitability over the next several months.
Read all positive factors
AEON Credit Service (Asia) Co., Ltd. (0900) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.40B
Dividend Yield6.92%
Average Volume (3M)120.80K
Price to Earnings (P/E)7.1
Beta (1Y)0.31
Revenue Growth4.78%
EPS Growth24.02%
CountryHK
Employees596
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding418,765,600
10 Day Avg. Volume236,350
30 Day Avg. Volume120,799
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)0.73
Price to Sales (P/S)1.77
P/FCF Ratio49.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.3
Revenue Forecast (FY)HK$1.97B
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 o...
How the Company Makes Money
The company primarily makes money by earning interest and fee income from consumer finance and payment products, supplemented by insurance-related income. Key revenue streams typically include: (1) Finance charges/interest income on revolving cred...
AEON Credit Service (Asia) Co., Ltd. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
71
Positive
Cash Flow
46
Neutral
| Breakdown | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.84B | 1.23B | 1.63B | 1.24B | 1.07B |
| Gross Profit | 1.63B | 1.23B | 1.54B | 1.16B | 976.80M |
| EBITDA | 777.52M | 720.77M | 682.64M | 534.38M | 513.76M |
| Net Income | 468.20M | 400.48M | 392.27M | 373.61M | 342.59M |
Balance Sheet | |||||
| Total Assets | 8.38B | 7.87B | 7.56B | 6.46B | 5.09B |
| Cash, Cash Equivalents and Short-Term Investments | 260.42M | 249.84M | 295.38M | 395.40M | 650.35M |
| Total Debt | 3.47B | 3.27B | 3.10B | 2.15B | 1.14B |
| Total Liabilities | 3.90B | 3.62B | 3.49B | 2.57B | 1.46B |
| Stockholders Equity | 4.48B | 4.25B | 4.07B | 3.89B | 3.63B |
Cash Flow | |||||
| Free Cash Flow | 65.67M | 121.06M | -764.61M | -1.07B | 43.46M |
| Operating Cash Flow | 86.50M | 156.98M | -637.40M | -1.02B | 74.39M |
| Investing Cash Flow | -20.46M | -39.97M | -121.20M | -9.14M | -51.98M |
| Financing Cash Flow | -54.57M | -143.16M | 644.49M | 827.42M | -298.93M |
AEON Credit Service (Asia) Co., Ltd. Technical Analysis
Positive
7.24
Price Trends
7.64
Positive
7.51
Positive
7.28
Positive
Market Momentum
0.14
Negative
66.58
Neutral
88.63
Negative
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 7.75, below the 50-day MA of 7.64, and below the 200-day MA of 7.28, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 66.58 is Neutral, neither overbought nor oversold. The STOCH value of 88.63 is Negative, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$3.40B | 7.07 | 11.00% | 6.92% | 4.78% | 24.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | HK$1.39B | 4.31 | 8.51% | 7.43% | 1.11% | 3.98% | |
58 Neutral | HK$680.54M | -0.36 | -12.57% | 9.77% | 16.56% | 110.71% | |
52 Neutral | HK$1.59B | 7.90 | 2.99% | ― | 252.77% | -62.06% | |
45 Neutral | HK$1.75B | 290.58 | 0.95% | 0.27% | -7.88% | -28.43% |
* Financial Sector Average
HK:0900
AEON Credit Service (Asia) Co., Ltd.
8.12
2.53
45.26%
HK:0628
Gome Finance Technology Co
0.31
<0.01
1.67%
HK:3903
Hanhua Financial Holding Co., Ltd. Class H
0.17
0.00
0.00%
HK:1601
Zhongguancun Science-Tech Leasing Co. Ltd. Class H
0.86
0.12
16.22%
HK:2003
VCREDIT Holdings Limited
1.40
-2.30
-62.16%
HK:3848
Wealthy Way Group Ltd.
11.22
-0.15
-1.32%
AEON Credit Service (Asia) Co., Ltd. Corporate Events
AEON Credit Service (Asia) Delivers Higher Profit on Stable Costs and Improved Credit Performance
Mar 31, 2026
AEON Credit Service (Asia) reported audited consolidated revenue of HK$1.83 billion for the year ended 28 February 2026, driven mainly by higher interest income and steady fee and commission streams. Net interest income rose, while operating expen...
AEON Credit Service (Asia) Declares Final Dividend for FY2025/26
Mar 31, 2026
AEON Credit Service (Asia) Company Limited has announced a final ordinary cash dividend of HKD 0.33 per share for the financial year ended 28 February 2026, underscoring its capacity to return capital to shareholders. The dividend, pending shareho...
AEON Credit Service (Asia) Sets Board Meeting to Approve Final Results and Consider Dividend
Mar 12, 2026
AEON Credit Service (Asia) Company Limited has scheduled a board meeting for 31 March 2026 to approve the final results for the year ended 28 February 2026. The board will also consider the declaration of a final dividend, a decision that could af...
AEON Credit Renews Connected-Party Lease for Tuen Mun Branch
Feb 26, 2026
AEON Credit Service (Asia) has renewed its trademark licence agreement with fellow subsidiary AEON Stores for the lease of a retail premises in Tuen Mun Town Plaza, Hong Kong. The one-year-and-one-day lease, running from 28 February 2026 to 28 Feb...
AEON Credit Service (Asia) Renews AEON Brand Royalty Deal With Controlling Shareholder
Feb 26, 2026
AEON Credit Service (Asia) Co., Ltd. has renewed its brand royalty agreement with controlling shareholder AEON Financial Service Co., Ltd. of Japan, securing exclusive rights to use the AEON trademarks for its credit services business in its terri...
AEON Credit Service (Asia) Renews Advisory Pact With Controlling Shareholder AFS Japan
Feb 24, 2026
AEON Credit Service (Asia) has renewed its business advisory service agreement with controlling shareholder AFS Japan for one year from 1 March 2026 to 28 February 2027. Under the deal, AFS Japan will continue to provide strategic, marketing, orga...
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.