Click to see the AEON Credit Malaysia Balance Sheet QoQ

（吉隆坡19日讯）永旺信贷（AeonCr，5139，主板金融股）看好信用卡业务能维持双位数增长水平，并放眼两年内吸引30万持有佳世客（Jusco）JCard的会员转持公司信用卡。
永旺信贷董事经理笠井康弘今日在股东大会后记者汇报会上表示，目前公司在大马的信用卡市场份额为2%，因此积极在母公司永旺（Aeon，6599，主板贸服股）的JCard会员中探寻提高市占率的机会。
“目前JCard会员有90万人，我们希望能两年内能有三分之一的会员将JCard转至永旺信用卡。”

KUALA LUMPUR: While there is growing concern that Bank Negara Malaysia’s prudent lending policy would affect banks’ loan growth, AEON Credit Service (M) Bhd seems unfazed.

Its share price climbed to a historic high of RM9.18 last Friday after the company announced its record net profit of RM95.6 million for FY12 ended Feb 29 compared with RM63.43 million a year ago. The stock has soared 87% over the past five months from a low of RM4.90 in early November.

Analysts, who track the stock, still see the growth potential of AEON Credit despite the sharp gain in the share price.

Kenanga Research has raised its loan growth forecast to 30% from barely 10% previously. The research firm said the 30% loan growth target for FY13 is “achievable” with the favourable outlook on its credit card, personal finance and motorcycle financing divisions.

Kenanga Research is anticipating earnings growth of 39% for FY13, which translates into a net profit of RM133.3 million or RM1.11 per share (versus 79.7 sen for FY12).

OSK Research has tweaked its earnings growth forecast after AEON Credit delivered the good set of financial results.

“We are taking the opportunity to bump up our FY13 revenue and earnings forecasts by 14.5% and 24.5% respectively, largely due to robust growth in its durable consumer financing and personal loan business,” it said in a note.

OSK Research anticipates a net profit of RM119.8 million or 99.8 sen per share for FY13 and RM153.7 million or RM1.28 per share for FY14.

HwangDBS Vickers Research revised its loan and funding growth to 23% for FY13 from 19% previously. “Growth for personal financing and credit card loans should remain robust, while Easy Payment (general and vehicle) will grow at a moderate pace due to a larger base,” said HwangDBS.

According to analysts, the management has indicated that AEON Credit plans to capitalise on the segments that the bigger banks do not traditionally compete in. HwangDBS believes that micro-loans to small and medium enterprises and the financing of super bikes and used cars would provide the new impetus for loan growth.

OSK Research said the two segments will be the new growth area. “We think that AEON Credit can focus on growing market share in these two segments while maintaining its asset quality given its solid risk containment measures, which have helped keep its non-performing loans [NPL] low,” said OSK Research.

It added that AEON Credit’s asset quality is still intact. However, its capital adequacy ratio (CAR) fell to 21.8% from 24% in the previous year, but it is still well above the 16% requirement and thus able to maintain its asset quality.

The group’s NPL was down 14 basis points to 1.8% compared with 1.94% previously, slightly below the 1.9% average industry, it said.

AEON Credit uses the Central Credit Reference Information System (CCRIS) and an internal credit-scoring model, designed to model consumer behaviour and spending patterns to ensure it engages those with favourable payment histories. This helps the company to screen the good prospective customers from bad ones.

Its collaboration with AEON Co is bearing fruit. AEON Credit could leverage AEON Co’s 900,000 strong, loyalty member programme.

AEON Credit is making use of this opportunity to persuade customers to sign up for its credit cards at renewal counters.

Analysts said another advantage is that AEON Co does not allow other credit card operators to set up booths at its shopping centres, giving AEON Credit a leg up compared to other financial institutions.

Apart from churning out strong earnings growth, AEON Credit pays steady dividend annually, which has climbed steadily in line with its earnings. The company has declared a 16.8 sen single tier final dividend, bringing the total dividend to 30 sen for FY12 — the highest payment so far.

OSK Research pegs its dividend per share (DPS) forecast at 36.4 sen and 46.4 sen for FY13 and FY14 respectively. Hwang-DBS expects net DPS of 34.5 sen for FY13 and 41.4 sen for FY14.


This article appeared in The Edge Financial Daily, April 23, 2012.

KUALA LUMPUR: AEON Credit Service (M) Bhd posted a 43% increase in net profit for its 4QFY12 ended February to RM27.72 million from RM19.4 million a year ago.

Revenue in 4Q increased by 27.9% to RM94.28 million, from RM73.73 million a year ago. For FY12, it posted a 50.7% rise in net profit to RM95.61 million from RM63.43 million a year ago on the back of increased revenue of 27.7% to RM344.27 million from RM269.61 million previously.

In notes accompanying its financials yesterday, AEON Credit said it realised growth in its business and receivables due to an increase in financing transaction volume, which was attributable to the continued favourable economic environment, and marketing and promotion activities.

Its total transaction and financing volume in 4Q and FY12 were RM440 million and RM1.66 billion respectively, representing a growth of 26.2% and 40.9% respectively from a year ago.

Meanwhile, its financing receivables at as end-FY12 stood at RM1.49 billion, representing a growth of 34.5% from RM1.11 billion in FY11. AEON Credit said that its non-performing loans (NPL) ratio was 1.8% as at Feb 2012 compared to 1.83% in February 2011, reflecting satisfactory asset quality despite a sharp growth in its business and receivables in the year.

It said other operating income of RM24.9 million for FY12 was 44.4% higher than the previous year, due to continued growth in fee income, especially for sales in insurance products and increase in bad debts recovered.

AEON Credit yesterday proposed a single-tier final dividend of 16.8 sen for FY12. Including this, total dividends for FY12 amounted to 30 sen. In FY11, it paid dividends amounting to 26.5 sen.

On its prospects, AEON Credit said it expects to be able to sustain its performance in FY13 based on its business strategies, and marketing and branding efforts.

AEON Credit shares closed three sen higher to RM8.74 yesterday, representing a year-to-date return of 26.7%, according to Bloomberg.

Its shares have been on an uptrend since RM4.50 levels in September 2011. Over the past 52-weeks it has traded between a high of RM9 in March 2012 and low of RM4.04 in April 2011.

This article appeared in The Edge Financial Daily, April 20, 2012.

AEON Credit Service (M) Berhad (AEON Credit or the Company) was incorporated on 6 December 1996 and was converted into a public limited company on 9 February 2007 and listed on the Main Market of Bursa Malaysia Securities Berhad on 12 December 2007. AEON Credit commenced operations in 1997 by providing Easy Payment schemes for purchase of consumer durables through appointed retail merchants and chain stores.

Today the business of the Company has expanded to include issuance of Credit Cards, Easy Payment schemes, Personal Finance schemes and other services. The Company currently has 3 Regional Offices, 31 branches and Service Centres located in major shopping centres and towns and a network of more than 4,300 participating merchant outlets nationwide. AEON Credit believes in working closely with its business partners to provide consumer financing products and services which meet customer needs. The Company currently has more than 720,000 cardmembers for the various products and more than 1,500 staff in service with the Company.

AEON Credit is a subsidiary of ÆON Credit Service Co. Ltd, Japan (ÆON Credit Japan), which is listed on the First Section of the Tokyo Stock Exchange. ÆON Credit Japan is mainly involved in the issuance of credit cards, and it currently has more than 18.08 million card members in Japan. It is one of the biggest credit card issuers and a leading consumer credit provider in Japan.

ÆON Credit Japan is in turn part of the ÆON group of companies (ÆON Group), a global retail and financial services group. ÆON Group consists of more than 150 subsidiaries and affiliated companies. ÆON Group operates not only in Japan but also in Southeast Asia, China and North America. The fundamental principle of ÆON is its “customercentered approach.” ÆON’s mission is to contribute to customers.

ÆON’s most basic and abiding principles are the pursuit of peace, respect for humanity, and contribution to local communities through customercentered initiatives. Under these principles, we are determined to achieve global management standards.

All companies under the ÆON Group are guided by the unchanging ‘Customer First’ philosophy. Its aim is to surpass expectations by combining excellent products with unique personal services.



AEON Credit should able to sustain current pace of  growth in next few years.Both revenue and profit increase ~28% in FY12. The estimated EPS for FY12 80sen and final dividend  will be ~17.55sen.


The 4th quarter result will be coming out in 20th April.


20 May - Updated FY12 result

Aeon extends its community reach in region

KUALA LUMPUR: Established as part of Tun Dr Mahathir Mohamed’s Look East policy in 1984 to help boost the nascent local retail market, Aeon Co (M) Bhd, formerly known as Jaya Jusco Stores Bhd, has grown from its initial store in Dayabumi to 29 stores nationwide and with its annual sales now reaching RM3 billion with close to RM200 million in net profit.

Not only did Aeon modernise the local retail industry, it did so by entrenching itself as a community-centric player catering to the prospering middle-income market in the cities and towns in Malaysia where it has a presence.

In a recent interview, Aeon group managing director Nur Qamarina Chew Abdullah and executive director of corporate finance and investor relations, Poh Ying Loo, told The Edge Financial Daily of the strategy to further expand its reach in Malaysia and how its aggressive rebranding exercise will help strengthen its name in a regional context.

The group, which is in the midst of entering the northern region in a big way, will launch two new malls in Perak — Sri Manjung and Ipoh — and has acquired land in Kedah and Penang worth RM86 million, with plans to develop these sites into malls by 2014. It also recently purchased land in Johor for RM22.22 million.

Aeon plans to spend some RM15 million in the next two years on the re-branding exercise to move away from the long-time Jusco brand that Malaysian consumers are accustomed to. The rebranding is not only aimed at promoting the group’s new image to be aligned with its corporate identity but as a means to enter regional markets where the Aeon brand, instead of Jusco, is being used.

At present, its parent Aeon Group Japan owns and operates shopping malls in Hong Kong, China and Thailand. The group is currently exploring opportunities to enter other emerging markets like Cambodia, Indonesia and Vietnam.

“The potential of Asean is huge. I believe we (Aeon Group Japan) are making the right move to go global. Japan has matured and since last year the group has been exploring new markets like Asean and China. The Asean office is based here in KL as Malaysia has a very stable business and economic environment,” said Chew.

On whether Aeon, which is 51% owned by Aeon Group Japan, will take part in those regional moves, Chew said that all regional expansion decisions will be determined by the parent company.

Since 2002, Aeon has been expanding aggressively in Malaysia, launching at least one store or shopping mall a year except for 2009, at the peak of the US subprime mortgage crisis.

But despite having a presence in Malaysia for the past 28 years, it is worth noting that Aeon has yet to enter the East Coast and Sabah and Sarawak, which leaves room for growth.

“We have not finished our focus study yet on the East Coast. When we do, we want to bring — as always — a certain lifestyle change to the new area even if it may not be as sophisticated as the shopping scene in Kuala Lumpur,” said Poh.

“I believe we can contribute to the modernisation of the retail landscape on the East Coast and Sabah and Sarawak. For example, when we first opened our Ayer Keroh mall 15 years ago, it was something like Manjung (Perak) and along the way it has developed. We aim to modernise the lifestyle scene in that area,” said Chew who has been with the group for nearly three decades, having started on the retail floor.

She said Aeon positions itself as a community-centric retailer. Population size plays a role in determining where to set up a mall but essentially, the group is focused on creating an impact when entering new areas and wants to ensure that it captures the middle income group.

For instance, its foray into areas like Klang, with its Aeon Bukit Tinggi, the largest Aeon mall in Southeast Asia, has changed the local retail community in a substantial way, Chew said.

“If we enter a new area, I believe we need to have a dominant market positioning first before looking into something more community-based like MaxValu,” she added, referring to the convenience store brand that Aeon is experimenting with.

MaxValu, Aeon’s convenience store equipped with a mini-wet market, was launched in 2008 in Kota Kemuning, Ampang, Damansara Damai and Desa ParkCity. However, since its initial launches, the group has ceased further expansion of the MaxValu stores.

Poh said the MaxValu stores were a prototype set up in various environments as a neighbourhood store, in a shop lot and part of a petrol station to gauge consumer perception.

“I think we have to get the format and model right before we can make it [MaxValu] more commercialised. The feedback from customers has been positive as openings hours stretch till 11pm. Potentially the best place to open up these stores would be in the housing areas,” Chew said.

In line with its re-branding exercise, Aeon is re-branding its Jusco Selection house brand to TopValu by the end of the year. Additionally, it has 12 in-house clothing brands which are well received.

Chew said consumers are now after value for money and quality products, not necessarily buying big brand names if standards are not met.

Chew was appointed Aeon managing director last year. She is the first woman to that position in the company. Considered a pioneer staff, she has extensive experience in Aeon’s retail operations, having joined in 1984 as a management trainee and started off as a floor executive, and steadily rising through the ranks as a merchandising manager in 1990 till 1993.

After transferring to Jusco Bandar Utama in 1998 as store manager, she was again transferred to another major outlet, Jusco Mid Valley as store manager as well. In 2001, she was promoted to senior manager  and general manager in 2002, in charge of store operations.

In 2006, Chew was made general manager in charge of the group’s new business development division and in 2008 was promoted to senior general manager to head the neighbourhood shopping centre business division.

She became senior general manager of merchandising in 2009 and store operations in 2010, culminating in her promotion as group managing director in May 2011.

AEON CO (M) undertaking RM10 million rebranding exercise to change name of its department stores from Jusco to Aeon in Malaysia as part of global branding marketing by AEON group.

AEON Japan Limited is the owner of the largest retail chain stores in Japan. In 1984, they have been invited by the Malaysia’s government to modernize the retail industry in Malaysia. Since then, they have been operating the JUSCO stores under its subsidiary company, AEON CO. (M) BHD. (126926-H).

The name AEON is derived from the Latin word which means ‘eternity’. Through the years, JUSCO has become a household name to Malaysians and has been growing together with our nation since its first presence in Malaysia. ‘Customer First’ has always been the driving philosophy for the AEON group. Now, AEON CO. (M) BHD. (or AEON) is moving towards globalization by taking on the global brand name for all its stores and shopping centres. It is also the perfect opportunity for AEON to further strengthen its position in the market and to establish a clear brand identity.

In line with this rebranding exercise, AEON is organizing a press launch, series of campaign posters, TVC, radio contest, customer engagement activities, and special merchandise. Simultaneously, AEON will introduce a new tagline, ‘AEON ENRICHING YOUR LIFESTYLE’ to the public.

“The dynamic new brand name and logo is part of the company’s strategy to enhance its profile as a leading retailer in Malaysia, ” added Dato’ Abdullah bin Mohd Yusof, Chairman of AEON CO. (M) BHD..
“We believe that we have established the foundations not only for sustainable growth but also for excellence in delivering values and customer service to our customers,” Ms. Nur Qamarina Chew, Managing Director of AEON CO. (M) BHD. further explained.

To the entire one million J CARD holders, their member cards will be upgraded to the new AEON Member Card that retains some of the previous J CARD benefits plus some added new ones. All existing accumulated points will be transferred to the new AEON Member Card. Members can replace their card at the AEON Member Card Customer Service Counter for FREE starting from 15 March 2012 – 30 April 2012. Nonetheless, new members can enjoy a new fee rate at RM24 for a 3 years membership

財經新聞 :: 東方新聞網

Written by Melody Song

Monday, 21 June 2010 00:00

AEON Credit Service (M) Bhd is perhaps best known for its easy payment schemes for consumer durables at interest rates that are lower than those of financial institutions. Yet it serves a market — middle to low-income earners — that is often overlooked by other lenders which have eyes only for big money. With business prospects in the next five years expected to improve  as the income levels of Malaysians rise, the company plans to convert the customers of its present easy payment schemes to credit cards  this year — a move that will help drive growth. Revenue from its credit card operations has been flattish, writes OSK Research in a June 17 note. “We started our AEON credit card business in 2005. Our card base now is equivalent to about 1% of total credit cards in circulation (CIC). By FY2011F, our target is 150,000 AEON CIC from 113,000 principal CIC now,” says AEON Credit managing director Yasuhiro Kasai. Nationwide, Kasai estimates, there are about 8.94 million principal CIC. However, he predicts this number will shrink to about 7.5 million by year-end due to the RM50 and RM25 service tax on principal and supplementary cards respectively. AEON Credit is one of only two non-banks — the other being MBf Holdings Bhd — that offer credit cards. However, MBf does not offer unsecured loans for consumer durables. AEON Credit also differs from RCE Capital Bhd, which offers financing services mostly to government ser­vants and operates on a lower risk, lower returns model. AEON Credit could be viewed as sharing more similarities with retailers Courts Mammoth Bhd and Singer Sdn Bhd, which also provide financing options for in-store items, although AEON Credit claims that its easy payment interest rates are at least 30% lower and it offers card holders access to a wider range of products from 5,000 participating merchants. AEON Credit works closely with its sister company AEON Co (M) Bhd, which operates the Jusco chain of department stores, for its credit card business. Kasai says up to 75% of AEON Credit’s credit card issuances are channelled via Jusco, riding the retailer’s wide network and leveraging its 900,000 JCard (Jusco privilege card) base. At the company’s AGM in Kuala Lumpur on June 15, Kasai announced plans to widen AEON Credit’s nationwide merchant network to 6,000 to facilitate its business expansion plans by FY2011. He also revealed plans to introduce a new AEON Credit web portal for online easy payment application submissions for merchants. The online portal is expected to be launched in 1Q2011 while a new prepaid card venture is expected to take off in FY2012. AEON Credit hopes to grow its card acquiring business, which is now limited to Jusco, as well as broaden its base as a collection agency for its clients, which include utility and telecommunications companies. Kasai was appointed as managing director on April 20, replacing Naruhito Kuroda, who served in the position from April 2001. Kuroda is now a non-independent non-executive director on the board of AEON Credit and has returned to Japan to take up a position in the parent company. AEON Credit, a subsidiary of Tokyo Stock Exchange-listed AEON Credit Service Ltd, started business in 1997 providing easy payment schemes for consumer goods via selected retail merchants and chain stores. Today, its business has expanded to credit card issuance and personal finance schemes in addition to easy payments for small and medium enterprises. It also offers personal accident insurance underwritten by Tokio Marine Insurans (M) Bhd. The company was listed on the Main Market of Bursa Malaysia in December 2007. AEON Credit Ser­vice Ltd held a 56.7% stake in it as at April 30.