20th June was the date for AEONCR AGM year 2019:
Since the AGM for this year wasn't around school holiday,
considering the KL heavy traffic jam at morning,
which might cost me 2 hours of driving to arrive....
(even though my house is just 50km away from the hotel....)
Anyway I decided to take some of the dividend from AEONCR and booked a hotel room at InterContinental Hotel a night before the AGM:
Luckily AEONCR helped to pay my parking fees~~~
First,
below are some of the slides shown during AGM:
The volume growth of business were driven by Personal Financing, Motorcycle Financing and Credit Card:
The asset quality is better since AEONCR recruited more M40 customers:
For AEON E-wallet,
the company still integrating all customer database together from AEON and AEONBIG.
Then only will work together with other industry players,
so that the user of AEON E-wallet will not only enjoy benefits at AEON,
but also some other places:
For the business,
AEONCR will provide Objective Financing for customers with specific needs of cash such as medical care, wedding, renovation.
For SME Financing segment,
AEONCR also obtained new license which now the company not only can provide finacing for SME to purchase Equipment hire purchase,
but also as Working Capital:
Next is Q&A session.
The management mentioned that the annual target LOAN growth is around 10%~15%,
and annual target growth of Credit Card is double digit.
A shareholder was concerned about the fluctuation of US dollar,
CFO answered that the US dollar loan are all fully hedged,
maybe it will be fluctuated when shown in the quarter financial report,
but upon settlement it will be no effect at all,
since the cost of US dollar loan is fixed at first.
Basically,
the US dollar loan are from Japan banks,
which the interest rate is only around 4%,
and the hedging advantage is provided as mentioned above.
As for the lawsuit,
the management said that it might be dragged for few years,
considering the cost of lawsuit and the benefits of company and shareholders,
the management still think that the lawsuit needs to continue,
since they believe that they are at the stronger ground.
By attending the AGM myself,
I was able to sense the confidence from the management regarding this issue,
seems like is worthy to attend~
A shareholder was concerned about AEONCR entering SME Financing market,
the management mentioned that they are expert in Consumer Financing,
but they are still new at SME Financing,
so they will operate with cautious.
A shareholder was concerned about the world economic especially the trade war between US and China,
the management said that they can only do their best in managing the company and focus at business in Malaysia.
That's all for what I saw and heard during AEONCR AGM,
if you want to know more details,
feel free to attend the AGM next year~
After around 1 week of AGM,
AEONCR finally released latest quarter financial report.
I was happy to see that the revenue grew,
HOWEVER,
next I saw the high operating expense.............
Coupled with the higher finance cost:
Suddenly I felt like there is a butterfly in my stomach,
and yeah,
the profit dropped................
Though the business is growing,
and NPL finally reached 1.92%.
There are two reasons of highe operating expense:
1)higher impairment losses
2)higher promotional expenses
Higher finance cost was due to higher borrowings.
The current year prospects:
That's all for the financial report,
for more details please feel free to download it from BURSA website and read it.
As for whether AEONCR is worthy to invest or not?
Investment is about doing own thinking, making own decision.
Thanks for reading.
I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.
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