Business Summary

Aeon Credit Service (M) Berhad (AEONCR Bhd) is a subsidiary of AEON Financial Service Co., Ltd., Japan (AFSJ). Incorporated on 6th December 1996, it started off as a company that provides Easy Payment schemes for purchase of consumer durable (in other words groceries and also home use electrical appliances) through appointed retail merchants and chain stores.

Since then, it has grown into a much bigger company. Today, it’s other businesses includes the issuance of Credit Cards, Easy Payment and hire purchase financing for motor vehicles, Personal Financing schemes, insurance sales business and other services. 

AEONCR Bhd currently serves and operates its business 100% entirely in its home base Malaysia. 

Last update: 22.09.2019

Dividends (5/5): ⭐ ⭐ ⭐ ⭐ ⭐ 

Value (3/5): ⭐ ⭐ ⭐ 

Financials (4/5): ⭐ ⭐ ⭐ ⭐ 

Growth (5/5): ⭐ ⭐ ⭐ ⭐ ⭐ 

Business (3/5): ⭐ ⭐ ⭐ 

Reference: (i) MyKayaPlus Metrics Definition (ii) MyKayaPlus Metric Evaluation Scale

Financial Performance

AEONCR Bhd’s business model is somewhat similar to a bank. It provides financing options (lending money) but as of the moment for consumer durables and also motor vehicles.  

AEONCR Bhd managed to grow its revenue from a mere RM 151 million to RM 1.3 billion in a span of 12 years. They do pose some challenges to local banks being a non-bank financial service provider, as they do compete in the consumer spending financing, credit cards, and also motor vehicle financing. 

Although the financing business space does have a fair share of players already, AEONCR Bhd has shown it has its advantages to secure and grow its top line and bottom line YoY.

Return on Equity is stable at 20.30%, while the Return on Assets is stable within the range of around 4%. 

Balance Sheet

YearAssets (RM’000)Liabilities (RM’000)Equities (RM’000)Current Ratio

2019 Capital Adequacy Ratio

Total Capital Ratio22.39%

In the year 2019, AEONCR Bhd has Assets of RM8.67 billion, liabilities of RM6.78 billion and Equities of RM1.87 billion. The current ratio is stable at 1.99, and Total Capital Ratio is at 22.39%, much higher than the safety limit set by Bank Negara Malaysia.

Free Cash Flow & Dividends Paid Out


Usually, dividend-paying stocks are big and stable and hardly see exciting growth. AEONCR BHD, on the other hand, has seen tremendous growth for the past 10 years. Revenue went up almost 10 times from 2008 to 2019 along with operational profits. Dividends paid outgrew around 13 times during that period of the year. 


If you were to have held AEONCR Bhd in the early year 2008 till today, you could be sitting on a 670% capital gain 😱😱. AEONCR Bhd has delivered solid growth and results during the 10-year frame that not only dividend paid out increased steadily year on year, that share prices also reflected the impressive growth and profits.

MyKayaPlus Verdict

AEONCR Bhd has proven that it is possible to grow a business in a saturated segment. Moreover not being a bank, the business achievements it has had along the years only amplifies the success.

Early 2019 AEONCR Bhd has successfully obtained a money-lending license from the Ministry of Housing. This would further complement AEONCR Bhd’s current business model to offer more personal financing assistance to cater to the growing population of Malaysia

Do you think AEONCR Bhd is able to replicate its past 10-year performance for the next 10 years

The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.
No warranty is made with respect to the accuracy, adequacy, reliability, suitability, applicability, or completeness of the information contained. The author disclaims any reward or responsibility for any gains or losses arising from direct and indirect use & application of any contents of the article/report/written material

Leave A Comment

error: Content is protected !!