Period 2Q13/1H13
Actual vs. Expectations
Within expectations.
ACSM reported 1HFY13 net profit of RM60.2m that was 47% of ours and 46% of the
consensus’ estimate.
Dividends Declared an interim single tier dividend of
15.50 sen per share.
Key Result Highlights
The 2QFY13 total
revenue of RM121.1m was up 36% YoY, driven mainly by higher gross receivables
(+41% YoY) with a stable interest spread of 19%.
The group’s 2QFY13
loans growth was mainly underpinned by higher contributions from the personal
financing (+148% YoY), vehicle easy payment (+41%), general easy payment (+18%)
and the credit card segments (18%). The net NPL remained low at 1.53% (vs.
1Q13: 1.68%).
The group’s 2Q13
pretax profit of RM43.7m meanwhile rose by 39% YoY on the back of a higher
revenue.
Its motor-cycle
financing segment contributed 34% to the group’s total revenue, followed by 16%,
25% and 18% from the credit cards, general easy payment and personal financing segments
respectively.
The annualised ROE
meanwhile was at a solid 33.4% vs. FY12’s 30.7%.
Outlook The
group’s loan growth and credit quality outlook remained intact according to management,
underpinned by its strong merchant distribution platform. Going forward, we
view a 30% loan growth target in FY13 as achievable with a favourable outlook
for its (i) Credit Card, (ii) Personal Finance and (iii) Motorcycle Financing
divisions. This should result in an
impressive 39% earnings growth in FY13.
However, we think the current share price could have priced
in the strong earnings growth already.
Change to Forecasts
No changes in our
forecasts.
Rating Maintained MARKET PERFORM
At the current level,
the stock offers a potential capital downside of 3.7% but this is expected to be
offset by a dividend yield of 4.1%, which brings the potential total return to
only 0.4% over the next 12 months.
Valuation We
have raised ACSM’s ex-bonus target price to RM9.70 (from RM8.30 previously)
based on 9.0x over FY14 EPS of RM1.08 as we roll forward our valuation year.
The TP implies a 3.13x FY14 P/BV.
Risks Potential higher loan growth in 2012.
Source: Kenanga
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