AEONTS’s Profit Beats Expectation/Offers Dividend at ฿1.85, Analyst Upgrades TP to ฿180

“Aeon Thana Sinsap” (AEONTS) reported a net profit for FY2Q20 (June – August 2020) at 966 million baht, an increase of 3%, which is higher than analysts estimated due to continued growth of bad debt recovery and efficient control of the operation cost. The Board of Directors also approved a dividend payment of ฿1.85/share to be paid on November 5, 2020. Tisco Securities upgraded AEONTS’ target price to ฿180.00/share.

 

Aeon Thana Sinsap (Thailand) Public Company Limited (AEONTS)’s FY2Q20 ended August 31, 2020 net profit was 966.48 million baht, an increase of 3% YoY and earning per share was 3.87 baht. For the first half of 2020, AEONTS recorded net profit of 1,497 million baht, a decrease of 22% YoY, and earning per share was 5.99 baht, which was resulted from higher provision in the first quarter with probable forward looking macroeconomic factors.

 

The increase of FY2Q20’s net profit was mainly contributed by continued growth of bad debt recovery and efficient control of the operation cost as well as the relaxation of lockdown measures both in Thailand and abroad, supporting economic activities to resume operations.

 

Meanwhile, the total consolidated revenues in the second quarter was 5,384 million baht, decreasing 5% YoY and 5% QoQ. In the first half of fiscal year 2020, the total consolidated revenues were 11,040 million baht, decreasing 1% YoY. The total consolidated expenses was 9,199 million baht, an increase of 6% YoY.

 

Tisco Securities stated that AEONTS reported a 82.3% higher net profit for FY2Q20 when compared to a quarter earlier and 2.6% higher from a year ago to stand at 966 million baht, better than the market expectation of 21%. Recommends “BUY” with a target price at ฿180/share.