Hot Stock Aeon Credit gains 2% on plans to diversify income stream

Hot Stock Aeon Credit gains 2% on plans to diversify income stream
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Wednesday, 19 June 2013 15:33

KUALA LUMPUR (June 19): AEON CREDIT SERVICE (M) BHD [] emerged as the second-biggest gainer today after its group managing director told reporters that the company is looking to diversify its income stream.
At 3:07 pm, Aeon Credit shares gained 36 sen or 2.06% to RM17.84 after reaching as high as RM17.98. The counter had a total trading volume of 240,600 shares.

After the company’s annual general meeting yesterday, group managing director Yasuhiro Kasai said Aeon Credit intends to diversify its income stream by expanding into a fee-based business.

The fee business will be expanded through acquiring business, business process outsourcing, and Internet-related business.

Currently, its main income generator is its financing business.

“We are positive about the growth of our financing business, but we would also like to diversify into other non-core businesses to expand our reach in the market,” Kasai was quoted by the media as saying.

He said Aeon Credit is positive on loan growth within its financial year ending February 20, 2014 (FY14), and is looking at niche markets to sustain its financing volume.

In the first quarter this financial year (1QFY14), the company recorded a total transaction and financing volume of RM787 million, which was up 50.2% from a year earlier. The growth was attributed to favourable economic environment and marketing and promotion activities.