KUALA LUMPUR (Dec 22): Affin Hwang Investment Bank Bhd maintained its buy call for Aeon Credit Service (M) Bhd shares with an unchanged target price (TP) of RM15.30. Affin Hwang said Aeon Credit is a "high-growth, high-return financial stock".

At 4:09pm, Aeon Credit shares were traded at RM13.56.

"We note that Aeon Credit’s share price may potentially re-rate due to the ongoing digital transformation (mobile wallet/ewallet/cashless and paperless branches), marketing initiatives (acquisition of merchants) and 2% income tax reduction for the lower income group (under Budget 2018), which in our view are game changers for the company in FY19," Affin Hwang said.  

Meanwhile, MIDF Amanah Investment Bank Bhd said it had maintained its buy recommendation for Aeon Credit shares, with an unchanged TP of RM14.75.

"We continue to be optimistic on the outlook on the group’s business based on its value chain transformation journey. In addition, we are positive on the group’s initiatives to improve customer experience via the the introduction of e-wallet and e-money cards, in which we opine will improve the customers’ brand loyalty with Aeon Credit," MIDF said. 

Affin Hwang's and MIDF's notes followed Aeon Credit's third quarter results, annoucement yesterday. 

Aeon Credit said net profit rose to RM70.55 million in the third quarter ended Nov 30, 2017 (3QFY18), from RM67.05 million a year earlier. Aeon Credit said nine-month net profit climbed to RM217.75 million (9MFY18), from RM184.97 million.