Kasikorn Securities lowered its target price for AEONTS shares to 108 baht from 120 baht but maintained its buy recommendation, expecting second-quarter net profit for fiscal year 2570 to come in at 697 million baht, down 12% both quarter-on-quarter and year-on-year. The decline is pressured by higher loan-loss provisions, weaker non-interest income, lower card spending, and margin pressure. First-half profit for fiscal year 2570 is expected to account for 51% of the revised full-year profit forecast. Credit cost is expected to rise 107 basis points quarter-on-quarter to 8.7% on higher bad debts in Cambodia's hire-purchase market, with pressure expected to continue for another one to two quarters. Loans are expected to fall 2.5% in fiscal year 2570 and stay flat in fiscal year 2571. The brokerage cut its profit forecasts for fiscal years 2570 to 2572 by 13.9%, 10.8%, and 5.9% to 2.9 billion baht, 3.17 billion baht, and 3.55 billion baht respectively. It views the 5.7% dividend yield and the potential to return capital to shareholders as likely to limit the downside.
AEON Thana Sinsap (Thailand) Public Company LimitedKasikorn cut AEONTS's target price to 108 baht and slashed FY2570-2572 profit forecasts on higher loan-loss provisions, weaker non-interest income, lower card spending, and margin pressure.
