Maybank Securities (Thailand) has maintained its Buy rating on AEON Thana Sinsap (Thailand), or AEONTS, with a target price of 125.0 baht, even though earnings came in weaker than expected and asset quality remains under short-term pressure. The stock is still supported mainly by an annual dividend yield of about 6.6% and an ongoing share buyback programme. AEONTS has declared an interim dividend of 3.0 baht per share for the first half, with the shares going ex-dividend on 21 October, representing an interim dividend yield of 3.3%. The buyback programme, which is scheduled to end on 19 October, is expected to give the share price further short-term support. On asset quality, which weakened in the second quarter, non-performing loans and credit risk costs rose compared with the previous quarter. The main cause was deteriorating credit quality in used-car hire-purchase loans in Thailand and Cambodia, but management has tightened approval criteria for that segment and expects asset quality in this portfolio to start returning to normal within the next six months. AEONTS currently still holds sufficient excess reserves of 370 million baht, comprising 230 million baht to cover economic uncertainty and another 140 million baht related to the increase in the minimum payment rate for credit cards. It also expects to record a gain of about 32 million baht from NPL sales in the third quarter of 2026. Maybank believes a significant rise in the share price will require clear signs that asset quality in the used-car hire-purchase segment is stabilising and that credit risk costs are starting to return to normal.
AEON Thana Sinsap (Thailand) Public Company LimitedMaybank maintains Buy rating with 125 baht target, citing 6.6% dividend yield and ongoing share buyback support.
