AEONTS hit by bad-loan provisions; dividend and buyback cushion the fall
Bad loans force profit down and targets cut AEONTS's quarterly profit fell about 19% as more customers missed payments, especially on used-car loans in Thailand and Cambodia. Brokers cut their price targets to 96–108 baht, saying provisions will stay high for another one to two quarters. This is the main force pushing the shares down.
It is the core reason the stock is under pressure and explains the wave of target-price cuts.
Bigger dividend and buyback support the shares AEONTS will pay a 3.00 baht interim dividend, up from 2.55 baht last year, and is buying back its own shares until 19 October. That gives investors a cash yield of roughly 6.6% a year and puts a floor under the price while profits are weak.
It is the main counterweight keeping the stock from falling further despite poor earnings.
Weak US jobs data lifts rate-sensitive Thai financials US hiring slowed sharply in September, so investors now expect the Federal Reserve to hold off raising interest rates. That helps rate-sensitive Thai financial stocks like AEONTS, which trade cheaply compared with their book value. Lower rates would ease funding costs and loan-repayment strain.
It is a fresh outside force that can support AEONTS shares even as company-specific news is weak.
0% iPhone instalment campaign targets year-end demand AEONTS launched a 0% interest iPhone 18 instalment plan for up to 36 months with major retailers, aiming to boost card spending and new customers during the year-end shopping season. It is a small positive for demand, but it does not fix the bad-loan problem.
It is a new company action that could support lending volume and card usage.