Definitive Analysis
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AEON Credit Service (Asia) Company Limited (0900.HK)

Company Dividend Discount ModelIndustry: Financial - Credit ServicesSector: Financial Services

Valuation Snapshot

Stable Growth$11.88 - $19.79$15.36
Multi-Stage$22.35 - $24.56$23.43
Blended Fair Value$19.40
Current Price$6.35
Upside205.47%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS1.76%2.92%0.480.460.440.400.440.440.440.400.360.36
YoY Growth--4.35%4.55%10.00%-9.09%0.00%0.00%10.00%11.11%0.00%0.00%
Dividend Yield--7.56%7.63%8.38%7.66%8.48%8.27%5.97%6.11%6.02%6.92%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)426.55
(-) Cash Dividends Paid (M)201.01
(=) Cash Retained (M)225.54
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)85.3153.3231.99
Cash Retained (M)225.54225.54225.54
(-) Cash Required (M)-85.31-53.32-31.99
(=) Excess Retained (M)140.23172.22193.55
(/) Shares Outstanding (M)418.75418.75418.75
(=) Excess Retained per Share0.330.410.46
LTM Dividend per Share0.480.480.48
(+) Excess Retained per Share0.330.410.46
(=) Adjusted Dividend0.810.890.94
WACC / Discount Rate6.60%6.60%6.60%
Growth Rate-0.24%0.76%1.76%
Fair Value$11.88$15.36$19.79
Upside / Downside87.02%141.94%211.62%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)426.55429.77433.02436.29439.59442.91456.20
Payout Ratio47.12%55.70%64.27%72.85%81.42%90.00%92.50%
Projected Dividends (M)201.01239.38278.32317.84357.93398.62421.98

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.60%6.60%6.60%
Growth Rate-0.24%0.76%1.76%
Year 1 PV (M)222.33224.56226.79
Year 2 PV (M)240.08244.92249.81
Year 3 PV (M)254.64262.37270.26
Year 4 PV (M)266.34277.18288.35
Year 5 PV (M)275.48289.57304.23
PV of Terminal Value (M)8,098.848,512.998,943.92
Equity Value (M)9,357.719,811.5910,283.35
Shares Outstanding (M)418.75418.75418.75
Fair Value$22.35$23.43$24.56
Upside / Downside251.92%268.99%286.73%

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