Aeon Credit Service stands out as finance stock

Kuala Lumpur

AMID tepid economic activity and softer loans growth, one lender has emerged as a viable alternative to banking stocks owing to its resilient micro-financing business and healthy receivables growth.

Given that its receivables remain healthy, its return on equity is in excess of 20 per cent and its asset quality is improving, analysts consider Aeon Credit Service (M) to be better shielded from the macroeconomic headwinds buffering the banking sector.

Year-to-date, the lender - nearly 60 per cent owned by Japan's Aeon Financial Services - is 23 per cent up at RM14.58, compared to the Bursa Malaysia …