Another year of double-digit growth. AEON's 2011 recurring net profit of RM185.5m (+12% YoY) was in line with our RM180m forecast, after excluding RM11.3m in insurance claims, a RM12.7m gain on the disposal of its amusement business and a RM14.1m impairment loss. We continue to like AEON Co. for its entrenched market presence and strong balance sheet. We raise our TP to RM8.70 on rolling forward our valuations to 2013, based on 14x PER (unchanged), after revising our earnings estimates for 2012 and 2013 up by 2% and 5% respectively.

Maybank Research 27 Feb 2012

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