AEON unveiled its new brand name 'AEON' and tagline 'AEON Enriching Your Lifestyle', superseding the 'Jusco' brand that most Malaysians have grown accustomed to over the past 28 years The rebranding exercise will take place over the next two years, with the ultimate aim of embracing one brand name for all its stores and shopping centres on a global scale. Moving forward, the company plans to open another outlet in Manjung, Perak after the grand opening of the Ipoh Station 18 mall lately. Maintain NEUTRAL with a FV of RM8.53 given the limited upside potential for the share price. Maintain NEUTRAL with FV unchanged at RM8.53 given the limited upside of its share price.
Rebranding Jusco to AEON. AEON Co. (M), formerly known as Jaya Jusco Stores, was established since 1984 in response to the Malaysian Government's invitation to modernize the retailing industry in Malaysia. The 'Jusco' brand name, which is entrenched in the hearts and minds of many Malaysians, will be rebranded as AEON ' which means 'eternity' in Latin. All Jusco signs will be replaced gradually over the next two years. The rebranding exercise is part of the company's strategy to standardize its corporate identity, which involves the introduction of: (i) a new brand name, AEON, (ii) a new tagline 'AEON Enriching Your Lifestyle', and (iii) AEON membership cards.
Replace your card today. Its customer loyalty programme, the J Card will also be replaced by the AEON member card. Some 1m J Card members will enjoy additional privileges such as instant member reward points, member get member special offers and 3-year memberships for the price of 2-year memberships when they replace their existing member cards (also applicable to new card member registrations). Free card replacements are only offered until 30 April 2012, after which a RM5 replacement fee will be charged. The new card comes in four new designs ' Corporate, People, Peace and Community ' which reflect the image and core values of AEON.
New Ipoh mall.The new AEON Ipoh Station 18 shopping centre, which is the largest mall in Ipoh, opened its doors to the public on 29 March 2012. With only two other major shopping malls (Jusco Kinta City and Ipoh Parade) in the city, the new addition will definitely broaden the variety of shops and merchandises for local shoppers. The 3-storey new AEON mall consists of more than 160 shops with around 700k sq ft of lettable area. Located only 20 minutes' drive from Ipoh town, the mall is strategically surrounded by residential areas and newly developed shop houses (opposite Tesco) which we believe will be Ipoh's next hot spot. Another outlet in Manjung, Perak is currently under construction and slated to open by this year as well.
Maintain NEUTRAL.AEON's share price has appreciated by some 31.2% over the past 3 months, outperforming the KLCI by 26.3%. As such, we consider current valuations as fair. Maintain NEUTRAL with its FV unchanged at RM8.53.