AEON CO. (M) BHD

KLSE (MYR): AEON (6599)

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Last Price

1.52

Today's Change

0.00 (0.00%)

Day's Change

1.47 - 1.54

Trading Volume

4,385,700

Overview

Market Cap

2,134 Million

NOSH

1,404 Million

Avg Volume (4 weeks)

3,475,435

4 Weeks Range

1.47 - 1.69

4 Weeks Price Volatility (%)

22.73%

52 Weeks Range

1.18 - 1.69

52 Weeks Price Volatility (%)

66.67%

Previous Close

1.52

Open

1.53

Bid

1.52 x 94,700

Ask

1.54 x 64,000

Day's Range

1.47 - 1.54

Trading Volume

4,385,700

Financial Highlight

Latest Quarter | Ann. Date

31-Mar-2022 [#1] | 18-May-2022

Next QR | Est. Ann. Date

30-Jun-2022 | 27-Aug-2022

T4Q P/E | EY

23.37 | 4.28%

T4Q DY | Payout %

1.97% | 46.12%

T4Q NAPS | P/NAPS

1.27 | 1.20

T4Q NP Margin | ROE

2.52% | 5.14%

Market Buzz
Company Profile

Sector: CONSUMER PRODUCTS & SERVICES

Sector: CONSUMER PRODUCTS & SERVICES

Subsector: RETAILERS

Subsector: RETAILERS

Description:

Aeon Co (M) Bhd is a Malaysia-based company that is primarily engaged in retailing and property management services. The majority of the company?s revenue comes from its retailing business. In addition to its core general merchandise stores, the company operates superstores, pharmacy and flat-price shops, and it runs an e-commerce business through www.shoppu.com.my. Most of AEON?s stores are located in suburban residential areas, aiming to meet the ever-changing demand of Malaysia?s vast middle-income group.

Discussions
11 people like this. Showing 50 of 3,863 comments

sunnyspoon

Buy now before going above Rm 2.00

2 weeks ago

wallstreetrookie

Aeon Mall Plans $268 million Mall in Dong Nai

2 weeks ago

wallstreetrookie

RM3.00 in no time

2 weeks ago

Angelramirez683

Still need to see it after this quarter

2 weeks ago

sunnyspoon

Sure double profit coming result

2 weeks ago

DickyMe

80 sen coming soon.

2 weeks ago

sunnyspoon

Collect more

2 weeks ago

Gold_Ticker

<Attention>: Fake upwarding

1 week ago

sunnyspoon

All the way Rm 2.00

1 week ago

faridfet

kaw kaw

1 week ago

StartOfTheBull

With Bank Negara interest rate hike announcement, consumers will have less money in the pocket after paying car and housing loans. Another 0.75 interest rate hike is in the card by next year. Big share price drop is expected after ex dividend.

1 week ago

sunnyspoon

No worry those who cry for milk government will give cash to spend, election is coming

1 week ago

faridfet

News 18 May 2022:

Aeon Co. (M) Bhd recorded a net profit of RM28.07mil in the first quarter ended March 31, 2022, a 27.38% improvement over RM22.03mil in the previous corresponding quarter on improved retail margin and higher impairment of trade receivables in the comparative quarter.

5 days ago

dragon328

Q1FY2022 net profit of RM28m is a little disappointing after the record Q4FY2021 net profit of RM70m?? Quarterly report does not provide sufficient explanation for the sharp drop in earnings from the Dec 2021 qtr.

5 days ago

dragon328

just one line of explanation - "mainly due to seasonal year end annual rebate recognition in the preceding quarter". I think shareholders deserve more explanation than this.

5 days ago

dragon328

Can someone here (those who have registered for the AGM) please request some further explanation from the management at tomorrow AGM and some guidance on earnings in coming quarters?

5 days ago

DickyMe

80 sen coming soon!

5 days ago

dragon328

The income tax rate in Q1FY2022 was exceptionally high at 48.7%, Maybank report says it was due to Cukai Makmur. With net profit of RM28m in Q1 annualised to just RM112m, how much cukai makmur will be imposed? I thought cukai makmur shall be imposed on earnings above RM100m?

4 days ago

dragon328

Maybank analyst has revised up income tax rate to 45% for FY2022 and a "normalised" 40% for FY2023 and FY2024 based on management guidance. Why still high at 40% for 2023 and 2024?? What is management going to do with it?

4 days ago

DickyMe

80 sen coming soon!

4 days ago

dragon328

Dickyme pls throw to me at 80 sen. I would sapu everything you have

4 days ago

DickyMe

When it reaches 80 sen you can grab it.

4 days ago

firehawk

dragon328 just one line of explanation - "mainly due to seasonal year end annual rebate recognition in the preceding quarter". I think shareholders deserve more explanation than this.
18/05/2022 8:40 PM
~~~~~~~~~~~~~~~~~~~~~~~~

concur with you

4 days ago

dragon328

Share price under attack now, mainly from short term traders who bet on good quarterly results

3 days ago

dragon328

A lack of explanation from the management did not help

3 days ago

dragon328

At 1.50 now, AEON is the most undervalued retails stock in Bursa

3 days ago

dragon328

Unfortunately Bursa now is flushed with short term traders who only chase hot stocks for short term gains

3 days ago

dragon328

Local analysts are not helping by valuing AEON at max 20x PER, while giving 50x PER to MRDIY or MyNews, and 30x-40x to Nestle or DLady

3 days ago

looiting

Who cares about brick and mortar retailers anymore when most of us are buying stuffs from online Apps.....Things can be undervalued for very long time if management cannot show how they can grow the business despite the challenges faced by rising online retailing

3 days ago

dragon328

True that many people buy stuffs from online merchants or platforms but there are certain things you do not buy online from Shopee or Lazada. DO you buy a carton of milk or some potatoes and fresh vegetables from Lazada?

2 days ago

dragon328

AEON has embarked on aggressive promotion for its online sales with same day delivery within 3 hours. Its online sales have jumped up many folds over the past 1 year and will continue to register triple digit growth for this year and next. Soon online sales may make up over 10% of total retails sales.

2 days ago

dragon328

Furthermore, the jewels in AEON Bhd are its 28 shopping malls in communities and various townships. Its property management services segment registers operating cash flows of close to RM500 million a year. It is in fact the owner of the largest shopping mall footprint in Malaysia with 13.4 million square feet of lettable space, more than Mid Valley or Pavilion in terms of net lettable space as well as operating cash flows.

2 days ago

dragon328

AEON shopping malls have been enjoying resilient and high occupancy over 92% despite a temporary blip during the pandemic years. With the pandemic largely behind us, retails footfalls to shopping malls have come back. AEON malls are packed now again.

2 days ago

dragon328

With the hot weather now, many patrons just go inside shopping malls like AEON malls in the community for the cool and clean environment, for grocery shopping, for visiting bookstore, for lunch and dinner, for drinks, etc. You can continue locking yourself at home and buy things online but how long can you do that for? It will drive you nuts and become narrow minded.

2 days ago

dragon328

Yes, AEON is facing challenges from online retail merchants as well as other traditional retailers like Tesco, but we can see that AEON management has been trying hard to defend and grow its market reach - (1) embark on digital transformation to increase online sales which have shown multiple folds of increase in past 12 months, (2) rejuvenile existing malls like Alpha Angle to improve shoppers' experience and increase retails footfalls, (3) install solar power systems at its shopping malls to save on electricity costs, (4) invite a lot more local and domestic suppliers from communities to participate in retailing of food and grocery goods in its malls, (5) increase local supplies and reduce imported goods to just 3% of supplies to contain inflation, (6) increase sales commission-based tenancy income mix from fixed tenancy income in its retail shop leasing to take advantage of rebounding retails sales of retail shop merchants in its malls, (7) raise minimum wage to RM1,500 per month for its local employees well before government directives and reduce on foreign labour employment which has become scarce and more expensive, hence reduce overall operating costs while creating more job opportunities for local communities and stronger bonds with local communities

2 days ago

dragon328

While we see that other competitors like Giant are making losses, AEON has been able to maintain and grow operating cash flows over the years, thanks to management efforts. You can see that its operating cash flows are so strong that AEON has managed to reduce borrowings by half from over RM900m to now just about RM450m nett debt.

2 days ago

dragon328

While shareholders have been complaining of reducing net profit over the past 9 years from over RM230m in FY2013 to just RM85 million in FY2021, but you need to look at the more important operating cash flows and EBITDA that has increased by over 50% in past 9 years.

2 days ago

dragon328

Why net profit has come down is due to:
(1) higher depreciation charges (from higher asset base due to mall expansion over the years)
(2) higher interest expenses (due to higher borrowings for mall expansion)
(3) high income tax rate of over 40% (due to non-deductible expenses)

2 days ago

dragon328

To resolve these issues and hence to improve on net profits and dividend payouts, the natural solution is to inject all AEON malls into a new REIT as:
(1) a REIT does not need to depreciate its assets
(2) proceeds from REIT listing will reduce borrowings to zero and save on interest expenses
(3) a REIT does not need to pay income tax as long as it distributes over 90% earnings as dividends

2 days ago

dragon328

Therefore, when AEON injects its malls into a REIT, we will straightaway see that its net profit will jump up by :
(1) RM330 million from removing the non-cash depreciation charges
(2) RM22m interest expenses every year
(3) about RM100 million of income tax payments every year
or a total increase of RM450 million per year from FY2021 of RM85m to well over RM500 million of net profit level

2 days ago

dragon328

AEON will increase shareholders' value by RM10 billion by creating a new REIT. Just by listing up 30% stakes of the REIT (while retaining 70% majority control), AEON will see cash proceeds of RM3 billion coming in which will be handy to reduce borrowings, for future expansion and for special dividends of almost RM2.00 per share!

2 days ago

dragon328

This is real and the benefits are huge. Please read the article again for more detailed info:

https://klse.i3investor.com/web/blog/detail/dragon328/2022-05-20-story...

2 days ago

sunnyspoon

Any plan going to list Aeon reit or just your proposal, dragon32

2 days ago

dragon328

It should be within this year when it happens

2 days ago

DickyMe

80 sen coming soon!

2 days ago

sunnyspoon

I already bought alot 80 sen

2 days ago

dragon328

I bought at even cheaper at 75 sen in 2020 now adding more at 1.50

1 day ago

StartOfTheBull

Recession coming.

1 day ago

sunnyspoon

Buy 1.48

12 hours ago

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