Board Change • Jun 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 8 experienced directors. 1 highly experienced director. Chief Merchandising Officer, Deputy MD & Executive Alternate Director Hidekazu Iwaoka was the last director to join the board, commencing their role in 2026. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • May 22
Upcoming dividend of RM0.045 per share Eligible shareholders must have bought the stock before 29 May 2026. Payment date: 18 June 2026. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 3.9%. Lower than top quartile of Malaysian dividend payers (5.5%). Higher than average of industry peers (1.2%). Buy Or Sell Opportunity • May 20
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 7.9% to RM1.16. The fair value is estimated to be RM1.46, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 6.9%. Revenue is forecast to grow by 11% in 2 years. Earnings are forecast to grow by 16% in the next 2 years. Buy Or Sell Opportunity • May 05
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.6% to RM1.13. The fair value is estimated to be RM1.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 5.8%. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings are also forecast to grow by 9.8% per annum over the same time period. Reported Earnings • Apr 24
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: RM0.095 (up from RM0.091 in FY 2024). Revenue: RM4.29b (flat on FY 2024). Net income: RM133.8m (up 4.5% from FY 2024). Profit margin: 3.1% (up from 3.0% in FY 2024). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 8.0%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Consumer Retailing industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 22
Dividend of RM0.045 announced Shareholders will receive a dividend of RM0.045. Ex-date: 29th May 2026 Payment date: 18th June 2026 Dividend yield will be 3.8%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is well covered by both earnings (47% earnings payout ratio) and cash flows (23% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 32% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 21
Aeon Co. (M) Bhd., Annual General Meeting, May 20, 2026 Aeon Co. (M) Bhd., Annual General Meeting, May 20, 2026, at 14:00 Singapore Standard Time. Location: grand ballroom, level 2, intercontinental kuala lumpur, 165, jalan ampang, 50450 kuala lumpur, Malaysia Buy Or Sell Opportunity • Mar 16
Now 20% undervalued Over the last 90 days, the stock has risen 5.6% to RM1.13. The fair value is estimated to be RM1.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 5.8%. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings are also forecast to grow by 9.8% per annum over the same time period. Reported Earnings • Feb 28
Full year 2025 earnings released: EPS: RM0.095 (vs RM0.091 in FY 2024) Full year 2025 results: EPS: RM0.095 (up from RM0.091 in FY 2024). Revenue: RM4.29b (flat on FY 2024). Net income: RM133.8m (up 4.5% from FY 2024). Profit margin: 3.1% (up from 3.0% in FY 2024). Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Consumer Retailing industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Price Target Changed • Jan 12
Price target decreased by 8.0% to RM1.53 Down from RM1.67, the current price target is an average from 8 analysts. New target price is 38% above last closing price of RM1.11. Stock is down 27% over the past year. The company is forecast to post earnings per share of RM0.10 for next year compared to RM0.091 last year. Reported Earnings • Nov 20
Third quarter 2025 earnings released: EPS: RM0.01 (vs RM0.013 in 3Q 2024) Third quarter 2025 results: EPS: RM0.01 (down from RM0.013 in 3Q 2024). Revenue: RM995.2m (flat on 3Q 2024). Net income: RM14.6m (down 22% from 3Q 2024). Profit margin: 1.5% (down from 1.9% in 3Q 2024). Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Retailing industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 26
Second quarter 2025 earnings released: EPS: RM0.009 (vs RM0.02 in 2Q 2024) Second quarter 2025 results: EPS: RM0.009 (down from RM0.02 in 2Q 2024). Revenue: RM999.6m (down 2.1% from 2Q 2024). Net income: RM12.3m (down 56% from 2Q 2024). Profit margin: 1.2% (down from 2.7% in 2Q 2024). Revenue is forecast to grow 4.1% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Consumer Retailing industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 4% per year. Upcoming Dividend • May 28
Upcoming dividend of RM0.045 per share Eligible shareholders must have bought the stock before 04 June 2025. Payment date: 19 June 2025. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Malaysian dividend payers (5.6%). Lower than average of industry peers (3.8%). Announcement • May 22
Aeon Co. (M) Bhd. Approves Final Dividend for the Financial Year Ended 31 December 2024 Aeon Co. (M) Bhd. announced that at the AGM held on 22 May 2025, declared and approved the payment of a final dividend of 4.5 sen per ordinary share in respect of the financial year ended 31 December 2024. Declared Dividend • Apr 24
Dividend increased to RM0.045 Dividend of RM0.045 is 13% higher than last year. Ex-date: 4th June 2025 Payment date: 19th June 2025 Dividend yield will be 3.2%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is well covered by both earnings (49% earnings payout ratio) and cash flows (16% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 39% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 22
Aeon Co. (M) Bhd., Annual General Meeting, May 22, 2025 Aeon Co. (M) Bhd., Annual General Meeting, May 22, 2025, at 14:00 Singapore Standard Time. Location: grand ballroom, level 2, intercontinental kuala lumpur, 165, jalan ampang, 50450 kuala lumpur, Malaysia Reported Earnings • Feb 26
Full year 2024 earnings released: EPS: RM0.091 (vs RM0.082 in FY 2023) Full year 2024 results: EPS: RM0.091 (up from RM0.082 in FY 2023). Revenue: RM4.26b (up 3.2% from FY 2023). Net income: RM128.0m (up 12% from FY 2023). Profit margin: 3.0% (up from 2.8% in FY 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 9.3% growth forecast for the Consumer Retailing industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 25
Aeon Co. (M) Bhd. Proposes Final Dividend in Respect of the Financial Year Ended 31 December 2024 The Board of Directors of the Aeon Co. (M) Bhd. proposed a final dividend of 4.50 sen per ordinary share in respect of the financial year ended 31 December 2024 for the approval of the shareholders at the forthcoming Company's Fortieth Annual General Meeting. The proposed entitlement and payment dates for the final dividend shall be determined at a later date and announced accordingly. Announcement • Jan 08
AEON CO. (M) BHD. Announces Legal Updates AEON CO. (M) BHD. provided update on Betanaz Properties Sdn. Bhd. Kuala Lumpur High Court Civil Suit against the Company. The Company counterclaim against Betanaz Properties Sdn. Bhd. and Ahmad Zaki Resources Berhad. Reference is made to the Company’s announcements on 3 March 2021, 30 March 2021, 22 October 2021, 12 May 2022 and 18 December 2024 pertaining to the legal suit received from Betanaz Properties Sdn. Bhd. [Company No. 201201025590 (1010080-V)] (“the Plaintiff”) in the High Court of Malaya in Kuala Lumpur. The Company announced that the Company had filed both the Notice of Appeal and the Stay Application for a stay of execution of the High Court decision on 23 December 2024. On 7 January 2025, the High Court had granted the Company a conditional stay with payment of the judgment sum amounting to MYR 18,678,255.27 to be made to Betanaz Properties Sdn Bhd (“Betanaz”)’s solicitors as stakeholders in an interest-bearing account and the legal costs for the sum of MYR 200,000 awarded to Betanaz and MYR 100,000 to Ahmad Zaki Resources Berhad, respectively, latest by 28 January 2025. The judgment by the High Court on 16 December 2024 will be stayed pending appeal at the Court of Appeal. The financial impact will be a cash outflow equal to the amount of the judgement. There is no operational impact to the Company. Announcement • Dec 18
Betanaz Properties Sdn. Bhd. Files Kuala Lumpur High Court Civil Suit Against the Aeon Co. (M) Bhd and the Company Counterclaim Against Betanaz Properties Sdn. Bhd. and Ahmad Zaki Resources Berhad Betanaz Properties Sdn. Bhd. filed Kuala Lumpur High Court Civil Suit against the Aeon Co. (M) Bhd. (Company) and the Company counterclaim against Betanaz Properties Sdn. Bhd. and Ahmad Zaki Resources Berhad Reference is made to the Company’s announcements on 3 March 2021, 30 March 2021, 22 October 2021 and 12 May 2022 pertaining to the legal suit received from Betanaz Properties Sdn. Bhd. [Company No. 201201025590 (1010080-V)] (“the Plaintiff”) in the High Court of Malaya in Kuala Lumpur. With regards to the Company’s announcement on 30 March 2021 whereby the Company, as the plaintiff, had announced the filing of a counterclaim against Betanaz Properties Sdn. Bhd. (“Betanaz”) as the first defendant, and Ahmad Zaki Resources Berhad [Company No. 199701017271 (432768-X)] (“AZRB”) as the second defendant (“Main Suit”), the Company had subsequently received an application by AZRB to strike out the Company’s counterclaim against AZRB. In furtherance to the Company’s announcement on 22 October 2021, the High Court judge had allowed AZRB’s application to strike out the Company’s counterclaim against AZRB on the basis that the bridge across the Kuantan River, connecting Bandar Kuantan to Bandar Putra, Tanjung Lumpur (“Bridge”) was completed and the Company’s counterclaim is not sustainable. Upon the advice of the Company’s legal counsel, the Company filed an appeal against the decision of the High Court to allow AZRB’s application to strike out the Company’s counterclaim against AZRB on 29 March 2021, on the basis that the Bridge was not completed on or before the expiry of the condition precedent period of the Tenancy Agreement dated 24 August 2017 and the Commercial Agreement dated 24 August 2017. Subsequently on the 9 May 2022, pursuant to the Company’s appeal against the High Court’s decision to allow AZRB’s application to strike out the Company’s counterclaim against AZRB, the Court of Appeal has decided in favor of the Company and subsequently, AZRB will be reinstated as a party to the Company’s counterclaim as the second defendant in the trial for the Main Suit. The Company wishes to announce that on 16 December 2024, the Learned High Court Judge decided, inter alia, that Company had breached the Tenancy Agreement by failing to honor its part of the bargain and being liable for the monthly rental payable to Betanaz. However, since there was an absence of compelling evidence to prove that the Company was bound to the 10 years Lease (Lease Annexure annexed to the Tenancy Agreement dated 24 August 2017), Betanaz’s claim was disallowed as it would be grossly unfair and unjust. Therefore, the High Court decision is as follows:- 1. for the Civil Suit WA-22NCVC-121-03/2021:- a) The claim on judgement sum of RM59,302,302.97 was not allowed; b) The claim on the final judgement for RM18,678,255.27 against the Company was allowed. c) Interest at the rate of 5% per annum on the sum of RM18,678,255.27 is allowed from 1 March 2021 until the full payment is paid; d) Costs of RM200,000.00 is to be paid by the Company to Betanaz within 45 days from 16 December 2024; e) Costs of RM100,000.00 is to be paid by the Company to AZRB within 45 days from 16 December 2024; f) The Company’s counterclaim against Betanaz and AZRB was dismissed; 2. For the Civil Suit WA-24NCvC-1254-07/2021, the Company’s originating summons against Betanaz was dismissed and a date for assessment of damages (arising from the ex-parte injunction order dated 9 February 2021 against Betanaz) will be fixed. The Company has been advised by its legal counsel and will be appealing against the High Court decision dated 16 December 2024 and also applying for a stay of execution of the said High Court decision. At this juncture, the Board is unable to ascertain the financial impact to the Company pending the outcome of the legal suit. If there is any further updates or development on the above suit, further announcement will be made in due course. Reported Earnings • Nov 22
Third quarter 2024 earnings released: EPS: RM0.013 (vs RM0.01 in 3Q 2023) Third quarter 2024 results: EPS: RM0.013 (up from RM0.01 in 3Q 2023). Revenue: RM1.00b (up 4.9% from 3Q 2023). Net income: RM18.8m (up 36% from 3Q 2023). Profit margin: 1.9% (up from 1.4% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Consumer Retailing industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Price Target Changed • Aug 30
Price target increased by 15% to RM1.69 Up from RM1.47, the current price target is an average from 7 analysts. New target price is 18% above last closing price of RM1.44. Stock is up 37% over the past year. The company is forecast to post earnings per share of RM0.11 for next year compared to RM0.082 last year. Reported Earnings • Aug 30
Second quarter 2024 earnings released: EPS: RM0.02 (vs RM0.022 in 2Q 2023) Second quarter 2024 results: EPS: RM0.02 (down from RM0.022 in 2Q 2023). Revenue: RM1.02b (down 1.2% from 2Q 2023). Net income: RM27.7m (down 8.3% from 2Q 2023). Profit margin: 2.7% (down from 2.9% in 2Q 2023). Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Consumer Retailing industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Aug 05
Now 20% undervalued Over the last 90 days, the stock has risen 12% to RM1.29. The fair value is estimated to be RM1.62, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 5.1% over the last 3 years. Earnings per share has grown by 22%. Revenue is forecast to grow by 6.3% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Upcoming Dividend • May 29
Upcoming dividend of RM0.04 per share Eligible shareholders must have bought the stock before 05 June 2024. Payment date: 20 June 2024. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 2.8%. Lower than top quartile of Malaysian dividend payers (4.3%). Higher than average of industry peers (2.1%). Announcement • May 24
Aeon Co. (M) Bhd. Approves the Final Dividend for the Financial Year Ended 31 December 2023 Aeon Co. (M) Bhd. approved the payment of a final dividend of 4.0 sen per ordinary share in respect of the financial year ended 31 December 2023, at the AGM held on May 23, 2024. Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to RM1.39, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 17x in the Consumer Retailing industry in Asia. Total returns to shareholders of 21% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM1.48 per share. Price Target Changed • May 17
Price target increased by 9.2% to RM1.44 Up from RM1.32, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of RM1.40. Stock is up 7.7% over the past year. The company is forecast to post earnings per share of RM0.10 for next year compared to RM0.082 last year. Reported Earnings • Apr 26
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: RM0.082 (up from RM0.079 in FY 2022). Revenue: RM4.13b (flat on FY 2022). Net income: RM114.8m (up 3.2% from FY 2022). Profit margin: 2.8% (up from 2.7% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 2.2%. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Consumer Retailing industry in Asia. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 25
Dividend of RM0.04 announced Dividend of RM0.04 is the same as last year. Ex-date: 5th June 2024 Payment date: 20th June 2024 Dividend yield will be 3.6%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is well covered by both earnings (49% earnings payout ratio) and cash flows (23% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 24
Aeon Co. (M) Bhd., Annual General Meeting, May 23, 2024 Aeon Co. (M) Bhd., Annual General Meeting, May 23, 2024, at 10:00 Singapore Standard Time. Location: 12th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya Selangor Malaysia Agenda: To receive the Audited Financial Statements for the financial year ended 31 December 2023 together with the Reports of the Directors and Auditors thereon; to declare and approve the payment of a final dividend in respect of the financial year ended 31 December 2023; to approve the Directors' fees and benefits payable to the Non-Executive Directors for the period from 24 May 2024 until the conclusion of the next Annual General Meeting of the Company to be held in 2025; to re-elect the Directors who are retiring under Article 74 of the Articles of Association of the Company; and to consider other matters. Buy Or Sell Opportunity • Apr 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 4.3% to RM1.10. The fair value is estimated to be RM1.38, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to grow by 2.4% per annum. Earnings are also forecast to grow by 8.9% per annum over the same time period. Buy Or Sell Opportunity • Mar 21
Now 21% undervalued The stock has been flat over the last 90 days, currently trading at RM1.09. The fair value is estimated to be RM1.37, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 3.9% over the last 3 years. Earnings per share has grown by 27%. For the next 3 years, revenue is forecast to grow by 2.6% per annum. Earnings are also forecast to grow by 8.9% per annum over the same time period. Reported Earnings • Feb 24
Full year 2023 earnings released: EPS: RM0.082 (vs RM0.079 in FY 2022) Full year 2023 results: EPS: RM0.082 (up from RM0.079 in FY 2022). Revenue: RM4.13b (flat on FY 2022). Net income: RM114.8m (up 3.2% from FY 2022). Profit margin: 2.8% (up from 2.7% in FY 2022). Revenue is forecast to grow 4.3% p.a. on average during the next 2 years, compared to a 8.2% growth forecast for the Consumer Retailing industry in Asia. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Feb 23
Aeon Co. (M) Bhd. Proposes Final Dividend in Respect of the Financial Year Ended 31 December 2023 The Board of Directors of the Aeon Co. (M) Bhd. proposed a final dividend of 4.0 sen per ordinary share in respect of the financial year ended 31 December 2023 for the approval of the shareholders at the forthcoming Company's Thirty-Ninth Annual General Meeting. Announcement • Jan 19
Aeon Co. (M) Bhd. Appoints Tan Ai Lee as Chief Financial Officer, Effective from January 21, 2024 Aeon Co. (M) Bhd. announced the appointment of Miss Tan Ai Lee as Chief Financial Officer. Age 40, Date of change 21 January 2024. Qualifications Professional Qualification Accounting Association of Chartered Certified Accountants (ACCA) Fellow Member of Association of Chartered Certified Accountants (ACCA). Working experience and occupation: July 2023 - Current - Acting Chief Financial Officer, AEON CO. (M) BHD. January 2022 - July 2023 - Head of Business Finance, AEON CO. (M) BHD. May 2020 - January 2022 - Vice President Finance, Silverlake Symmetri (Malaysia) Sdn Bhd. January 2018 - March 2020 - Head of Management Reporting and Corporate Planning, Astro Group Services Sdn Bhd. June 2012 - December 2017 - Finance Business Partner, Assistant Vice President, Astro Group Services Sdn Bhd. April 2007 - May 2012 - Transaction Services Manager, PricewaterhouseCoopers Advisory Services Sdn Bhd. January 2004 - April 2007 - Senior Associate, PricewaterhouseCoopers Malaysia. Price Target Changed • Nov 27
Price target decreased by 8.7% to RM1.31 Down from RM1.43, the current price target is an average from 8 analysts. New target price is 21% above last closing price of RM1.08. Stock is down 22% over the past year. The company is forecast to post earnings per share of RM0.084 for next year compared to RM0.079 last year. Reported Earnings • Nov 25
Third quarter 2023 earnings released: EPS: RM0.01 (vs RM0.008 in 3Q 2022) Third quarter 2023 results: EPS: RM0.01 (up from RM0.008 in 3Q 2022). Revenue: RM955.9m (down 2.7% from 3Q 2022). Net income: RM13.8m (up 27% from 3Q 2022). Profit margin: 1.4% (up from 1.1% in 3Q 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Consumer Retailing industry in Asia. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. New Risk • Nov 25
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 2.6% Last year net profit margin: 3.9% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (2.6% net profit margin). Announcement • Aug 23
Aeon Co. (M) Bhd. Reports Fixed Assets Written Off for the Quarter Ended June 30, 2023 Aeon Co. (M) Bhd. reported Fixed assets written off for the quarter ended June 30, 2023. For the quarter, the company reported fixed assets written off of MYR 0.1 million. Price Target Changed • Aug 23
Price target decreased by 8.7% to RM1.51 Down from RM1.65, the current price target is an average from 8 analysts. New target price is 33% above last closing price of RM1.13. Stock is down 20% over the past year. The company is forecast to post earnings per share of RM0.093 for next year compared to RM0.079 last year. Announcement • Jun 24
Aeon Co. (M) Bhd. Announces Resignation of Grace Lee Hwee Ling as Chief Financial Officer Aeon Co. (M) Bhd. announced Resignation of Dr Grace Lee Hwee Ling, age 47 as Chief Financial Officer. Accounting Certified Practising Accountant Australia & Association of International Certified Professional Accountants Australian Fellow of Certified Practising Accountant (Fcpa Aust.) & International Certified Professional Accountant (ICPA) Information System & Governance of Enterprise Information Technology Information Systems Audit and Control Association Certified Information Systems Auditor (Cisa, Us) & Certified in the Governance of Enterprise It (Cgeit, Us) Business Administration Elm-Graduate School - Help University Business Administration Charles Sturt University, Australia Accounting and Finance Curtin University, Australia. Upcoming Dividend • May 23
Upcoming dividend of RM0.04 per share at 3.0% yield Eligible shareholders must have bought the stock before 30 May 2023. Payment date: 15 June 2023. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Malaysian dividend payers (5.3%). Higher than average of industry peers (1.9%). Reported Earnings • May 19
First quarter 2023 earnings released: EPS: RM0.027 (vs RM0.02 in 1Q 2022) First quarter 2023 results: EPS: RM0.027 (up from RM0.02 in 1Q 2022). Revenue: RM1.11b (up 11% from 1Q 2022). Net income: RM38.2m (up 36% from 1Q 2022). Profit margin: 3.5% (up from 2.8% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.0% p.a. on average during the next 3 years, compared to a 8.4% growth forecast for the Consumer Retailing industry in Asia. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Apr 20
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: RM0.079 (up from RM0.061 in FY 2021). Revenue: RM4.14b (up 14% from FY 2021). Net income: RM111.2m (up 30% from FY 2021). Profit margin: 2.7% (up from 2.3% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Consumer Retailing industry in Asia. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Board Change • Mar 03
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Zaida Khalida Shaari was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 23
Full year 2022 earnings released: EPS: RM0.079 (vs RM0.061 in FY 2021) Full year 2022 results: EPS: RM0.079 (up from RM0.061 in FY 2021). Revenue: RM4.14b (up 14% from FY 2021). Net income: RM111.2m (up 30% from FY 2021). Profit margin: 2.7% (up from 2.3% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 7.6% growth forecast for the Multiline Retail industry in Asia. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 24
Third quarter 2022 earnings released: EPS: RM0.008 (vs RM0.013 loss in 3Q 2021) Third quarter 2022 results: EPS: RM0.008 (up from RM0.013 loss in 3Q 2021). Revenue: RM982.0m (up 31% from 3Q 2021). Net income: RM10.9m (up RM29.6m from 3Q 2021). Profit margin: 1.1% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Multiline Retail industry in Asia. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 25
Second quarter 2022 earnings released: EPS: RM0.034 (vs RM0.008 in 2Q 2021) Second quarter 2022 results: EPS: RM0.034 (up from RM0.008 in 2Q 2021). Revenue: RM1.10b (up 25% from 2Q 2021). Net income: RM47.3m (up 334% from 2Q 2021). Profit margin: 4.3% (up from 1.2% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 10%, compared to a 42% growth forecast for the Multiline Retail industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Major Estimate Revision • Aug 24
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from RM0.08 to RM0.09. Revenue forecast unchanged at RM4.18b. Net income forecast to grow 26% next year vs 8.6% growth forecast for Multiline Retail industry in Malaysia. Consensus price target up from RM1.68 to RM1.76. Share price fell 2.7% to RM1.42 over the past week. Announcement • Aug 24
Aeon Co. (M) Bhd. Reports Fixed Assets Written Off for the Second Quarter Ended June 30, 2022 Aeon Co. (M) Bhd. reported Fixed assets written off for the second quarter ended June 30, 2022. For the quarter, the company reported Fixed assets written off of MYR 0.5 million. Board Change • Jul 15
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 3 highly experienced directors. Non Independent & Non Executive Director Swee Ying Chong was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model.