AEON Co., Weathering From Uncertainties
Solar Photovoltaic (PV) Panels installed in the open air parking lots of one of the Aeon Malls. (Photo credit - Aeon Malaysia)
RHB Research has maintained a 'BUY' rating on AEON Co M with a target price of RM1.75, citing the company's strong growth prospects in its property management segment and resilient retail performance. The research firm remains positive on AEON, supported by ongoing expansions and above-industry rental reversions driven by asset enhancement efforts.
AEON's retail segment is expected to deliver steady performance, underpinned by resilient consumer spending and margin expansion from cost-control initiatives. RHB Research believes that AEON's current valuation, which is -1SD below the mean, presents an attractive entry point for investors seeking domestic-centric exposure amidst heightened global market volatility.
RHB Research expects AEON to report a net profit of RM60-65 million for 1Q25, driven by stronger sales from the earlier timing of Aidil Fitri and margin expansion from cost initiatives.
The research firm believes that the declining global interest rate environment remains supportive of AEON's inorganic growth strategy. Backed by a deleveraged balance sheet, AEON is well-positioned to execute its planned expansions, including new malls at KL Mid Town (FY25) and Bandar Dato Onn (FY27). Related
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New Straits Times
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