Aeon Co. (M) Bhd may trend higher after it broke above the RM1.48 resistance and hit a new 52-week high of RM1.54 on Aug 21. Just about a year ago, the counter was trading at a low of RM1.02. Year-to-date, Aeon has surged almost 30% to close at RM1.52 on Aug 21.
Aeon has been actively working on several initiatives this year. It is focusing on revitalising its retail spaces, with renovations nearing completion at AEON IOI Puchong, expected by the end of August.
It will also complete facelifts at AEON Bukit Indah and AEON Tebrau City by the fourth quarter this year. These efforts are expected to boost sales by 15% to 20% year-on-year.
Additionally, AEON is maintaining strong mall occupancy and rental renewal rates, supported by ongoing promotional campaigns for its 40th anniversary.
Analysts have a generally positive outlook on AEON. Maybank Investment Bank has set a target price of RM1.74 and maintained a "buy" recommendation.
It noted that while 2Q24 retail sales may be softer due to the lack of festive events, the company has shown improved sales momentum across various categories.
Analysts are also optimistic about AEON's store renovation efforts, which are expected to enhance sales by 15% to 20% year-on-year following these upgrades.
Aeon reported strong financial performance for the first quarter of 2024, ending on March 31. The company achieved a net profit of RM57.5 million, marking a significant 51% increase from RM38.2 million a year ago.
This surge in profit was driven by robust performance in both the retail and property management segments. The company’s revenue also grew to RM1.17 billion, up from RM1.11 billion in the previous year, with the retail segment contributing RM980.5 million, largely thanks to increased festive spending.
The property management services segment saw a 13% increase in revenue, reaching RM186.9 million, supported by better occupancy rates and effective rental renewals, particularly in rejuvenated malls.
However, RHB Research has maintained a neutral call on the counter with new RM1.35 target price from RM1.26 previously. It remains cautious about Aeon’s prospects due to increasing competition from neighbourhood and niche grocery stores, and an oversupply of retail space.
Overall, Aeon’s positive results reflect effective cost management and strategic focus on enhancing customer experience and digital transformation, continue to draw investors in.
Created by zaclim | Sep 12, 2024
Manufacturer of semiconductor components, D&O Green Technologies Bhd is experiencing a positive momentum after trading at a low of RM1.98. Can the uptrend sustain?
Created by zaclim | Sep 11, 2024
CCK Consolidated Bhd was the standout performer among its poultry peers, rising some 122% over the past year. Having seen a great run, can it sustain the upward trend?
Created by zaclim | Sep 04, 2024
Maybulk Bhd reported higher net loss in 2QFY24 but signs point to positive share price momentum in the near term. Is it time to start buying?
Created by zaclim | Sep 02, 2024
Ecomate Holdings Bhd managed to touch its year high of 90 sen recently, a level last seen in May. Could this signal to a continued surge upwards?
Created by zaclim | Sep 02, 2024
Hup Seng Industries Bhd has done well to touch a year high of RM1.33 in July but lost some ground subsequently. However, the counter appears to be continuing its uptrend recently. Can it sustain?
Created by zaclim | Aug 29, 2024
AirAsia X Bhd is still not out of the woods but is seeing a rebound after its share price rose to a high of RM1.35 recently. Can it continue to fly higher?
Created by zaclim | Aug 28, 2024
Cuscapi Bhd has gained 50% in terms of value year-to-date and signs indicate that the good run still has legs.
Created by zaclim | Aug 27, 2024
After a turnaround in its financials, Pesona Metro Holdings Bhd has been attracting investors’ interest especially after bagging 4 contracts in a year. Will its good run in share price be sustainable?
Created by zaclim | Aug 26, 2024
Able Global Bhd has been surging in recent weeks although still shy of its 52-week high seen in June. Will the counter be able to reach its high?
Created by zaclim | Aug 26, 2024
Johor Plantations Group Bhd may not have performed as well as other listings this year but signs indicate the counter might trend higher