For temporary Aeon will face profit down as they are expanding now so even their profit is using for expansion in future for new mall opening. But they are coming out for SUKUK to fund their capital expenditure in future so in future part of their profit will use for paying up the interest of fund for 10 years.
In long term they are in expansion mode since now... So dun worry...
Aeon Co (M) Bhd's net profit for the first quarter ended March 31, 2016 (1QFY16) fell 41.9% to RM28.7 million from RM49.4 million a year ago, due to lower margin, higher operating costs, interest expenses and initial costs associated with newly opened stores.
In a filing with Bursa Malaysia today, the group said revenue slipped 2.84% to RM1.08 billion from RM1.11 billion due to weaker consumer sentiments.
The group has allocated RM650 million in capital expenditure (capex) this year to open two outlets in Johor Bahru and Kuching and to refurbish its older retail outlets.
This year, the group plans to refocus its strategies to attract more customers and purchases with attractively priced goods and promotions, said Aeon Co managing director Nur Qamarina.
Its chairman Datuk Abdullah Mohd Yusof, meanwhile, admitted the group will have a challenging year ahead, with more competition vying for their market share.
I attended AGM of AEON on 19/5/2016. I heard only negative outbursts - poor quality customer service, lower revenue. Hope the new stores in JB and Kuching this year will contribute to higher revenue. I was not very impressed with explanations given by management and board directors. Probably a change in top management may help.Standard answers given to questions raised by MSWG.
Consumer spending habit has been shifted from conventional shopping to e-shopping. This is the trend as witness in China shopping malls. People prefer window shopping in the malls and buy online at much cheaper price. Be prepared for the wave of change.
Cancel all newly built Aeon is good for the market now as there is more than enough retail mall in the market. Wait consumer sentiment better then only expand their mall..
Foreign investors buy a lot on 22, 25 and 26th of july. Lowest of that day was RM2.60 - RM2.62. If they bought this low price now they have earn and prepare if they sell !
Mohd Sanusi - The quarter report is for the 3 months ended 30 Sept 2016. The theme park was only opened like end of last month (ie revenue will only be reflected in Q4). Moreover, Aeon only owns 20% (if I'm not mistaken) in Aeon Fantasy Malaysia (owner of the indoor theme park in Aeon Tebrau City). So contribution fr the theme park will be minimal.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Wei Jie Yau
5,418 posts
Posted by Wei Jie Yau > 2016-04-06 10:48 | Report Abuse
Haix , sell too early