Assuming we take the highest EPS in Q4, annual EPS will be only 4-5cents. Even at current price 1.00 the PE is 20. I believe the picture has changed due to the MCO 2.0, 3.0, 4.0.
Hong Leng IB Research: "Despite the short term uncertainties, we reckon Aeon will be able to brace through another storm with their clear strategy to chart for recovery. We came away from our meeting with Aeon’s management feeling hopeful about the group’s long term prospects despite short term headwinds."
By the way, I was at AEON maluri and there were LONG queues almost any past days i went.... This is an indicator of GOOD business...Comparing to other supermarket which has no queue
Everyone knows shopping mall is a sunset business. Everyone also agree that e-commerce is booming (eg. Shopee, Lazada etc) and growing every year and eating into their pie. The share price or valuation even shows it. Shopping center is in downtrend for years and probably will.
Please note , NO one is saying shopping center will be GONE forever. NO one is saying Aeon will close shop for good. Yes they still have assets which what you guys are hoping for. Growth... definitely no. If want to bet on malls and its asset, better buying into REITS. Just my opinion.
No way supermarket is sunset business.... E-commerce boom is JUST temporary at current time due to MCO etc. And E-commerce business growth may NOT be sustainable Post Covid..
Malaysian being Malaysians still like to go OUT especially Malls... Hence, there is the substantial PENT-UP DEMAND to go out (i.e. to MALL, etc). ALSO Don't forget AEON also into online business... So they are adapting well to this situation...
Agreed, I never buy foods, clothes or anything over RM100 from e-commerce. Most of time you will regret buying from e-commerce. Flooded with so many irresponsible unpolite sellers. Wasting time for return policy and frustration. They would never earned trust or faith than grabbing what you want with your eyes.
After covid, many ppl would have adapted to shopping online due to the discounts, choices and convenience. However, this is mainly applicable to consumer products other than groceries. I believe many if not all of us still prefer to go groceries shopping in-person as we can see and feel the veges and fruits we're about to buy. Online shopping for groceries take this away from us.
As for the shops operating in Aeon, many would have closed down and moved online or closed forever. However, there'll still be tenants wanting to take up the space i.e. restaurants, communications, cinema etc.
Aeons will have both online and offline market advantages...
Aeon ups digital ambition with Boxed Wholesale tie-up
KUALA LUMPUR (Jan 28): Aeon Co (M) Bhd has announced a partnership with US-based Boxed Wholesale that will see the retailer utilising the e-commerce company’s state-of-the-art technology to accelerate Aeon’s expansion into new retail offerings.
Boxed will be supporting Aeon in its efforts to expand into business-to-business ventures and new retail solutions via Aeon’s virtual mall. The platform is expected to support Aeon’s 4,000 tenants in its malls throughout the country.
In a joint press statement released by the two companies, they announced that Aeon will be utilising Boxed Wholesale’s proprietary storefront platform and inventory-picking software, including click-and-collect services from selected Aeon stores.
Aeon Malaysia’s chief executive officer Shafie Shamsuddin in the statement today said that the tie-up will bring about a wholesome customer experience by bridging its more than 1.3 million customers from offline to the online space.
“We are confident that we can bring in quality tenants and merchants, as proven in our brick and mortar business, into our virtual mall,” said Shafie.
He added that Boxed Wholesale is one of the few e-commerce companies in the world that built entrepreneurial value in the company by running its own consumer business using its own technology.
The virtual mall is expected to be rolled out in 2Q2021.
“The ability for an enterprise customer to make just one call to modernize their digital and physical e-commerce capabilities is truly rare. To do it with low capital expenditure is even rarer.
We are beyond excited to bring our technology to retailers around the world and help them succeed in today’s competitive market,” said Boxed Wholesale chief executive officer Chieh Huang.
Boxed Wholesale is an e-commerce platform that was established in 2013, and has an annual turnover of more than US$500 million. It is an online bulk-product retailer that brings the wholesale shopping experience to customers through direct-to-their-door access to warehouse club products.
Partnership with Boxed is good news. First, they can tap into B2B, utilising Boxed’s infrastructure by selling to enterprises and even large families. Second, they can ramp-up the development of AEON’s virtual mall that caters not only for AEON’s retail business but also for its 4,000 tenants. In essence, this partnership is a game changer to AEON into their virtual mall and B2B market. Boxed is very credible, with proven business model in this area.
Covid creates a lot of headwinds to AEON, especially on the reduced rents collected from all its assets and reduction in footfall especially during CNY festive season. But AEON being the biggest retailer doesn’t wait but rather keep innovating and forged strategic partnership to grow its businesses. AEON has proven that its businesses will continue to grow once the dust is settled.
PETALING JAYA: Aeon Co (M) Bhd is aiming for its new digital shopping platforms to contribute 15% to 20% of its retail revenue over the next five years, according to chief executive officer Shafie Shamsuddin.
Not hard to verify how successful their digital shopping platform is. As a shareholder did you try? Otherwise, go check physically lor. Engagement is less than 10%.
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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....
StockisntFun
246 posts
Posted by StockisntFun > 2021-01-12 01:02 | Report Abuse
I think need to see mood of EPF, if they no enough money to let rakyat withdraw I-sinar, some bad luck stock will be sold and exchange cash.