Posted by vinvin > 5 days ago | Report Abuse

Any good news friends?

Posted by dragon328 > 5 days ago | Report Abuse

AEON is boosted up today with the huge buying into 99 Speed Mart, along with MR DIY.

AEON remains one of the cheapest retails stocks in Bursa with forward PER of just 12.9x, falling to 10x in 2025.

In comparison, 99 Speed Mart is trading at 33x forward PER and MRDIY at 26x forward PER.

Posted by klee > 5 days ago | Report Abuse

how to compare aeon with 99speedmart?
at close today,99speedy is ady among top 30 in terms of mkt cap on bursa
this coming dec,it will definitely be admitted as component stock

Posted by dragon328 > 5 days ago | Report Abuse

I don't think 99speedmart will be included as a KLCI component stock so soon.

99speedmart is just a retails company with large network of small retails outlets, even with some 2500 outlets, its revenue is just about double of AEON's revenue. AEON has 28 shopping malls and 35 supermarket outlets. The retails margin of 99speedmart is also razor thin at less than 5%, similar to AEON's level for its retailing segment. In terms of bottom line, 99speedmart's current PBT is about double of that of AEON inline with the topline.

In terms of EBITDA, both companies are on the same level, as higher depreciation charges drag down the pretax profit of AEON. But once AEON injects its shopping malls into a REIT, the depreciation line will disappear and AEON's PBT will increase by RM450m to over RM600 million, higher than 99speedmart.

Posted by dragon328 > 5 days ago | Report Abuse

To me, 99speedmart is overpriced at 34.9x FY2024 PER and 33x FY2025 PER for a growth of ~20% y-on-y. AEON has higher growth of over 20% in profits in FY2025.

As 99speedmart is newly listed, it is hotly traded. That reminds me of the earlier MyNews.com which had about 1,000 outlets when listed and analysts mostly projected high growth, but it all turned out to be just smoke.

When KK Mart gets listed later, investors will have a choice and simple comparison will erode any premium that 99speedmart may have now.

Posted by dragon328 > 4 days ago | Report Abuse

99speedmart may have liquidity premium as funds can buy in big quantities and it is convenient for foreign funds to park their hot money for a few weeks. But over time, reality kicks in and everything will be down to fundamentals and valuation.

Just look at MyNews and MRDIY. MyNews suffered some years of losses and share price has fallen to a penny stock. MRDIY shot up to skyhigh valuation of over 40x PER upon listing but has since come down to ground with a more reasonable PER of 20-26x.

Posted by dragon328 > 4 days ago | Report Abuse

AEON will have the liquidity once it declares bonus issues, and it will have sufficient retained earnings to declare 1-for-1 bonus by June 2025.

Posted by klee > 4 days ago | Report Abuse

whatever you say,aeon rose today cos of the spillover effect of speedy99
to you,aeon may be miss universe of retail,but to funds ,they have different idea n they buy the ideology of speedy99's Lee
on bursa,performance speaks,the rest is not important

Posted by dragon328 > 4 days ago | Report Abuse

time will tell. It will fall back to below 30x PER once the initial hype is over

Posted by DickyMe > 2 days ago | Report Abuse

80 sen coming rapidly!