KUALA LUMPUR (April 10): RHB Research Institute Sdn Bhd has upgraded Aeon Co (M) Bhd to Market Perform and raised its fair value to RM10.40(from RM8.90 previously) and said Aeon expects to open another outlet in Dec 2012 in Sri Manjung.
In a note Tuesday, RHB Research said the mall would be leased from the developer and have total net lettable area of 400k sq ft.
“Further ahead, we understand that Aeon has plans to open one mall in 2013, although no details on location were given. In 2014, Aeon expects to open three new malls, i.e. Kulai, Sg. Petani and Bukit Mertajam.
“For its retail operations, which include department store and supermarket sales, AEON expects its Same Store Sales (SSS) growth to be approximately 4% for FY12, higher than our estimates of 2-3% for FY12-14,” it said.
The research house said that moving forward, Aeon’s management expects profit before tax for its property management service to be sustained at FY11 levels of RM120 milion-RM130 million, which RHB Research said was slightly higher than its current estimates of RM110 million-RM120 million for FY12-14.
“We raise our fair value to RM10.40 (from RM8.90) based on a new target PER of 16x FY12 EPS (from 14x FY12 EPS previously). We upgrade our call on the stock to Market Perform,” it said.
In a note Tuesday, RHB Research said the mall would be leased from the developer and have total net lettable area of 400k sq ft.
“Further ahead, we understand that Aeon has plans to open one mall in 2013, although no details on location were given. In 2014, Aeon expects to open three new malls, i.e. Kulai, Sg. Petani and Bukit Mertajam.
“For its retail operations, which include department store and supermarket sales, AEON expects its Same Store Sales (SSS) growth to be approximately 4% for FY12, higher than our estimates of 2-3% for FY12-14,” it said.
The research house said that moving forward, Aeon’s management expects profit before tax for its property management service to be sustained at FY11 levels of RM120 milion-RM130 million, which RHB Research said was slightly higher than its current estimates of RM110 million-RM120 million for FY12-14.
“We raise our fair value to RM10.40 (from RM8.90) based on a new target PER of 16x FY12 EPS (from 14x FY12 EPS previously). We upgrade our call on the stock to Market Perform,” it said.
