AEON’s 9MFY12 earnings were within consensus and our forecasts. Its revenue and core net profit grew 10.5% and 12.3% y-o-y respectively, driven by better numbers from its retail and property management divisions. Encouragingcontributions from its new/existing stores and aggressive members’ days promotions boosted retail sales; while the opening of new shopping malls, higher sales commission and rental rates propelled its property management income. We are keeping our FY12/FY13 forecasts at RM199.6m/RM225.6m respectively. Maintain NEUTRAL, with FV unchanged at RM10.28.
No surprises. AEON’s topline and core net profit (excluding net insurance gain of RM10.9m for 9MFY11) climbed 10.5% and 12.3% y-o-y to RM2,382.8m and RM127.2m respectively, underpinned by better performance at its retailing and property management services segments. Retail revenue grew 9.6% y-o-y on the back of contribution from new stores, higher sales from existing stores, as well as increasing sales days for loyalty card members. The group’s turnover from the property management services accelerated 16% y-o-y, largely attributed to the opening of new shopping centres, better sales commission, and higher rental rates arising from store revamps in its shopping centres. Vis-à-vis last quarter, revenue rose 11.3% to RM844.7m while earnings jumped 34.6% to RM51.4m.
Slight drop in margin. Weighed down by higher operating costs (including initial costs) from new stores operations, the group’s EBIT margin nudged down 10bps to 7.5%. A surge in operating expenses (+10.5%) toned down its healthy revenue growth.
Maintain NEUTRAL. We expect AEON’s 4Q performance to be well supported by the upcoming festive seasons of Christmas and New Year as well as school holidays. The group plans to open a two-level outlet in Sri Manjung, Perak with a net lettable area (NLA) of 477k sq ft in December this year, followed by another new mall in Kulai, Johor next year. In view of its strong fundamentals, prominent brandname and new stores expansion, we expect the company to continue delivering satisfactory results going forward. We are keeping our FY12/FY13 earnings forecasts untouched given its decent results. Maintain NEUTRAL, with a RM10.28 FV, based on 16x FY13 EPS.
No surprises. AEON’s topline and core net profit (excluding net insurance gain of RM10.9m for 9MFY11) climbed 10.5% and 12.3% y-o-y to RM2,382.8m and RM127.2m respectively, underpinned by better performance at its retailing and property management services segments. Retail revenue grew 9.6% y-o-y on the back of contribution from new stores, higher sales from existing stores, as well as increasing sales days for loyalty card members. The group’s turnover from the property management services accelerated 16% y-o-y, largely attributed to the opening of new shopping centres, better sales commission, and higher rental rates arising from store revamps in its shopping centres. Vis-à-vis last quarter, revenue rose 11.3% to RM844.7m while earnings jumped 34.6% to RM51.4m.
Slight drop in margin. Weighed down by higher operating costs (including initial costs) from new stores operations, the group’s EBIT margin nudged down 10bps to 7.5%. A surge in operating expenses (+10.5%) toned down its healthy revenue growth.
Maintain NEUTRAL. We expect AEON’s 4Q performance to be well supported by the upcoming festive seasons of Christmas and New Year as well as school holidays. The group plans to open a two-level outlet in Sri Manjung, Perak with a net lettable area (NLA) of 477k sq ft in December this year, followed by another new mall in Kulai, Johor next year. In view of its strong fundamentals, prominent brandname and new stores expansion, we expect the company to continue delivering satisfactory results going forward. We are keeping our FY12/FY13 earnings forecasts untouched given its decent results. Maintain NEUTRAL, with a RM10.28 FV, based on 16x FY13 EPS.
Source: OSK
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