News Aeon has entered into a joint development and sale
and purchase agreement with Lebar Daun Development S/B and Perbadanan Kemajuan Negeri
Selangor (“PKNS”) on a piece of vacant land held in Bandar Shah Alam that
measuring approximately 7.602 hectare or 818,273.2 square feet at the purchase
price of RM90m.
The purpose of the
proposed land acquisition is to construct and operate a shopping centre and a departmental
store cum supermarket.
The amount of the
acquisition is based on the rate of RM110 per sq ft on an estimated area of 818,273.2
sq ft of the Sale Property after considering the valuation carried out by the company’s
valuer, VPC Alliance (KL) Sdn Bhd.
The acquisition will
be fully funded by cash and internal generated funds.
The company will not
be assuming any liabilities including contingent liabilities and guarantees pursuant
to the acquisition.
Comments We
understand the key rationale of the proposed acquisition is to accelerate the
expansion of its retail business through opening of new shopping centres and
outlets.
While we believe the
upcoming new store on the newly acquired land will enhance its retail business
going forward, we have yet to impute the potential earnings' impact into our
financial model for conservative purpose.
The proposed land
acquisition cost of RM90m via internal fund is not a concern to us judging the group
has recorded a strong cash position of RM343m as of 9M12.
Outlook Outlook remains neutral as the group may potential
affected by the global economy weakness despite Aeon continues to expand its outlet
network in the next three years.
Forecast Maintain FY12-13E net profit at
RM223.2mRM251.8m.
Rating MAINTAIN UNDERPERFORM
We believe the
company will maintain its 3% SSSG (Same Store Sales Growth) rate in FY13, a similar
pace that targeted to record in FY12.
Valuation Maintain TP of RM11.30, based on FY13E PER of 15.8x
(+2SD from its historical 5-year mean).
Risks Delay
in expansion of new outlets.
Weakness in global
economy uncertainties.
Source: Kenanga
This comment has been removed by the author.
ReplyDelete