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Research by HLIB
Buy - TP RM1.82

"Impressive performance by PMS"

Aeon chalked in 1H24 core PAT of RM85.2m (+25% YoY) which best estimates at 57%/59% of our/street full year forecast. Overall retail sales eased off from the festive spending last quarter. PMS saw good results (+17% QoQ) which benefitted from the improvement in occupancy rate and rental rate renewal. Note that PMS formed the bulk of operating profit, averaging about 78% in the past three years. We increase our FY24 forecast by 7%. Reiterate BUY, with higher TP RM1.82 (from RM1.60) as we roll forward our valuation year to FY25 (from FY24) based on unchanged 15x PE multiple. We are confident with its sales trajectory and reckon that Aeon’s strategy would enable them to further benefit from recent government initiatives such as the third EPF account and civil servants pay hike.

Analyst:
Syifaa’ Mahsuri Ismail
[%YsYi%]

$KLSE-AEON
Research by HLIB
Buy - TP RM1.82

"Impressive performance by PMS"

Aeon chalked in 1H24 core PAT of RM85.2m (+25% YoY) which best estimates at 57%/59% of our/street full year forecast. Overall retail sales eased off from the festive spending last quarter. PMS saw good results (+17% QoQ) which benefitted from the improvement in occupancy rate and rental rate renewal. Note that PMS formed the bulk of operating profit, averaging about 78% in the past three years. We increase our FY24 forecast by 7%. Reiterate BUY, with higher TP RM1.82 (from RM1.60) as we roll forward our valuation year to FY25 (from FY24) based on unchanged 15x PE multiple. We are confident with its sales trajectory and reckon that Aeon’s strategy would enable them to further benefit from recent government initiatives such as the third EPF account and civil servants pay hike.

Analyst:
Syifaa’ Mahsuri Ismail
syifaa@hlib.hongleong.com.my