[%rruf%]
Research by Kenanga
Underperform - TP RM1.21

"Bracing For A Soft 3Q"

AEON's 1HFY24 results were in line with our estimates but below the street's expectations. A weak 3Q is anticipated due to seasonal factors. While sustained elevated inflation is likely to continue constrain consumer spending, the upcoming
progressive pay rise for civil servants effective from December 2024 could offer some relief. We maintain our FY24-25F forecasts and TP of RM1.21 but downgrade the stock to UNDERPERFORM (from MARKET PERFORM previously) as the current share price has exceeded our valuation.

Analyst:
Cheow Ming Liang 
[%eKNL%]

$KLSE-AEON
Research by Kenanga
Underperform - TP RM1.21

"Bracing For A Soft 3Q"

AEON's 1HFY24 results were in line with our estimates but below the street's expectations. A weak 3Q is anticipated due to seasonal factors. While sustained elevated inflation is likely to continue constrain consumer spending, the upcoming
progressive pay rise for civil servants effective from December 2024 could offer some relief. We maintain our FY24-25F forecasts and TP of RM1.21 but downgrade the stock to UNDERPERFORM (from MARKET PERFORM previously) as the current share price has exceeded our valuation.

Analyst:
Cheow Ming Liang 
cheowml@kenanga.com.my