KUCHING: AEON Co (M) Bhd (AEON) a leading local retailer is expected to deliver better results in the fourth quarter of the previous financial year given the firmer consumer spending and seasonally strong quarter.OSK Research Sdn Bhd (OSK Research) in its research report yesterday noted that AEON was resilient during the economic crisis, chalking up revenue of 9.8 per cent and net profit of 2.7 per cent in the first nine months of the previous financial year.
It believed that AEON was on track to meet the earnings forecast of RM128.1 million for the previous financial year.
OSK Research said that the opening of the largest AEON Jusco Outlet in Malacca which was scheduled to open on 14 December last year, was postponed following a gas explosion. Though it was then to be opened on 21 December, this was later pushed closer to the Chinese New Year.
As a result of authority approval issues the opening of its Bandar Sri Permaisuri mall has also been delayed. The research house speculated that the opening of Bandar Sri Permaisuri will be in 2011.
The research firm believed that though the slow down in growth will be inevitable following a few new outlet openings, the next two years’ revenue growth would be generated by the young outlets which will have matured by then.
Meanwhile, AEON was finalising talks with See Hoy Chan Sdn Bhd (SHC) on a leasing agreement. OSK Research confirmed that AEON will still be the mall’s anchor tenant, likely to manage part of the tenant area of One U’s phase 1.
The report further added that AEON’s move to Vietnam was progressing well with the group expected to officially enter the Vietnam market by 2012.
Based on this, OSK trimmed down its financial forecasts for 2011/2012 by 2.8 per cent to 3.2 per cent and pegged a higher target price of RM5.15 for the company’s shares.