FINANCIAL year 2025 (FY25) net profit for AEON Co. Bhd rose 4.5% year-on-year (YoY) despite relatively stable revenue of RM4.3 bil.
“The earnings growth was mainly driven by stronger earnings before interest and tax (EBIT) contribution from the property management segment, underpinned by effective rental renewals, an optimised tenant mix and stable occupancy rates,” said TA Securities.
This improvement helped offset the sharp decline in retail segment EBIT, which was pressured by higher operating costs arising from ongoing investments in store and mall upgrades.
However, after stripping out the one-off items (a RM22.6 mil one-off litigation claim incurred in the corresponding year), the group’s core profit would have declined by 10.9% year-on-year (YoY) in FY25.
Quarter-on-quarter, quarter four financial year 2025 (4QFY25) core profit surged more than tripled to RM50.5 mil, supported by a 5.4% increase in sales to RM1.0 bil.
The stronger performance was driven by higher spending and improved tenant sales during festive and year-end promotional period.
“Heading into 1QFY26, we expect the retail segment’s performance to remain resilient, supported by higher consumer spending and increased footfall during the festive season, particularly Chinese New Year and Hari Raya,” said TA.
Separately, TA expects the property management segment to remain stable in 1QFY26, supported by improved tenant sales on the back of a better tenant mix, as well as enhanced shopping experiences following the refurbishment of older malls and/or stores.
In addition, the reduction in SST on rental and leasing services is expected to provide cost relief to the group, further supporting earnings stability.
“We revised our TP to RM1.42/share and maintain Buy for AEON,” said TA. —Feb 27, 2025
Main image: Vulcan Post
