AEON’s Southern region has become an increasingly important growth driver, with its contribution to group revenue expanding from 14.0% in 2021 to 20.1% in 2025.
The region’s performance has been supported by a portfolio of strategically positioned malls in Johor. AEON Permas Jaya and AEON Bukit Indah benefit from their close proximity to the Johor-Singapore Causeway, while AEON Kulaijaya enjoys a strategic location near Senai International Airport, allowing the group to capture both local and cross-border consumer demand.
According to TA Securities (TA)’s understanding, shoppers in the Southern region spend an average of about RM80 per transaction, significantly higher than the group’s overall average basket size of RM55.
This suggests stronger purchasing power and consumer spending in the region.
To strengthen its market position, AEON has also invested heavily in upgrading its retail assets over the past two years.
These refurbishment works are aimed at improving the overall shopping experience, attracting more visitors and encouraging higher customer spending.
AEON Tebrau City completed its refurbishment in 2024, followed by AEON Bukit Indah in 2025.
This year, the group’s refurbishment efforts are largely concentrated in Johor, with renovation works currently taking place at AEON Permas Jaya and AEON Taman Universiti. Both projects are expected to be completed by the fourth quarter of 2026.
Based on TA’s assessment of several refurbished outlets, sales have typically risen by around 15% year-on-year after reopening, highlighting the positive impact of these enhancement initiatives.
Looking further ahead, we believe AEON is well-positioned to expand its footprint in Johor as the state’s economic outlook remains favourable.
Johor posted the fastest GDP growth among all Malaysian states for a second consecutive year, recording 8.0% growth in 2025, which should continue to support consumer spending and retail activity.
AEON is poised to deliver a resilient performance in 2026, supported by modest margin expansion across both its property management services (PMS) and retail segments.
AEON’s first half performance is expected to remain strong, underpinned by favourable spending during the two major festive seasons; and lower refurbishment-related operating expenses compared with the previous year.
This is coupled with lower electricity costs, supported by AFA rebates during the early part of the first half of 2026.
“Hence, we maintain our BUY recommendation, supported by 22-Jul-26 the group’s expansion into urban lifestyle malls, improving retail performance and a resilient PMS segment,” said TA.—July 22, 2026
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