1

AEON Co. (M) Berhad

Date: 22th July 2014 Current Price: 4.030
Todays change: +0.07 (1.77%) Recommendation: Buy
Table 1.0: Market Profile
Days Range 3.96 4.05
4 Weeks Range 3.92 - 4.33
52 Weeks Range 3.67 - 16.20
Trading Volume 732800
Average Volume (4 weeks) 1,148,431
High 4.050
Low 3.960
Price Target +8.18
Average Price Target 12.21
Market Cap 5.7B
Dividend 0.06
Dividend Yield 1.36%
Earnings Per Share EPS (cents) 16.15
Per Earning Ratio 24.95
Par Value 0.500
Source: Bursa Malysia, i3invester, Bloomberg Businessweek and Malaysiastock,
(2014).
Figure 1.0: Daily graph - 22
nd
July 2014

Source: i3invester, (2014)
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Figure 1.2: Yearly graph (March 2013 July 2014)

Source: Bursa Malaysia, 2014.
As Figure 1.2, the current market share price is RM4.030 in July. There were a drastic
drop of the share price of RM15.000 in May and in June the market share price was
RM3.900. This was due to liquidation of the companys share which is good for long
term by increasing the share volume in the market. As in May, the volume of shares
was around 1000 and increased to appropriate 4000 in July.


1.0 Highlights
Financial Review
AEON Co. (M) Bhd financial year end of 31
st
December 2013 had achieved a
record revenue of RM3.514 billion which is 7.9% higher compared to 2012 of
RM3.256 billion (AEON Co. (M) Berhad, 2013).
Profit after tax is RM231.0 million which is a 8.5% growth over 2012
performance (AEON Co. (M) Berhad, 2013).
Their financial position remains healthy by not having any borrowing at 31
st

December 2014 and a new assets value per share of RM4.68 which 2012 was
RM4.19 (AEON Co. (M) Berhad, 2013).


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Acquirement of lands
Agreement with Genting Property Sdn Bhd of one piece of freehold land for
shopping mall development at Mukim Simpang Kanan, Batu Pahat, Johor on
10
th
July 2014 (Kenanga, 2014).
This acquisition is fully satisfied by cash and funded by internally generated
funds and would provide AEON the opportunity to expand their presence in
Batu Pahat, Johor (Kenanga, 2014).
Viewed as positive in long term and in companys future prospects (TA
Securities, 2014).
Future Expansion
New Outlets in MaxValu stores in smaller town such as Bukit Mertajam in
Penang, Taiping in Perak, Klebang in Melaka and in East Malaysia (Kenanga,
2014).
New outlet from new venture with Thailands furniture company located in
Shah Alam by 2015 (TA Securities, 2014).
Joint Venture
Joint Venture with Thailands Index Living Mall Company Ltd to make foray
into the home and office furniture market on September 2013 (TA Securities,
2014). Positive new earnings and diversification into new business territories
Team up
AEON BIG (M) Sdn Bhd, branded hypermarket is planning to team up AEON
Co (M) Bhd in 2016 to open shopping centres for grabbing a bigger market
(Ganesan, 2014).
Risk
Caution on GST that will be implemented beginning April in 2015 that there
will be a fluctuation in consumption volume before and post implementation
of this GST (TA Securities, 2014).
The increase and rise of foreign retailor to enter as competitors against AEON
Co. (M) Bhd such as Tesco that announced they will be adding 3 more stores
that in total of 52 outlets in Malysia (TA Securities, 2014).
Expected a lower spending power outside of Klang Valley (TA Securities,
2014).
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2.0 Company and Industry Overview
AEON Co.,Ltd was first founded by Sozaemon Okada in 1758. Sozaemon Okada
launched Shinoharaya in Yokkaichi and starts their business in kimono fabrics and
accessories (AEON, 2014). AEON Co., Ltd is the holding company of AEON Group
and now is ranked the largest retailer in Asia. AEON is headquarters in Chiba, Japan
and the main industry for AEON Group is retailing.
Okadaya Co. Ltd. has longest pedigree which was built in 1758. Until World War II,
it is starts dealing clothing, including kimonos. After the war, it was restarted by
Takuya Okada built-in single-site devastated buildings and only hired five employees.
It grows into a chain of 14 stores in Mie Prefecture, but it is still consider as a big
amount in the late 1960s.
Many specialty chains are launched by AEON including The Body Shop and Laura
Ashley stores in Japan. AEON has a joint venture in Japan and also operates Sports
Bureau HapYcom which is the Japan's leading drugstore chains. Other activities
include shopping center development and financial services. It operates AEON and
Jusco chains of merchandise stores and Japan supermarket chain stores. Due to the
popularity and good brands image for the company, they can expand their business to
China and other Asian country (Hoover, 2014). The company has launched wide
variety of consumer product stores. For example, general merchandise stores (GMSs),
supermarket, convenience stores, department stores, specialty stores, discount stores,
drug stores, finance services, food stores and so on.
AEON is the leading retailer in Malaysia with total revenue of RM 3.26 billion for the
financial year ended 31 December 2012 (aeonretail, 2014). The company is
incorporated on 15 September 1984 with the company mission international-scale
retailing group which mean that not excellence only in Japan, but also in others
nations. We are trying to achieve international recognition in terms of size, growth
and profitability. They hope to be success in intangible aspects, such as customer
satisfaction and corporate social responsibility worldwide. They also agrees on
"quality management" concept in order to further enhance their capabilities. Other
than that, the vision is to build a strong competitive position and achieve continuous
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growth. Another vision is AEON member rely on customer first which need to meet
customer expectation. Therefore, are able to raise more further expectation.
There are some competitors faced by the AEON Group such as Dairy Farm
International Holdings Limited, Isetan Company Ltd, Seven & I Holdings Co, Ltd and
The Seiyu Company. AEON owns about 19.9% of stake in Daiei and want to take
controls of Daiei which have many outlets in major cities such as Kanto Kansai areas
in order to expands the customer base and strengthen the business in big urban areas.
The company buys the share of Daiei from Marubeni Corporation which is the biggest
shareholders and hold largest stake in Daiei with 44.6%. This deal will make AEON
Group be the single dominant force in the nations supermarket business (fleshplaza,
2014). Aeon will renovate the old Daiei stores while expanding their own supply of
private-brand products. By bringing together the Aeon group and Daiei group, will
have beyond six trillion yen in sales will be born (Yuri, Kageyama, 2007). Motoya
Okada said that they are facing a difficult operating environment and an intense
competition.
For the future plan of AEON Group in Malaysia is to open three new outlets in
smaller towns by investing RM 700mil. Two of them will in the new shopping centre
in Bukit Mertajam, Penang and Taiping, Perak which AEON Group will launch (Liz
Lee, 2014). They also aimed to expand their business in Kedah, Kelantan,
Terengganu, Sabah and Sarawak for the next five years.

3.0 SWOT Analysis
As general, we have known that AEON is a big retail store is establishes at Japan, and
it has acquisition with Carrefour Malaysia form as JUSCO in Malaysia. Therefore,
their organization has a lot of chance to expansion their business. Although Nelson is
willing to take more risky in his investment, but the approach ways to help investors
make decision are do a lot of analysis, get more and more information related to
reduce the investment risk. Our group need to do some SWOT and industry analysis
before suggest AEON to Nelson. There are strength, weakness, opportunity and threat.

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3.0.1 Strength
Based on the information, we found that AEON has good reputation in the market.
They is the first company are getting new SMBC Environment Assessment Loan
product offered by SMBC in Malaysia. This can help AEON make enhancement for
companys future eco-management. AEON also makes a lot of Corporate Social
Responsibility activities, like reduce harmful effected to environment through their
business operation and initiative in various tree planting in Malaysia. This can help
the investor get positive future prospects on AEON share.
The other strength for AEON is the expansion and broad credit service, which is
included variety of the financial service like Easy payment scheme, insurance of
Credit Cards, Personal Financial Scheme and others. Their financial services are able
to meet customers need and expand their business not just a global retail business but
also global financial services group. The AEON Financial Service Co., Ltd. Japan
(AFSJ) is listed in the First Section of Tokyo Stock Exchange.
Based on the AEON Financial Annual Report for 2013, we can see the revenue after
tax is keep rising from year 2009 to 2013. There are RM48, 757,000 in year 2009 to
RM134, 126,000 in year 2013, which is more than double up within 5 years. Since,
AEON is keep develop and expand their business in future, their revenue will keep
rising and follow by the increasing of share price. The earning per share has increased
from 73.30 sen in year 2012 to 102.84 sen in years 2013. The dividend is recommend
by their Bard of Director is pay for 19.50 sen per share, and the payout ratio is 38.1%
of net the profit, which is higher by 42% from previous year as the dividend for year
2013. Nelson as an investor on AEON share will get great expected return in the
future.
3.0.2 Opportunity
Based on the forecast of Malaysian economic will growth, AEON has more
opportunities to sustain their business performance. AEON will continue to expand
their products schemes to highly fulfill the customers and merchants need, like e-
money and e-commerce solution. They also will to more focus on expansion the
equipment and asset financing to small businesses. AEON also want to expand their
network of branches and merchants to offering their product and service.
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Besides that, AEON also intends to enhance the card benefits in AEON Group
Shopping Center in Malaysia. They plan to launch e-money product able to use at
AEON. Some additional branches are plan to open in nationwide by AEON in 2014
will facilitate to higher customer services.
Based on the Kenanga Research, we know that AEON has a Sale and Purchase
Agreements with Johor Land Berhad to acquisition a freehold land with Building-
Commercial Shopping Centre. The key purpose of this agreement is to accelerate the
expansion of the retail business through opening new shopping center and outlets. It is
also an opportunity for AEON to expand its presence in the growing area of Kempas,
Johor. Therefore we believe that the new mall will help AEON to enhance their retail
business going forward. There are more and more new outlet will openings in year
2014 like Bukit Mertajam. They also opened a first new AEON mall in Cambodia, to
supporting their rapidly growing per capital (GDP). It is a positive future prospect for
AEON Company. In additional, AEON also the only company in the Japanese retail
business sector to be awarded for excellent in climate change information disclose
two years running.
These kinds of implementation and development will help AEON get more
competitive advantage to stand strong in the marketplace for attracting more
customers and leading high sales. AEON is always awareness to understanding the
product value proposition and customer needs. It is able to get high performance of
customer service, strong brand name and great reputation for long term business
sustainability in the market. Therefore, we recommend Nelson can make investment
on AEON share.
3.0.3 Weaknesses
After that, besides the strength we had discussed on above, AEON has its own
weaknesses had been happened in the previous cases. After we had analyst AEON
Company we found that AEON had several limitation in the past, which are less stock
and capacity, weak management and customer service problems. There are the
problems in the internal control of AEON.
Firstly, AEON has encountered the complaint from their customers as staff attitude
problem. Customers are complaint about the staff attitude and behavior. AEON staff
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has lack of training and knowledge of serving the better way to their customers. A
portion of the staffs are even had the bad attitude on serving their customers. Besides
that, customers had complaint about the staffs lazy on working and provide service
very slow. There are slacking on their job and refuse to do their job. In additional,
staffs in JUSCO does not checking the products before selling, some of the products
does not states price tags and some of it do not update the price tags, the price tags
misleading customers to pay a wrong price on the products they had purchased.
Because of these factors that I had discussed on above, AEON had poor reputation
among customers.
Next problem is limited stock and capacity in their warehouse. AEON has many field
of business as well as many different industries. From the research we had found that,
AEON has involved in tea industry.
AEON has sold several types of tea; one of the examples is Dayou Fine Puer Tea.
Dayou Fine Puer Tea is the most popular and healthy green tea in the world. AEON
has provided a lot of Dayou Fine Puer Tea to their customers, it is one of the products
help the company AEON to generate profit and increase market share. However, there
is limited stock provided to their customers.
AEON has only supplier in China. There is limited stock to supply AEON. It is only
the source for Dayou Fine Puer Tea. In additional, AEON has a limited space and
capacity to store their stock. Therefore, AEON has limited Dayou Fine Puer Tea
provides to their customers. In order to resolve the problem and provide more stock to
AEON Company, the manufacturer of Dayou Fine Puer Tea is seeking for other
plantation of teas from other countries in the future.
3.0.4 Threats
Lastly, we had discussed about the AEON strength, weakness, opportunity on the
above. The next point is discussed about AEON threats strategy position in the market.
AEON is the largest merchandise stock and hypermarkets. AEON has integrated with
many companies doing business in a shopping complex. Besides that, AEON has
established a convenience store and grocery store inside the complex selling their
products.
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Although AEON is the largest hypermarket in the market, but there are a lot of
competitors in the market. AEON not only focuses one particular product to sell, but
it has many different products for sale in a shopping complex, thus it is very
competitive in the market. There are the threats that we had analyst in AEON market.
First, AEON has to compete with other hypermarkets. Before set up a business,
AEON has inventing huge money to set up a shopping complex before doing a
business. Besides that, they need to find many businesses involve in their shopping
complex. The way AEON doing a business, before setting up a business, they already
investing huge money. AEON need to manage well the shopping mall, they need to
adopting strategy to attract consumers. There is the high risk for AEON JUSCO to do
a business, because AEON needs to have a good management in order to avoid other
retailer move their business to AEONs competitors.
In additional, AEON has another threat had faced in the market. AEON is the largest
merchandise and hypermarket, many products that AEON selling in the hypermarket
and grocery convenience is almost similar to other retail shop in a complex or outside
the complex. Thus, it is one of the threats that AEON JUSCO had faced in the market.
Although AEON had setting up a big shopping complex to attract consumers,
however it has the risk there. AEON also invite many retail shop in the shopping
complex, at the same time it has the threat because other retail shops have offered
similar products as AEON sold in the complex. Furthermore, AEON products are
wider rather other retail shops, in other word, other retail shops are selling particular
products only their price might be lower than AEON.
In order to overcome the second threat, AEON has to play the role of strategy in order
to attract more consumers, besides that, AEON also need to manage well its own
shopping mall, to attract more consumers to enter in the AEON shopping mall for
competing other hypermarket business.




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3.0 Ratio 2013 (RM000)
Liquidity
1. Current ratio = Current assets/ Current liabilities
= 937, 235/ 1,192,929
= 0.7857times
2. Quick ratio = Current assets- Inventory
Current liabilities
= 937, 235-372,834
1,192,929
= 0.4731 times
3. Net working capital to sales ratio= Current assests- Current liabilities
Sales
= 937, 235- 3,514,418
2,646,712
= -0.9737x
Profitability
1. Operating profit margin = Operating income = 326, 025
Net sales (Revenue) 3,514,418
= 0.09277x
2. Net profit margin = Net income = 1,248,094
Net sales (Revenue) 3,514,418
= 0.3551x
Activity
1. Total assets turnover = Sales = 3,514,418 =1.1633x
Total asset 3,020,820
2. Fixed assets turnover = Sales = 3,514,418 =1.6635x
Fixed asset 2,112,644

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Financial leverage
1. Debt ratio = Total liabilities = 1,377,183 = 0.4559x
Total assets 3,020,820
2. Total debt to assets ratio = Total debt =1,377,183
Total assets 3,020,820
= 0.4558x
3. Long-term debt to assets ratio = Long-term debt = 24,574
Total assets 3,020,820
= 0.008134x
4. Total debt to equity ratio = Total debt =1,377,183
Total shareholders equity 1,643,637
= 0.8378x
5. Equity multiplier = Total assets = 3,020,820
Shareholders' equity 1,643,637
= 1.83778x
6. Times-interest-coverage ratio = Earning before interest and taxes
Interest
= 3,514,418 = 10.7795x
326, 025
Shareholder ratios
1. Earning per share = Net income available to shareholder = 65.8sen
Number of shares outstanding
2. Dividends per share = Dividends paid to shareholders = 22sen
Number of shares outstanding
3. Price-earnings ratio = Market price per share = RM21.28
Earning per share



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Return ratios
1. Return on assets= Net income = 1,248,094 = 41.32%
Total assets 3,020,820
2. Return on equity = Net income = 14.05%
Shareholders equity
Ratio 2012
Liquidity
1. Current ratio = Current assets/ Current liabilities
= 908, 176/ 1, 352, 609
= 0.6714 times
2. Quick ratio = Current assets- Inventory
Current liabilities
= 908, 176- 460, 725
1, 352, 609
= 0.3308 times
3. Net working capital to sales ratio= Current assets- Current liabilities
Sales
= 908, 176 - 1, 352, 609 = -0.1679x
2,646,712

Profitability
1. Operating profit margin = Operating income = 292,259
Net sales (Revenue) 3,255,669
= 0.0897x
2. Net profit margin = Net income = 1,081,190
Net sales (Revenue) 3,255,669
= 0.3321x
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Activity
1. Total assets turnover = Sales = 3,255,669
Total asset 2,682,172
= 1.2138
2. Fixed assets turnover = Sales = 3,255,669
Fixed asset 1,744,937
= 1.8657x
Financial leverage
1. Debt ratio = Total liabilities = 1,213,117 = 0.4522x
Total assets 2,682,172
2. Total debt to assets ratio = Total debt = 1,213,117
Total assets 2,682,172
= 0.4522x
3. Long-term debt to assets ratio = Long-term debt = 20,188
Total assets 2,682,172
= 0.0075267x
4. Total debt to equity ratio = Total debt
Total shareholders equity
= 1,213,117
1,469,055
= 0.8257x
5. Equity multiplier = Total assets = 2,682,177
Shareholders' equity 1,469,055
= 1.8258
6. Times-interest-coverage ratio = Earning before interest and taxes
Interest
= ,255,669
292,259
=11.1397


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Shareholder ratios
1. Earning per share = Net income available to shareholder = 60.6sen
Number of shares outstanding
2. Dividends per share = Dividends paid to shareholders =18.25sen
Number of shares outstanding
3. Price-earnings ratio = Market price per share =RM23.30
Earning per share

Return ratios
1. Return on assets= Net income = 1.081,190
Total assets 2,682,172
= 40.31%
2. Return on equity = Net income = 14.49%
Shareholders equity
The financial ratio analysis tool is including supporting financial analysis
explanations, which management who havent been schooled in accounting to
understand the critical numbers driving their business.
In liquidity ratio, a company usually use current ratio to test their companys liquidity
by deriving the proportion of current assets to cover current liabilities. However,
quick ratio is more righty than current ratio because it excludes inventory and other
assets that more difficult transfer into cash. Therefore, a higher ratio means the
company have a more liquid current position. Compare 2013 and 2012, AEON have
more liquidity in 2013.
Profitability analysis is used to provide overall measure of a a company profitability.
Positive profit margin analysis interprets into positive investment quality. To a large
degree, it is the quality, and growth, of a company's earnings that drive its stock price.
AEON have higher profit margin in 2013 compare with 2012.
The activity ratio is used to measure the how productivity of a companys fixed assets
or total assets to generate its company sales. Same as liquidity ratio, the higher the
turnover rate, the better result. In 2013, AEON able to use both fixed and current
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assets to generate their sales. However in 2012, they only able use fixed assets to
generate sales which the fixed assets turnover( 1.8657) is higher than total assets
turnover(1.2138).
Debt ratio is the degree to which a company utilize borrowed money. The more debt
financing a company uses, the higher its financial leverage. The debts ratio compares
a companys debts to its assets which to gain idea as to the amount of leverage being
used by a company. In general, the higher the ratio, the higher risk the company is
considered to have taken on. Compare 2013 and 2012, Aeon have higher ration in
2013 which is considered higher risk in 2013.
Earning per share (EPS) serves as an sign of a companys profitability which is the
portion of a companys profit allocated to each outstanding share. In 2013, AEON
EPS is 65.8sen while 2012 is 60.6sen. Dividend per share(DPS) is the total dividends
paid for whole year for every ordinary share issued. The DPS in 2013 is 22sen and
2012 is 18.25sen. Price-earning ratio is a valuation of a companys current share price
compared to its per-share earning.
Return on assets (ROA) is a way to determine haw efficient the company used their
assets to generate earnings. Aeon had improvement which ROA from 2012 to 2013 is
40.31% to 41.32%. Return on equity (ROE) used to reveal how much profit a
company generate with the money shareholders have invested. Aeon had better
performance in 2012 which the ROE is 14.49%, however in 2013; AEON only got
14.05% return.







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5.0 Outlook, Prospect and Recommendation
According to the star business news online stats recently, AEON will increase
investment despite subdued sentiment. It shows that the giant Japanese retailer
(AEON) will set a target on this year 2014 to increase its investment (Khoo, 2014).
As Poh Ying Loo said in a recent interview, AEON will open three more outlets in
this year. These 3 of them will locate in Bukit Mertajam, Taiping and in Quill City,
Kuala Lumpur. Besides that, the other outlets will be under renovation and
refurbished. AEON will upgrade the rest of stores in the end of this year. Usually it
will help to strengthen their market position and market shares (Khoo, 2014).
Furthermore, AEON has found that there is the over quota limit on electricity in this
year among all the outlets, and there is the solution had been spoken to the public.
High electricity tariffs will impact on their revenue, and destroying natural
environment. In order to protect our environment, AEON has decided to minimize the
electric cost by using more power efficient devices such as using LED lighting and
installing escalator sensors (Khoo, 2014).
Meanwhile, AEON also plans to create an online shopping portal for the future. Their
aim is to expand their business segment into huge area. They target to earn the
additional revenue about RM 2 million within 2 years by the online shopping portal.
Besides that, AEON also establish their own website, they want to have digital
advertising told by Poh Ying Loo. Aeon know Malaysia market for advertisement is
an essential. In order to attract customers and expand new market, advertising method
could be the most useful method (Khoo, 2014).
AEON is anchor tenant at many places, such as Sunway, Bandar Utama, IOI Mall,
Queesbay and Mid Valley. These places basically is own by AEON. They manage to
lease or to let to other tenants. The cost of tenants for leasing the space in a whole
shopping centre can be generating huge profit. It also helps to grow the market share
price by generate the rental cost (Khoo, 2014).
Lastly, AEON plans to open the first furniture outlet in Puchong in the future. The
first furniture outlet called the Index Living Mall. The furniture outlet is a join
ventures company that AEON has about 70% owned to this company. The rest 30% is
17

owned by Thai-based Index Living Mall which is the largest furniture retailer in the
Thailand (Khoo, 2014).
For the information above, the executive Poh Ying Loo has shown the future plan of
Aeon. As we can see the information from the above, AEON is trying to expand
business segment. They want to generate the market share and dominant the
hypermarket in Malaysia. Besides that, the way Aeon plans for future is the pull up
the market share price. So, for my opinion, it is worth to invest in AEON before Aeon
achieved their future plan.
According to the analysis from Financial Times Ltd (2014), they get the forecasting
result among 6 polled investment analysts for AEON Mall Co. Ltd on 18 July 2014.
They make the consensus forecast about AEON company will outperform within the
market. The net income for AEON Mall Ltd has grew by year to year, which is
increase for 7.16% from 21.87 billion to 23.43 billion primarily through revenue
growth for 161.43 billion to 176.93 billion. The table below shows the revenue and
net income for AEON from year 2010 to 2014.






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Other than that, AEON also growth in dividends per share, which is increased 10.00%,
it is a positive trend in dividend payments. That is shows by the figure below.



Based on the figure above, we can clearly to know the beta for AEON is 1.12. The
beta value < 1.0 consider low risk, 1.12 consider have higher risk to buy their share.
However, Nelson are willing to take some risk, so that the beta of 1.12 consider not a
high risk taken. Therefore, we recommend Nelson to buy this share since AEON still
has a lot of future investment and development. It is also get the positive trends from
few analysts result. AEON share consider fulfill the need and purchase power of
Nelson.
AEON Co. (M) Bhd is planning to expand their presence to Kota Baru and to East
Malaysia, Kuching, Sarawak. They have already identified the location for the stores
and is already in the planning stage that estimated the construction stage will take
about two years to complete which will be in 2016.
This will be the first enter for AEON to East Malaysia and would be a great chance
for AEON to compete with its major competitor, Tesco. Furthermore, Tesco had
proposed to enter to East Malaysia in 2011which is much earlier than AEON (Kassim,
2011). However, currently Tesco still haven enter into East Malaysia which provides
a chance for AEON to be monopoly retailor in East Malaysia.
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Besides Giant, theres another huge hypermarket and retail chain in Malaysia. AEON
need a better strategy to compete against Giant in the retail industry.
AEON Co. (M) Bhd came out with a new strategy which is to team up with AEON
BIG (M) Sdn Bhd a branded hypermarket in Malaysia. The team up will house both
brands to expand and grab a bigger market share in Malaysia.
AEON Co. (M) Bhd caters more on middle and uppers income groups while AEON
BIG caters more on lower to middle incomes group of consumers. When these two
groups are located in a same shopping centre, this will eventually attract all levels
income of consumers. Thus, this will have a bigger pool of market shares. In addition
to strengthen the team up force, innovations in stores will be taken in mind by
introducing loyalty cards to help spur and increase in growth and competitive
advantage among rivals (Ganesan, 2014).












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6.0 Conclusion
Throughout the whole analysis for AEON Co. (M) Bhd, shows that this is a stable and
leading retail stores in Malaysia. From the financial point of view, there are
appropriate 732800 units of shares traded in Bursa Malaysia and with dividend yield
of 1.36 %.
Besides that, the company liquidity their shares of share price of 15.000 in May 2014
to 3.900 in June. The liquidation of share price had increased the volume of shares to
be traded in market. It is good for a long term investment where the share in the
market is in a stable condition.
In addition, there are several analysis showed that AEON is currently doing very well
in Malaysia such as the joint venture with Thailands Index Living Mall Company Ltd
was the first joint venture for AEON in this 10 years time. This joint venture has
engage in furniture business by providing unique design and high quality of furniture
and the 70:30 between AEON and ILM has paid up a capital of RM45 million
(Blemin, 2013).
Besides that, the acquirement of a freehold land from Genting Property Sdn Bhd for
their future expansion to Batu Pahat in Johor is one of the strength to support to invest
in this company due to fully satisfied by cash and funded by internally generated
funds. This shows that the company has a strong capital and asset which enable them
to invest the land fully by cash.
Lastly, a team up between AEON Co. (M) Bhd and AEON BIG will increase and
improve the market by attracting lower, middle and high income consumers. This will
eventually increase the share price of the company and make it a better company for
investment.
In conclusion, we would like to recommend AEON Co. (M) Bhd to Mr. Nelson Wong
to invest in this company where this company able to generate substantial returns in
desire for Mr. Nelson Wong to achieve their financial objectives.


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References
AEON Co. (M) Berhad. (2013). Annual Report 2013.
Blemin, C. (2013). AEON signs JV with Thai firm for furniture biz. Retrieved from
The Edge: http://www.theedgemalaysia.com/home/go-archive/117
business-a-markets-2013/255369-aeon-signs-jv-with-thai-firm-for
furniture-biz.html
Bloomberg Businessweek. (2014). Aeon Co (M) Bhd. Retrieved from Bloomberg
Businessweek:
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