phân tích SWOT công ty Aeon Mall

AEON Co (M) Berhad Date: 22th July 2014 Current Price: 4.030 Today’s change: +0.07 (1.77%) Recommendation: Buy Table 1.0: Market Profile Day’s Range Weeks Range 52 Weeks Range Trading Volume Average Volume (4 weeks) High Low Price Target Average Price Target Market Cap Dividend Dividend Yield Earnings Per Share EPS (cents) Per Earning Ratio Par Value 3.96 – 4.05 3.92 - 4.33 3.67 - 16.20 732800 1,148,431 4.050 3.960 +8.18 12.21 5.7B 0.06 1.36% 16.15 24.95 0.500 Source: Bursa Malysia, i3invester, Bloomberg Businessweek and Malaysiastock, (2014) Figure 1.0: Daily graph - 22nd July 2014 Source: i3invester, (2014) 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 company’s 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) 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 • 10th 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 company’s 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 Thailand’s furniture company located in Shah Alam by 2015 (TA Securities, 2014) Joint Venture • Joint Venture with Thailand’s 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 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) 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 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 nation’s 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 a lot of analysis, get more and more information related to reduce the investment risk Our group need to some SWOT and industry analysis before suggest AEON to Nelson There are strength, weakness, opportunity and threat 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 company’s 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 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 emoney 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 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 “BuildingCommercial 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 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 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 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 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 a business, because AEON needs to have a good management in order to avoid other retailer move their business to AEON’s 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 3.0 Ratio 2013 (RM’000) Liquidity Current ratio = Current assets/ Current liabilities = 937, 235/ 1,192,929 = 0.7857times Quick ratio = Current assets- Inventory Current liabilities = 937, 235-372,834 1,192,929 = 0.4731 times Net working capital to sales ratio= Current assests- Current liabilities Sales = 937, 235- 3,514,418 2,646,712 = -0.9737x Profitability Operating profit margin = Operating income Net sales (Revenue) Net profit margin = Net income Net sales (Revenue) = 326, 025 3,514,418 = 0.09277x = 1,248,094 3,514,418 = 0.3551x Activity Total assets turnover = Sales = 3,514,418 =1.1633x 3,020,820 = 3,514,418 =1.6635x 2,112,644 Total asset Fixed assets turnover = Sales Fixed asset Financial leverage Debt ratio = Total liabilities Total assets = 1,377,183 3,020,820 10 = 0.4559x Total debt to assets ratio = Total debt =1,377,183 Total assets 3,020,820 = 0.4558x Long-term debt to assets ratio = Long-term debt = 24,574 Total assets 3,020,820 = 0.008134x Total debt to equity ratio = Total debt =1,377,183 Total shareholders’ equity 1,643,637 = 0.8378x Equity multiplier = Total assets = 3,020,820 Shareholders' equity 1,643,637 = 1.83778x Times-interest-coverage ratio = Earning before interest and taxes Interest = 3,514,418 = 10.7795x 326, 025 Shareholder ratios Earning per share = Net income available to shareholder Number of shares outstanding Dividends per share = Dividends paid to shareholders Number of shares outstanding Price-earnings ratio = Market price per share Earning per share = 65.8sen = 22sen = RM21.28 Return ratios Return on assets= Net income = 1,248,094 = 41.32% Total assets 3,020,820 Return on equity = Net income = 14.05% Shareholders’ equity Ratio 2012 Liquidity Current ratio = Current assets/ Current liabilities 11 = 908, 176/ 1, 352, 609 = 0.6714 times Quick ratio = Current assets- Inventory Current liabilities = 908, 176- 460, 725 1, 352, 609 = 0.3308 times Net working capital to sales ratio= Current assets- Current liabilities Sales = 908, 176 - 1, 352, 609 = -0.1679x 2,646,712 Profitability Operating profit margin = Operating income = 292,259 Net sales (Revenue) 3,255,669 = 0.0897x Net profit margin = Net income = 1,081,190 Net sales (Revenue) 3,255,669 = 0.3321x Activity Total assets turnover = Fixed assets turnover = Sales Total asset Sales Fixed asset = 3,255,669 2,682,172 = 1.2138 = 3,255,669 1,744,937 = 1.8657x Financial leverage Debt ratio = Total liabilities = 1,213,117 Total assets 2,682,172 Total debt to assets ratio = Total debt Total assets = 0.4522x = 1,213,117 2,682,172 = 0.4522x Long-term debt to assets ratio = Long-term debt = 20,188 Total assets 2,682,172 12 = 0.0075267x Total debt to equity ratio = Total debt Total shareholders’ equity = 1,213,117 1,469,055 = 0.8257x Equity multiplier = Total assets = 2,682,177 Shareholders' equity 1,469,055 = 1.8258 Times-interest-coverage ratio = Earning before interest and taxes Interest = ,255,669 292,259 =11.1397 Shareholder ratios Earning per share = Net income available to shareholder = 60.6sen Number of shares outstanding Dividends per share = Dividends paid to shareholders =18.25sen Number of shares outstanding Price-earnings ratio = Market price per share =RM23.30 Earning per share Return ratios Return on assets= Net income = 1.081,190 2,682,172 = 40.31% Return on equity = Net income = 14.49% Shareholders’ equity Total assets The financial ratio analysis tool is including supporting financial analysis explanations, which management who haven’t been schooled in accounting to understand the critical numbers driving their business In liquidity ratio, a company usually use current ratio to test their company’s 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 13 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 company’s 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 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 company’s 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 company’s profitability which is the portion of a company’s 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 company’s 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 14 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 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 million within 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 15 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 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 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 16 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 17 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 Besides Giant, there’s 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 18 introducing loyalty cards to help spur and increase in growth and competitive advantage among rivals (Ganesan, 2014) 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 19 In addition, there are several analysis showed that AEON is currently doing very well in Malaysia such as the joint venture with Thailand’s 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 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-amarkets-2013/255369-aeon-signs-jv-with-thai-firm-for furniture-biz.html Bloomberg Businessweek (2014) Aeon Co (M) Bhd Retrieved from Bloomberg Businessweek: http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp ?ticker=AEON:MK 20 Bursa Malaysia (2014) Company Overveiw Retrieved from Bursa Malaysia: http://www.bursamalaysia.com/market/listed-companies/list-ofcompanies/plc-profile.html?stock_code=6599 Ganesan, V (2014) AEON looks at third Malaysian listing Retrieved from The Edge: http://www.theedgemalaysia.com/highlights/271188-highlight-aeonlooks-at-third-malaysian-listing.html i3investor (2014) Overview Retrieved from i3investor: http://klse.i3investor.com/quoteservlet.jsp?sa=ss&q=AEON Kassim, F (2011) Tesco mahu ke Sabah, Sarawak Retrieved from Utusan Online: http://www.utusan.com.my/utusan/info.asp? y=2011&dt=0429&sec=Korporat&pg=ko_03.htm Kenanga (2014) Land Acquisition for Expansion Quick Bites Khoo, D (2014) Aeon to increase investments despite subdued sentiment Retrieved from The Star Online: http://www.thestar.com.my/Business/BusinessNews/2014/05/26/Aeon-to-increase-investments-despite-subduedsentiment/ Malaysia Stock (2014) Stock Price Movement Retrieved from Malaysia Stock.Biz: http://www.malaysiastock.biz/Corporate-Infomation.aspx? type=A&value=A&securityCode=6599 Poh, Y.L (2014, May 26) The Star Online Business News Retrieved 19 July 2014 from http://www.thestar.com.my/Business/Business News/2014/05/26/Aeon-to-increase-investments-despite-subdued sentiment/ TA Securities (2014) Ascribing New Retail Space TA SECURITIES THE FINANCIAL TIMES LTD (2014) AEON Mall Co Ltd Retrieved 19 July 2014 from http://markets.ft.com/research//Markets/Tearsheets/Financials s=30632&subview=Overview&period=a 21 [...]... 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 company’s 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... 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... 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 14 5.0 Outlook, Prospect and Recommendation According to the star business news online stats recently, AEON. .. 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 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... liabilities However, quick ratio is more righty than current ratio because it excludes inventory and other 13 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... 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 Besides Giant, there’s 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)... with Thailand’s 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... http://www.malaysiastock.biz/Corporate-Infomation.aspx? type=A&value=A&securityCode=6599 Poh, Y.L (2014, May 26) The Star Online Business News Retrieved 19 July 2014 from http://www.thestar.com.my/Business/Business News/2014/05/26 /Aeon- to-increase-investments-despite-subdued sentiment/ TA Securities (2014) Ascribing New Retail Space TA SECURITIES THE FINANCIAL TIMES LTD (2014) AEON Mall Co Ltd Retrieved 19 July 2014 from... (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... 3,020,820 = 0.4558x Long-term debt to assets ratio = Long-term debt = 24,574 Total assets 3,020,820 = 0.008134x Total debt to equity ratio = Total debt =1,377,183 Total shareholders’ equity 1,643,637 = 0.8378x Equity multiplier = Total assets = 3,020,820 Shareholders' equity 1,643,637 = 1.83778x Times-interest-coverage ratio = Earning before interest and taxes Interest = 3,514,418 = 10.7795x 326, 025