Quarter one 2023 revenue grew 11% year-on-year on stronger retail sales (+10% YoY) during the Chinese New Year period, and higher occupancy rate for the property management segment.
AEON’s quarter one 2023 results slightly overshot MIBB’s expectations on higher-than-expected retail segment sales. MIBB expects earnings momentum to continue into quarter two 2023 on the back of Aidilfitri spending but to moderate into quarter three 2023 as consumer spending normalises in absence of festivities.
“AEON’s quarter one 2023 core net profit of RM40 million reflected 28%/29% of ours and consensus full-year earnings estimates. The beat was predominantly due to higher retail segment sales contribution,” said MIBB in a recent report.
Quarter one 2023 revenue grew 11% year-on-year on stronger retail sales during the Chinese New Year period, and higher occupancy rate for the property management segment. Earnings before interest and tax however reported flattish growth year-on-year as both core segment margins weakened.
That said, quarter one 2023 pre-tax profit grew 13% year-on-year despite higher operating costs given lower interest expense by 25% year-on-year. Quarter-on-quarter, higher revenue growth was mainly from better festive retail sales and positive rental rate renewals.
“Although the Hari Raya Aidilfitri celebrations are expected to spur earnings growth momentum in quarter two 2023, we believe this could be moderated by weaker consumer spending in sequential quarters given ongoing cost inflationary pressures and weak consumer sentiment. We keep our earnings estimates for now pending results briefing today,” said MIBB.
