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Aeon Co Bhd is expected to report a strong quarter, driven by increased sales during the festive season and higher foot traffic. This is likely to result in growth for the company, and we maintain our “buy” call with a target price of RM1.68.
The festive season is a key period for retailers, and Aeon is expected to benefit from higher consumer spending during this time. This is supported by the recent easing of COVID-19 restrictions, which has led to increased foot traffic in shopping malls. As a major retail player in Malaysia, Aeon is well-positioned to capitalize on this trend.
In addition, Aeon has been implementing various initiatives to drive growth, such as expanding its e-commerce platform and introducing new products and services. These efforts are expected to contribute to the company’s overall performance in the coming quarters.
We believe that Aeon’s strong brand presence and wide range of offerings will continue to attract customers, and its focus on cost management will help improve margins. Furthermore, the company’s recent partnership with Grab to offer online grocery delivery services is a positive development that could potentially boost sales.
Overall, we remain positive on Aeon’s prospects and maintain our target price of RM1.68. However, downside risks include a potential slowdown in consumer spending and a delay in the recovery of foot traffic due to the ongoing pandemic. On the other hand, potential catalysts for the stock include stronger-than-expected sales and continued growth in its e-commerce segment.