KUALA LUMPUR: MIDF Research is upbeat about Aeon Co.(M) Bhd's financial year 2023 outlook underpinned by its initiative in expanding various in-house private brand and labels at a competitive price.
This can help drive the sales volume in an inflationary environment.
MIDF Research said the optimism would also due to Aeon's effective cost efficiencies and operational productivity.
"Besides, we are optimistic that the group will benefit from the
increasing tourist traffic, particularly from China for out-of-home-consumption," it added.
MIDF Research reiterated its "Buy" with an unchanged target price of RM1.81.
The firm did not make any changes to its forecast pending analyst briefing.
"Our target price is based on a price earnings ratio (PER) valuation of 17.5 times, which is its two-year historical mean that is pegged to Aeon's FY23 earnings per share of 10.4 sen."
MIDF Research said Aeon was currently trading at a compelling FY23 PER of 13.3x versus its five-year average mean PER of 23x, while offering a dividend yield of 3.4 per cent in FY22.