With the recent allowances to reopen non-essential businesses, Aeon Co (M) Bhd’s (Aeon) softline and hardline categories are expected to boost retail segment earnings contribution in sequential quarters.
The research arm of Maybank Investment Bank Bhd’s (Maybank IB Research) gathered that foodline accounts for circa 60 per cent, compared to 53 per cent in the first quarter of 2021 (1Q21), of Aeon’s retail segment while softline and hardline contributions have fallen four per cent to five per cent percentage points (ppts) quarter on quarter (q-o-q) given its closure during the lockdowns in 2Q21.
“Meanwhile, in partnership with BOXED, Aeon has launched its new online grocery website ‘myAeon2go’, in line with its digital transformation plans to achieve 15 per cent e-commerce sales revenue share within five years,” Maybank IB Research said.
“For now, its website will only include grocery items but management plans to include items from its softline and hardline segments in the future.” On occupancy rates, Maybank IB Research highlighted that property management services segment should also experience higher rental revenues given the change in its tenants’ rental structure towards higher sales-based variable rent.
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