Published: Monday December 31, 2012 MYT 9:09:00 AM
Updated: Monday December 31, 2012 MYT 11:29:45 AM
Affin Research maintains Reduce rating on Aeon
KUALA LUMPUR: Affin Investment Research maintains its Reduce rating on Aeon Co. (M) Bhd and target price of RM10.30 pegged to an unchanged price-to-earnings ratio of 17 times CY13 earnings ratio (PER) of 17 times 2012 earnings per share.
It said on Monday although it is positive on the group's prospects due to its sound expansion plans; healthy domestic consumer spending spurred by the government's handouts and steady growth in its property management division with healthy rentals and resilient growth in tenancy, the sharp year-to-date share price appreciation of more 75% has pushed valuations to an unjustifiable high level.
“The stock is currently trading at 20 times FY13 PER with a dividend yield of just 1.3%. We maintain our Reduce rating on the stock and TP of RM10.30 pegged to an unchanged PER of 17 times CY13 EPS,” it said.