AEON to benefit from new KL outlet, rising Johor revenue contribution — TA Securities

KUALA LUMPUR (July 22): TA Securities expects AEON Mall KL Midtown to contribute approximately 2% of AEON Co (M) Bhd's (KL:AEON) revenue for the financial year ending Dec 31, 2027 (FY2027), with an anticipated occupancy rate of 75%-80% upon opening in the last quarter of the year.

The house, which kept its 'buy' recommendation with a target price of RM1.42/share on AEON, said the mall has secured tenants such as Oriental Kopi and Sushiro.

"While the mall is expected to strengthen AEON’s long-term retail footprint and recurring rental income, we anticipate a meaningful earnings contribution only from FY2027, given its scheduled opening towards the end of 2026," said the research firm in a note on Wednesday.

In Johor, growth has continued to rise steadily with its revenue contribution rising from 14% in FY2025 to 20.1% in FY2026.

As many of AEON’s malls are located near the Johor-Singapore Causeway, many Singapore shoppers have found the convenience of the short journey and its less expensive items.

“We believe AEON may further deepen its presence in Johor to capitalise on the state’s favourable economic prospects,” said TA Securities.

"We understand that the southern region [of Peninsular Malaysia] records an average basket size of about RM80/transaction, well above the group average of RM55/transaction, reflecting stronger consumer spending in the region," it added.

This is seen in the group's FY2026 refurbishment project which remains primarily focused on Johor with many renovation works already under way.

Over the years, statistics show that renovated outlets have usually seen approximately a 15% boost following their reopening, said TA Securities.

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