D/G to HOLD with a higher TP of MYR1.37
The nature of AEON’s retail and shopping mall business exposes it to
moderate ESG risk factors. Key risks lie in the continuation of energy
output reduction along with minimising food wastages from its F&B
divisions. The group has identified areas of concern to address but more
detailed ESG disclosure and concrete targets are needed to enhance its
ESG standing. Rolling forward valuations to FY22, we derive a higher TP
of MYR1.37 (based on unchanged 17x FY22 PER). AEON is now a HOLD.