The Star Online: Business
The Star Online: Business |
- Affin Research upgrades Aeon, higher target price
- Sony Rejects Third Point's Proposal To Spin Off Entertainment Unit
- KLCI slips in early trade, Axiata, Tenaga down
| Affin Research upgrades Aeon, higher target price Posted: KUALA LUMPUR: Affin Research has upgraded Aeon Co. (M) Bhd to "Reduce" from "Sell" with a raised target price of RM13.80 from RM12.13. Affin also said in conjunction with Aeon's 30th anniversary celebration next year, it believes the cash-rich company might raise its dividend payout. It said Aeon's first half of 2013 same-store-sales (SSS) growth was healthy at 4%. "We believe consumer spending will remain healthy in second half 2013, driven mainly by higher sales activities, especially on non-discretionary consumer products, in tandem with the festive holidays which are Hari Raya, year-end, and Christmas sales. "We now forecast a revised financial year 2013 net profit growth of 13.3% on-year, vs our previous growth forecast of 9.6% on-year," it said. Affin added Aeon is set to open a further three to four malls by end-2014 in strategic locations such as Taiping, Bukit Mertajam, Sg Petani and Klebang. "They are currently developing the 818k sq ft mall purchased in Dec 31, 2012 in Shah Alam, and is aiming to open the mall in financial year 2015. The group also guided that they will open the Aeon Kempas mall in financial year 2016," it said. Affin said the group currently has 26 Aeon malls and four MaxValue convenient stores in the peninsular region, and plans to expand the company's footprint into East Malaysia, targeting major cities such as Kuching and Kota Kinabalu in 2016. "Management has allocated an annual capex budget of RM400mil for financial year 2014 to 2016. Judging from Aeon's strong net cash position, and its robust free cash flow of RM140mil, we believe funding is not an issue for the ambition expansion program," it said.
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| Sony Rejects Third Point's Proposal To Spin Off Entertainment Unit Posted: TOKYO: Japan's Sony Corp rejected on Tuesday a proposal from activist shareholder Daniel Loeb to spin off a part of the electronics company's entertainment business. Loeb's Third Point LLC hedge fund proposed in May that Sony sell as much as a fifth of its money-making entertainment arm -- movies, TV and music -- to free up cash to revive the electronics business. "Sony's board of directors has unanimously concluded that continuing to own 100 percent of our entertainment business is the best path forward and is integral to Sony's strategy," the company said in a letter to Third Point. Loeb, who owns around 7 percent of Sony through shares and cash-settled swaps, has called the entertainment division poorly managed. Sony's board was expected to reject Loeb's proposals, the Nikkei newspaper said last week, with directors arguing Sony could compete better by maintaining ties with the entertainment arm of the business. Sony has long been a pillar of Japan Inc and a pioneer in the electronics industry. But it has lost market share - and its innovative edge - to aggressive foreign rivals such as South Korea's Samsung Electronics Co Ltd <005930.KS> and Apple Inc <AAPL.O> as they churn out blockbuster products.- Reuters |
| KLCI slips in early trade, Axiata, Tenaga down Posted: KUALA LUMPUR: Malaysia's blue chips fell in early Tuesday trade, dragged down by mild selling of key stocks like UMW, Axiata, Tenaga and Maybank amid a mixed broader market. At 9.03am, the FBM KLCI fell 4.94 points to 1,780.2. Turnover was 55.68 million shares valued at RM19.48mil. There were 59 gainers, 54 losers and 105 counters unchanged. UMW fell the most, down 34 sen to RM13.82, Axiata six sen to RM6.78 and Tenaga four sen to RM8.69. MAHB and AirAsia shed three sen each to RM6.65 and RM3.12. Among the banks, RHB Cap lost four sen to RM8.26 and Maybank four sen lower also to RM10.36. Faber was the top gainer, surging 23 sen to RM2.03 in active trade. KL Kepong rose 22 sen to RM21.48 and PPB Group 10 sen higher to RM15.08. |
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