AEON Stores (Hong Kong) Co., Limited (0984) AI Stock Analysis

• Market Cap: €102.70M
• Dividend Yield: N/A
• Average Volume (3M): 51.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -3.03%
• EPS Growth: -36.45%
• Country: HK
• Employees: 4,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -0.84
• Shares Outstanding: 260,000,000
• 10 Day Avg. Volume: 44,250
• 30 Day Avg. Volume: 51,350
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.22
• Price to Sales (P/S): 0.01
• P/FCF Ratio: 0.32
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(25.00% Upside)

The overall stock score is primarily influenced by the company's weak financial performance, characterized by declining revenues, persistent losses, and negative equity. Technical analysis suggests a neutral to slightly bearish trend, while valuation metrics highlight unprofitable operations. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strategic Partnerships

Strategic partnerships allow AEON to offer a diverse range of products while optimizing purchasing costs, enhancing its competitive advantage and potentially improving profit margins over time.

Product Diversity

A diverse product offering helps AEON attract a broad customer base and mitigate risks associated with reliance on a single product category, supporting long-term revenue stability.

Historical Cash Flow

Despite current challenges, AEON's historical ability to generate cash flow suggests potential for recovery and resilience in maintaining operations and funding strategic initiatives.

Negative Factors

Declining Revenues

Persistent revenue decline indicates challenges in market competitiveness and customer retention, which could hinder long-term growth and profitability.

Negative Equity

Negative equity suggests financial instability and increased risk of insolvency, limiting AEON's ability to invest in growth opportunities or withstand economic downturns.

Operational Inefficiencies

Weak operational margins indicate inefficiencies in cost management and resource utilization, potentially impacting AEON's ability to improve profitability and compete effectively.

AEON Stores (Hong Kong) Co., Limited Business Overview & Revenue Model

Company Description

AEON Stores (Hong Kong) Co., Limited operates as a retail chain in Hong Kong, primarily engaged in the supermarket and hypermarket sectors. The company offers a wide range of products, including groceries, household goods, clothing, and electronics, focusing on providing high-quality goods at competitive prices. AEON Stores aims to enhance customer convenience and satisfaction through its diverse product offerings and commitment to service excellence.

How the Company Makes Money

AEON Stores generates revenue primarily through the sale of consumer goods in its retail outlets. The company's key revenue streams include food and beverage sales, household products, personal care items, and clothing. AEON also benefits from strategic partnerships with local and international suppliers, which allow it to offer a variety of products while optimizing purchasing costs. Additionally, the company may earn income through promotional activities, loyalty programs, and the introduction of private label products, enhancing its profit margins. Seasonal sales and special promotions further contribute to its earnings, attracting a larger customer base and increasing transaction volumes.

AEON Stores (Hong Kong) Co., Limited Financial Statement Overview

Summary

AEON Stores (Hong Kong) Co., Limited faces significant financial challenges, with declining revenues, persistent losses, and negative equity. The company's high leverage and inefficient operations pose risks to financial stability, although historical cash flow generation has been a relative strength.

Income Statement

The company has experienced declining revenues over the past few years, with a negative net income indicating persistent unprofitable operations. The gross profit margin has been relatively stable, but EBIT and EBITDA margins are weak, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, implying high leverage. The equity ratio is also negative, demonstrating financial instability.

Cash Flow

Despite positive free cash flow in previous years, the company has shown zero free cash flow recently, suggesting challenges in cash generation. The operating cash flow to net income ratio is not applicable due to zero operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.05B	8.16B	8.69B	9.57B	9.55B	9.96B
Gross Profit	1.83B	2.05B	675.83M	805.96M	684.39M	888.87M
EBITDA	73.16M	59.81M	918.77M	929.62M	761.03M	1.20B
Net Income	-384.29M	-338.07M	-188.66M	-219.87M	-469.96M	-36.81M
Balance Sheet
Total Assets	5.22B	5.46B	5.58B	6.04B	7.45B	8.34B
Cash, Cash Equivalents and Short-Term Investments	814.91M	830.58M	1.15B	1.43B	1.84B	2.01B
Total Debt	3.64B	3.69B	3.21B	3.48B	4.37B	4.87B
Total Liabilities	5.87B	5.89B	5.67B	5.94B	7.13B	7.49B
Stockholders Equity	-746.52M	-529.59M	-197.74M	-274.00K	203.44M	702.66M
Cash Flow
Free Cash Flow	527.25M	367.28M	833.49M	772.17M	853.90M	1.16B
Operating Cash Flow	665.52M	523.72M	948.36M	866.80M	1.02B	1.32B
Investing Cash Flow	-129.58M	-48.52M	-260.42M	-127.29M	-7.24M	-299.09M
Financing Cash Flow	-654.28M	-749.84M	-1.04B	-1.08B	-1.04B	-987.85M

AEON Stores (Hong Kong) Co., Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0984, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.41, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0984.

AEON Stores (Hong Kong) Co., Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0825	50 Neutral	€505.84M	20.00	0.76%	―	-12.99%	89.87%
0984	46 Neutral	€102.70M	―	―	―	-3.03%	-36.45%
0162	40 Neutral	HK$55.19M	―	-110.16%	―	-17.63%	-13.10%
0312	40 Underperform	HK$182.11M	―	-2.41%	―	-0.83%	93.83%
0097	39 Underperform	€591.18M	―	-9.44%	―	-1.43%	21.29%
0602	39 Underperform	HK$52.91M	―	―	―	-13.59%	76.48%

AEON Stores (Hong Kong) Co., Limited Corporate Events

AEON Stores Delays Circular Dispatch for Major Transaction

AEON Stores (Hong Kong) Co., Limited announced a delay in the dispatch of a circular related to a major transaction concerning a Tenancy Agreement. The circular, initially expected by September 30, 2025, will now be dispatched by October 31, 2025, due to the need for additional time to finalize certain information. This delay may impact the company’s communication with shareholders and its operational timelines.

AEON Stores Expands Warehouse Lease to Boost Retail Operations

AEON Stores (Hong Kong) Co., Limited announced a major transaction involving the renewal and expansion of its warehouse lease agreements, effective from December 2025. This strategic move, valued at approximately RMB 80.83 million for right-of-use assets, is expected to enhance AEON’s operational capacity and support its retail businesses, reflecting a significant step in its growth strategy.

AEON Stores Expands Retail Operations with New Lease in Dongguan

AEON Stores (Hong Kong) Co., Limited announced that its subsidiary, AEON GD, has entered into a lease agreement for premises in Dongguan, Guangdong Province, China, to operate its retail business. The lease, valued at approximately RMB9.51 million as a right-of-use asset, spans 12 years and 6 months. This transaction is considered a discloseable transaction under Hong Kong’s Listing Rules, requiring notification and announcement but exempt from shareholder approval. The lease agreement signifies AEON’s strategic expansion in the region, potentially enhancing its market presence and operational capacity.

AEON Stores Delays Circular Dispatch for Major Transaction

AEON Stores (Hong Kong) Co., Limited has announced a delay in the dispatch of a circular related to a major transaction concerning a Tenancy Agreement. The circular, initially expected by 29 August 2025, will now be dispatched by 30 September 2025 due to the need for additional time to finalize certain information. This delay may impact stakeholders awaiting further details on the transaction.

AEON Stores Reports Interim Loss Amid Revenue Decline

AEON Stores (Hong Kong) Co., Limited reported its interim results for the first half of 2025, showing a decrease in revenue to HK$3,930,714,000 compared to the same period in 2024. The company experienced a loss of HK$226,372,000 for the period, attributed to various factors including increased finance costs and other expenses. Despite the loss, the company recorded a slight improvement in other comprehensive income, mainly due to fair value gains on investments.

AEON Stores Announces Board Meeting for Interim Results and Dividend Consideration

AEON Stores (Hong Kong) Co., Limited has announced that its board of directors will meet on 28 August 2025 to approve the unaudited interim results for the first half of the year and to consider the payment of an interim dividend. This meeting could have implications for the company’s financial performance and shareholder returns, reflecting its ongoing business strategies and market positioning.

AEON Stores Secures Shareholder Approval for Key Agreements at EGM

AEON Stores (Hong Kong) Co., Limited announced the successful passing of several resolutions at its Extraordinary General Meeting held on July 29, 2025. The resolutions included the approval of revised annual caps for consultancy services agreements and the ratification of multiple master agreements, which are expected to enhance the company’s operational capabilities and strategic positioning in the market. The overwhelming shareholder support for these resolutions reflects confidence in the company’s future direction and potential benefits for stakeholders.

AEON Stores Announces Discloseable and Connected Transaction

AEON Stores (Hong Kong) Co., Limited announced a discloseable and connected transaction involving the sale of 1,346,000 shares at HK$7.40 per share, totaling HK$9,960,400. This transaction, involving a connected party, is subject to specific reporting and announcement requirements but is exempt from circular and shareholders’ approval due to the transaction size. The sale is part of the company’s strategic financial management, potentially impacting its market positioning and stakeholder interests.