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

• Market Cap: HK$106.60M
• Dividend Yield: N/A
• Average Volume (3M): 51.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• 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 ▲(21.95% 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 general merchandise stores (GMS). The company offers a range of daily necessity merchandise, such as food, fashion, household items, and electrical appliances; kitchen utensils, stationery, glassware, home decoration, beauty and personal care products, and other products; food and beverages; bread, pastries, and other food delicacies; cosmetics, skin care, and personal care products, as well as drugs and healthy food products; and amusement rides. The company also operates AEONCITY, an online shopping store. It operates 10 GMS, 2 independent supermarkets, 49 independent Living PLAZA, 17 independent Daiso Japan, 1 Bento Express, and 3 Mono Mono store in Hong Kong; and 24 GMS, 13 independent supermarkets, and 1 specialty centers in Guangdong Province, the People's Republic of China. The company was founded in 1985 and is headquartered in Tsuen Wan, Hong Kong. AEON Stores (Hong Kong) Co., Limited is a subsidiary of AEON Co., Ltd.

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: Positive
• Last Price: 0.41
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0984, the sentiment is Positive. The current price of 0.41 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.40, and above the 200-day MA of 0.41, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.44 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	HK$455.26M	18.67	0.76%	―	-12.99%	89.87%
0984	46 Neutral	HK$106.60M	-0.28	―	―	-3.03%	-36.45%
0162	43 Neutral	HK$51.74M	-0.08	-110.16%	―	-17.63%	-13.10%
0312	42 Neutral	HK$236.99M	-10.76	-2.41%	―	-0.83%	93.83%
0097	39 Underperform	HK$542.42M	-5.60	-9.44%	―	-1.43%	21.29%
0602	39 Underperform	HK$53.95M	-1.42	―	―	-13.59%	76.48%

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

AEON Stores Delays Despatch of Circular on Major Lease Transaction

AEON Stores (Hong Kong) Co., Limited has announced a delay in sending to shareholders a circular relating to a previously disclosed major transaction concerning a lease agreement. The company has sought and obtained additional time from the Hong Kong Stock Exchange to finalize the information required in the circular, extending the expected despatch date from 8 January 2026 to on or before 8 February 2026. This extension affects the timetable for shareholder communication on the lease transaction but does not signal any change to the underlying deal terms, and is intended to ensure fuller disclosure and regulatory compliance for investors.

The most recent analyst rating on (HK:0984) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on AEON Stores (Hong Kong) Co., Limited stock, see the HK:0984 Stock Forecast page.

AEON Stores Renews Key Tseung Kwan O Plaza Tenancy in Discloseable HK$21.6 Million Deal

AEON Stores (Hong Kong) Co., Limited has agreed to renew the tenancy for its long-standing retail premises at Tseung Kwan O Plaza, where it has operated since 2009, for a term from 1 January 2026 to 30 November 2027. The new lease, subject to countersignature by the landlord’s agent, carries base rent of about HK$21.6 million plus potential turnover rent and requires a HK$6.4 million deposit, and under HKFRS 16 will result in recognition of a right-of-use asset of approximately HK$20.4 million, classifying the arrangement as a discloseable transaction under Hong Kong listing rules that does not require shareholder approval; the deal underscores AEON’s continued commitment to this key retail location and its reliance on internal resources to support ongoing store operations.

The most recent analyst rating on (HK:0984) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on AEON Stores (Hong Kong) Co., Limited stock, see the HK:0984 Stock Forecast page.

AEON Stores Expands Retail Footprint with New Lease in China

AEON Stores (Hong Kong) Co., Limited announced that its subsidiary, AEON GD, has entered into a 15-year lease agreement for premises in Zhuhai City, China, to expand its retail operations. This lease agreement, valued at approximately RMB38.8 million as a right-of-use asset, is considered a major transaction under Hong Kong’s Listing Rules. The agreement is expected to enhance AEON’s market presence in the region, with the lease terms including a base rent and management fees determined through market-based negotiations. The company has secured written approval from its majority shareholder, AEON Co, allowing it to bypass a general meeting for this transaction.

The most recent analyst rating on (HK:0984) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on AEON Stores (Hong Kong) Co., Limited stock, see the HK:0984 Stock Forecast page.

AEON Stores (Hong Kong) Secures Shareholder Approval for Key Agreements

AEON Stores (Hong Kong) Co., Limited announced the results of its Extraordinary General Meeting held on December 11, 2025, where shareholders approved two key resolutions. The resolutions included the ratification of the Master Services Agreement and the Revised ATV Purchase Annual Caps, both receiving unanimous support from the voting shareholders. This approval signifies strong shareholder confidence in the company’s strategic agreements and is expected to positively impact its operational capabilities and market positioning.

The most recent analyst rating on (HK:0984) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on AEON Stores (Hong Kong) Co., Limited stock, see the HK:0984 Stock Forecast page.

AEON Stores Expands Retail Footprint with New Lease in Zhuhai

AEON Stores (Hong Kong) Co., Limited announced a 15-year lease agreement for premises in Zhuhai City, Guangdong Province, China, to expand its retail operations. This transaction, valued at approximately RMB13.26 million as a right-of-use asset, is considered a discloseable transaction under the Listing Rules, reflecting the company’s strategic growth in the region.

The most recent analyst rating on (HK:0984) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on AEON Stores (Hong Kong) Co., Limited stock, see the HK:0984 Stock Forecast page.

AEON Stores Announces Extraordinary General Meeting for Key Resolutions

AEON Stores (Hong Kong) Co., Limited has announced an extraordinary general meeting to be held on December 11, 2025, where shareholders will consider and potentially approve resolutions related to the Master Services Agreement and the Revised ATV Purchase Annual Caps. These resolutions, if passed, will authorize the company to proceed with certain transactions and agreements, potentially impacting its operational strategies and financial planning.

The most recent analyst rating on (HK:0984) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on AEON Stores (Hong Kong) Co., Limited stock, see the HK:0984 Stock Forecast page.

AEON Stores Announces Closure of Register for Upcoming EGM

AEON Stores (Hong Kong) Co., Limited announced the closure of its Register of Members from December 8 to December 11, 2025, to determine eligibility for attending and voting at its upcoming extraordinary general meeting on December 11, 2025. This move is crucial for ensuring that only registered shareholders can participate in the decision-making process, reflecting the company’s commitment to maintaining orderly governance and shareholder engagement.

The most recent analyst rating on (HK:0984) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on AEON Stores (Hong Kong) Co., Limited stock, see the HK:0984 Stock Forecast page.

AEON Stores Renews Key Agreements and Revises Purchase Caps

AEON Stores (Hong Kong) Co., Limited has announced the renewal of its Master Services Agreement with AGSCM Japan, a connected entity under AEON Co, to continue certain services excluding the Dongguan Warehouse. This renewal involves non-exempt continuing connected transactions subject to regulatory requirements. Additionally, AEON Stores plans to revise its annual caps for the Master ATV Purchase Agreement due to an anticipated increase in purchases, requiring compliance with specific listing rules. An Extraordinary General Meeting (EGM) will be held to seek approval from independent shareholders regarding these agreements.

The most recent analyst rating on (HK:0984) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on AEON Stores (Hong Kong) Co., Limited stock, see the HK:0984 Stock Forecast page.