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

• Market Cap: HK$98.80M
• Dividend Yield: N/A
• Average Volume (3M): 51.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• 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 ▲(31.58% 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: 0.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.38 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.40, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 43.59 is Neutral, 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	HK$497.41M	19.67	0.76%	―	-12.99%	89.87%
0984	46 Neutral	HK$98.80M	-0.26	―	―	-3.03%	-36.45%
0162	43 Neutral	HK$48.29M	―	-110.16%	―	-17.63%	-13.10%
0312	40 Underperform	HK$127.23M	―	-2.41%	―	-0.83%	93.83%
0097	39 Underperform	HK$591.18M	-6.10	-9.44%	―	-1.43%	21.29%
0602	39 Underperform	HK$51.88M	-1.42	―	―	-13.59%	76.48%

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

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.

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.

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.

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.