tiprankstipranks
Trending News
More News >
AEON Mall Co (JP:8905)
:8905

AEON Mall Co (8905) AI Stock Analysis

Compare
0 Followers

Top Page

JP

AEON Mall Co

(OTC:8905)

Rating:69Neutral
Price Target:
AEON Mall Co's overall stock score reflects its solid revenue growth and operational efficiency. However, high leverage and declining profitability remain concerns. While the stock shows strong upward momentum, overvaluation and potential short-term corrections due to overbought indicators are risks. The absence of recent earnings call data and impactful corporate events does not alter the current assessment.

AEON Mall Co (8905) vs. iShares MSCI Japan ETF (EWJ)

AEON Mall Co Business Overview & Revenue Model

Company DescriptionAEON Mall Co., Ltd. (8905) is a leading Japanese developer and operator of shopping malls. As part of the broader AEON Group, the company specializes in the design, development, and management of large-scale commercial facilities across Japan and other Asian countries, including China and Vietnam. AEON Mall Co. aims to provide comprehensive lifestyle destinations that cater to the diverse needs of consumers by integrating retail, dining, entertainment, and community services within their properties.
How the Company Makes MoneyAEON Mall Co. generates revenue primarily through leasing retail space to a wide variety of tenants, including international and domestic brands spanning fashion, electronics, groceries, and entertainment sectors. The company charges tenants rent based on fixed monthly fees as well as variable charges tied to sales performance. Additionally, AEON Mall Co. earns income from service fees related to facility management and operations, such as parking and utility services. Strategic partnerships with retailers and property investors, as well as the expansion of mall locations in high-growth markets, significantly contribute to the company's earnings. AEON Mall Co. also benefits from economies of scale and efficient management practices that help optimize operational costs and enhance profitability.

AEON Mall Co Earnings Call Summary

Earnings Call Date:Apr 11, 2025
(Q3-2024)
|
% Change Since: 14.76%|
Next Earnings Date:Jul 15, 2025
Earnings Call Sentiment Positive
The earnings call presents a generally positive outlook with record-breaking revenue and significant growth in specialty store sales across Japan, China, and Vietnam. However, challenges in the Chinese and Vietnamese markets and sluggish apparel sales in Japan present areas of concern.
Q3-2024 Updates
Positive Updates
Record-Breaking Revenue
Operating revenue reached a record high in the third quarter. Operating income, ordinary income, and net income attributable to owners of the parent all increased year-on-year.
Strong Performance in Japanese Specialty Store Sales
In Japan, operating revenue increased by JPY 11.4 billion with specialty store sales in malls and urban shopping centers showing growth.
Recovery in Chinese Market
In China, despite an initial decline, operating income increased by JPY 1.6 billion after accounting for extraordinary losses. Specialty store sales were 124.7% of the previous year level.
Vietnam Market Growth
Vietnam's specialty store sales for the cumulative Q3 achieved 106% year-on-year. November sales improved to 109.6% of the previous year's level.
New Store Openings and Expansion
Progress in opening new malls in China and Vietnam, including AEON MALL Wuhan Jiangxia and plans for further expansions in Vietnam.
Implementation of ESG Initiatives
Adoption of integrated ESG management, including solar carport installations and a commitment to biodiversity conservation.
Negative Updates
Operating Income Decline in China
Operating income in China initially declined by JPY 0.3 billion due to fixed costs related to previous mall closures.
Challenges in Vietnam
Vietnam faced challenges due to economic slowdown, sluggish external demand, and power shortages.
Sluggish Apparel Sales in Japan
Sales in apparel remained sluggish amid unusually warm weather, affecting overall retail performance.
Company Guidance
During the earnings call for AEON Mall's third quarter of fiscal year 2023, Yasutsugu Iwamura reported a record high in operating revenue, with significant year-on-year increases in operating income, ordinary income, and net income attributable to owners of the parent. In Japan, operating revenue rose by JPY 11.4 billion due to strong specialty store sales, while in China, despite a JPY 0.3 billion decline in operating income, adjustments for prior year extraordinary losses revealed an actual increase of JPY 1.6 billion. Vietnam experienced a JPY 0.5 billion boost in operating income despite economic slowdowns. Specialty store sales in China and Vietnam were robust, reaching 124.7% and 106% of the previous year, respectively. The company is advancing its medium-term management plan, focusing on overseas expansions in China and Vietnam, reforming business models in Japan, and launching new initiatives like joint delivery services. AEON Mall is also committed to ESG goals, including solar energy installations and biodiversity conservation.

AEON Mall Co Financial Statement Overview

Summary
AEON Mall Co shows strong revenue growth and operational efficiency, but faces challenges such as declining profitability and high leverage. The stable financial position is highlighted by an improved equity ratio, despite a significant drop in free cash flow.
Income Statement
79
Positive
AEON Mall Co has shown consistent revenue growth over the past years, with a notable revenue growth rate of 6.28% from 2024 to 2025. The gross profit margin stands at 19.63% for 2025, indicating efficient cost management, although it decreased slightly from previous years. Net profit margin was 3.17% in 2025, compared to 4.82% in 2024, indicating a decline in profitability. The EBIT margin improved to 11.59% from 10.97%, demonstrating stable operational efficiency. However, the EBITDA margin dropped slightly, suggesting increased operating expenses or reduced operational efficiency.
Balance Sheet
75
Positive
The debt-to-equity ratio is high at 1.64, indicating significant leverage, which could pose financial risk in adverse conditions. The return on equity (ROE) decreased to 2.86% from 4.39%, reflecting lower profitability relative to shareholder equity. However, the equity ratio improved to 30.00%, suggesting a stable financial position with an increasing proportion of equity funding.
Cash Flow
70
Positive
The free cash flow decreased significantly by 30.31%, indicating potential liquidity challenges. The operating cash flow to net income ratio was 7.17, suggesting strong cash generation relative to net income, which is favorable. The free cash flow to net income ratio was 1.02, reflecting that free cash generated is almost equal to net income, indicating efficient cash management.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
449.75B423.17B398.24B316.81B280.69B
Gross Profit
88.30B81.18B75.42B67.93B61.76B
EBIT
52.15B46.41B43.98B38.23B34.39B
EBITDA
120.19B122.96B114.40B101.96B92.98B
Net Income Common Stockholders
14.26B20.40B12.99B19.28B-1.86B
Balance SheetCash, Cash Equivalents and Short-Term Investments
90.70B129.91B92.68B87.15B131.44B
Total Assets
1.66T1.66T1.56T1.46T1.39T
Total Debt
816.08B860.31B817.40B763.67B710.43B
Net Debt
751.39B770.39B724.71B676.52B578.99B
Total Liabilities
1.15T1.18T1.11T1.04T1.01T
Stockholders Equity
498.98B464.33B440.52B416.49B377.34B
Cash FlowFree Cash Flow
14.61B20.96B871.00M-57.45B3.09B
Operating Cash Flow
102.28B126.31B101.49B61.49B61.62B
Investing Cash Flow
-96.58B-101.74B-103.28B-122.38B-64.44B
Financing Cash Flow
-64.79B-12.85B13.52B8.22B12.24B

AEON Mall Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2823.00
Price Trends
50DMA
2654.06
Positive
100DMA
2360.24
Positive
200DMA
2184.71
Positive
Market Momentum
MACD
45.12
Positive
RSI
56.63
Neutral
STOCH
31.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8905, the sentiment is Positive. The current price of 2823 is above the 20-day moving average (MA) of 2812.33, above the 50-day MA of 2654.06, and above the 200-day MA of 2184.71, indicating a bullish trend. The MACD of 45.12 indicates Positive momentum. The RSI at 56.63 is Neutral, neither overbought nor oversold. The STOCH value of 31.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8905.

AEON Mall Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$755.49B8.3418.00%2.55%10.51%-9.28%
78
Outperform
$744.85B9.539.70%3.37%4.28%12.70%
71
Outperform
$3.79T15.317.82%2.16%10.16%11.31%
71
Outperform
$3.28T17.687.53%1.54%4.99%14.16%
71
Outperform
$1.06T10.8921.32%4.38%6.40%28.80%
69
Neutral
¥642.44B45.052.92%1.64%6.28%-30.10%
61
Neutral
$2.83B10.920.41%8438.90%5.75%-21.03%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8905
AEON Mall Co
2,791.50
910.47
48.40%
JP:3289
Tokyu Fudosan Holdings
1,039.00
-38.22
-3.55%
JP:8802
Mitsubishi Estate Company
2,698.50
110.63
4.27%
JP:1878
Daito Construction
15,560.00
-633.72
-3.91%
JP:3288
Open House Co
6,260.00
1,739.40
38.48%
JP:8801
Mitsui Fudosan Co
1,361.00
-119.67
-8.08%

AEON Mall Co Corporate Events

AEON Mall Co., Ltd. Emphasizes Autonomous Management and Governance
May 29, 2025

AEON Mall Co., Ltd. has outlined its relationship with its parent company, AEON Co., Ltd., emphasizing its autonomous management approach within the Aeon Group. The company ensures independence and fairness in transactions with its parent and group companies through established governance structures, including a Governance Committee and a Nomination and Compensation Committee, to protect minority shareholders and enhance corporate value.

The most recent analyst rating on (JP:8905) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on AEON Mall Co stock, see the JP:8905 Stock Forecast page.

AEON MALL to Cancel Treasury Stock Ahead of AEON Co. Acquisition
May 22, 2025

AEON MALL Co., Ltd. has announced the cancellation of its treasury stock as part of a strategic move to become a wholly owned subsidiary of AEON Co., Ltd. This decision follows a share exchange agreement that requires AEON MALL to cancel all its treasury stock before AEON Co., Ltd. acquires all issued and outstanding shares, excluding those already owned by AEON. The cancellation is scheduled for July 1, 2025, and is a critical step in streamlining the ownership structure, potentially impacting stakeholders by solidifying AEON’s control over AEON MALL.

The most recent analyst rating on (JP:8905) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on AEON Mall Co stock, see the JP:8905 Stock Forecast page.

AEON MALL Sets Stock Option Issuance Price Amid Transition
May 12, 2025

AEON MALL Co., Ltd. has announced the issuance price for performance-linked stock options for its directors and executive officers for fiscal 2024. This move is part of the company’s transition to becoming a wholly owned subsidiary of AEON Co., Ltd. through a share exchange. The board has resolved to acquire all unexercised stock acquisition rights without compensation by June 30, 2025, to facilitate this transition, potentially impacting the company’s governance and alignment with AEON Co., Ltd.’s strategic goals.

AEON MALL Issues Performance-Linked Stock Options Amid Subsidiary Transition
Apr 21, 2025

AEON MALL Co., Ltd. announced the issuance of performance-linked stock options to align directors’ and executive officers’ interests with shareholders by linking compensation to corporate earnings and share price performance. This move is part of a broader strategy as AEON MALL prepares to become a wholly owned subsidiary of AEON Co., Ltd., which involves acquiring and canceling unexercised stock acquisition rights by June 30, 2025, ahead of a scheduled share exchange.

AEON Co. to Acquire Full Ownership of AEON Mall
Apr 14, 2025

AEON Co., Ltd. has announced a share exchange agreement to make AEON Mall Co., Ltd. a wholly owned subsidiary, effective July 1, 2025. This strategic move aims to enhance the corporate value of both entities by leveraging AEON Mall’s expertise and AEON Group’s resources, expanding business opportunities, and driving growth in the developer business through integrated development strategies.

AEON Mall Co., Ltd. Announces Restructuring and Delisting Plans
Apr 11, 2025

AEON Mall Co., Ltd. has announced a significant corporate restructuring, with plans to become a wholly owned subsidiary of AEON Co., Ltd. through a share exchange, leading to its delisting from the Tokyo Stock Exchange by June 2025. The company also proposed candidates for director positions, which will be voted on at the upcoming shareholders’ meeting, indicating a strategic realignment that could impact its governance and operational focus.

AEON Mall Ends Shareholder Benefits Amid Structural Changes
Apr 11, 2025

AEON Mall Co., Ltd. announced the termination of its shareholder benefit program following a resolution to become a wholly owned subsidiary of AEON Co., Ltd. through a share exchange agreement. This strategic move is expected to streamline operations and align the company’s interests more closely with its parent company, potentially impacting shareholder relations and benefits.

AEON Mall Reports Financial Results and Announces Delisting
Apr 11, 2025

AEON Mall Co., Ltd. reported its consolidated financial results for the fiscal year ending February 28, 2025, showing a 6.3% increase in operating revenue to ¥449,753 million and a 12.4% rise in operating income to ¥52,146 million. However, the net income attributable to owners of the parent decreased by 30.1% to ¥14,260 million. The company announced that it will become a wholly owned subsidiary of AEON Co., Ltd. through a share exchange, leading to its delisting from the Tokyo Stock Exchange on June 27, 2025. This strategic move is expected to streamline operations and strengthen its market positioning within the AEON Group.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.