Tai Fook has a buy rating on 00984-HK, with a target price of HK $16 and a price-to-earnings ratio of 13 times expected 2009 results. The bank expects Aeon's performance in the Hong Kong market to remain stable through the implementation of strategic store opening plans. Dafu supplement means that by the end of 2009, Aeon plans to open a new independent supermarket in Tseung Kwan O and two new commodity stores in Guangzhou, so as to achieve economies of scale.
In addition, the bank also pointed out that the company will benefit a lot from the improvement in consumer spending in southern China, while the further improvement of business maturity in the Hong Kong market is expected to achieve steady growth.
Aeon closed down 2.88% at HK $13.50.