OSK Research maintained its "Buy" call on AEON Malaysia (6599) given the acquisition of Carrefour will have no impact on the company for now.
OSK maintained its financial year 2010 and financial year 2011 earnings forecasts at RM146.5 million and RM158.8 million respectively.
"We maintain the call at a target price of RM5.88 based on 13 times financial year 2011 earnings per share," it said.
It was reported that AEON Japan is bidding for Carrefour's Asia assets.
Japan's second largest retail group will bid for the Thailand, Malaysian and Singaporean operations of French retailer Carrefour.
It is also reported that the group has appointed Nomura as adviser for the bid.
Carrefour has 40 stores in Thailand, 19 in Malaysia and 2 outlets in Singapore. The acquisition would almost triple AEON's chains in the three countries to 99 stores.
"While we believe that AEON Malaysia is currently not involved in the bidding (AEON Malaysia operates as a separate entity), we think that AEON Japan may seek AEON Malaysia's assistance in managing Carrefour Malaysia and Singapore," it said.
This is given the latter's extensive experience in the local retail industry.
For instance, AEON Japan and Malaysia have worked together in exploring business opportunities in Vietnam.
"We maintain the call at a target price of RM5.88 based on 13 times financial year 2011 earnings per share," it said.
It was reported that AEON Japan is bidding for Carrefour's Asia assets.
Japan's second largest retail group will bid for the Thailand, Malaysian and Singaporean operations of French retailer Carrefour.
It is also reported that the group has appointed Nomura as adviser for the bid.
Carrefour has 40 stores in Thailand, 19 in Malaysia and 2 outlets in Singapore. The acquisition would almost triple AEON's chains in the three countries to 99 stores.
"While we believe that AEON Malaysia is currently not involved in the bidding (AEON Malaysia operates as a separate entity), we think that AEON Japan may seek AEON Malaysia's assistance in managing Carrefour Malaysia and Singapore," it said.
This is given the latter's extensive experience in the local retail industry.
For instance, AEON Japan and Malaysia have worked together in exploring business opportunities in Vietnam.
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