Monday, November 21, 2011

Allianz's profit dipped slightly

Results Update

Allianz's net profit dropped by 25% q-o-q or 21% y-o-y to RM27.5 million while turnover increased by 2% q-o-q or 13% y-o-y to RM687 million. Top-line increased due to higher gross premium earned from the general insurance business while bottom-line decline due mainly to an out-of-court settlement of a legal suit.


Table: Allianz's last 8 quarterly results



Chart 1: Allianz's last 23 quarterly results

Valuation

In the last 4 quarters, Allianz reported gross EPS of 91 sen or diluted EPS of 40 sen. Based on its closing price of RM4.55 on last Friday, Allianz is now trading at a diluted PE of 11.4 times. For a company with such a strong growth track record, it could command a higher PE of 13-15 tines.

Technical Outlook

Allianz is now resting on its long-term uptrend line (SS) at RM4.50. This coincides with the horizontal line at RM4.50.


Chart 3: Allianz's weekly chart as at Nov 18, 2011 (Source: Tradesignum)

Conclusion

Based on good financial performance, undemanding valuation & still-positive technical outlook, I would rate Allianz as a good stock for long-term investment.

No comments: