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Tuesday, February 18, 2014

Takaful- still going strong


Results Update

For QE31/12/2013, Takaful's net profit rose 31% q-o-q & 28% y-o-y to RM41.5 million while revenue was unchanged when compared to immediate preceding quarter (QE30/9/2013) but rose sharply by 20% y-o-y to RM378.5 million. Revenue increased due to higher sales generated by both Family and General Takaful business. Gross earned contribution from Family Takaful increased from RM198.3 million to RM246.1 million while for General Takaful business, it dropped from RM125.1 million to RM101.9 million. The surplus transfer in the quarter under review from Family Takaful was RM29.7 million as compared to RM28.3 million in the same period last year. General Takaful was RM17.0 million as compared to RM15.9 million previously. The higher surplus transfer from Family and General Takaful is mainly due to better underwriting and investment results.


Table: Takaful's last 8 quarters' results


Chart 1: Takaful's last 31 quarters' results

Valuation

Takaful (closed at RM10.68 at end of morning session) is now trading at a PE of 12.5 times (based on the last 4 quarters' EPS of 85.37 sen). At this PE multiple, Takaful is deemed very attractive, given its high CAGR of more than 30%.

Technical Outlook

The stock has been in an uptrend since its breakout at RM1.70 in 2011 (here).


Chart 2: Takaful's weekly chart as at Feb 17, 2014 (Source: Tradesignum)

Conclusion

Based on the good financial performance, strong growth and attractive valuation, Takaful could be a stock for long-term investment.
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Takaful.

9 comments:

lai said...

welcome back, Alex,

Why hibernate so long lah??

haha...

btw, UOB Kay Hian has a very bullish report on Maica, valuing it around RM2. What do you think?

Thanks.

delson h said...

Dear Alex,

How do u think about the movement of Hibiscs ? As the chart pattern seems ok

hkloon said...

Hi Alex,

Am thinking of going into US stock investment / trading, just wish to ask Kenanga trading platform has as much feature as offered by foreign stockbroking for overseas trading eg trailing stop, stop loss order ...etc?
regards

billyboy said...

Hi Alex,

What's your view on bpuri?

Alex Lu said...

Hi lai

Was it that long?

Onn Maica, I would say that anything that shot up so much, so fast makes me wary. Please send me that report.

Alex Lu said...

Hi delson h

I am not sure if Hibiscs' pattern has a name. It looks like a Cup-with-handle but the handle broke off.

Despite my earlier call on this stock, I am still very wary on this stock and all the other SPACs. They all look like, sound like, smell like the South Sea Company of the infamous South Sea Bubble (http://www.investopedia.com/features/crashes/crashes3.asp).

Alex Lu said...

hi hkloon


Our system can easily cater for it but it has not been implemented yet because of concern about huge computer-generated orders & the inherent risk involved.

lai said...

Hi Alex,

There you go.

http://research.uobkayhian.com/content_download.jsp?id=20121&h=e34efa3403c4f206c11404a6fbc37cd0

Alex Lu said...

Hi Lai,

Thank you for the link.

I will post my comments later.