For QE31/3/2016, Takaful's net profit increased by 28% q-o-q to RM47 million while revenue rose 57% q-o-q to RM633 million. Revenue increased by 12.6% y-o-y mainly attributable to higher sales generated by Family & General Takaful business. Family Takaful rose from RM237 million to RM289 million from higher sales of Family Takaful mortgage-related products. General Takaful revenue rose marginally due to higher business from commercial classes. Its profit after
Table: Takaful's last 8 quarters' results
From the Chart 1 below, we can see that the revenue is on the uptrend. Profit margin rose steadily over the past 4 quarters which helped to stabilized the profit numbers.
Chart 1: Takaful's last 39 quarters' results
Takaful closed at RM4.07 yesterday. This means that Takaful is now trading at a PE of 21 times (based on the last 4 quarters' EPS of 19.2 sen). At this PE multiple, Takaful is deemed fully valued.
The stock has been in an uptrend in the past 4 years. However its movement has been sideways for the past 9 months after the share split of 1-to-5. The breakout in in March failed and the share price is again within the range of RM3.70-4.20.
Chart 2: Takaful's monthly chart as at Apr 18, 2016 (Source: ShareInvestor)
Chart 3: Takaful's weekly chart as at Apr 18, 2016 (Source: ShareInvestor)
Despite high valuation & unexciting technical outlook, I would rate Takaful a HOLD due to its steady earnings growth.
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.