For QE30/9/2017, Takaful's net profit rose 8% q-o-q & y-o-y to RM48.6 million while revenue was mixed- dropped 2% q-o-q but rose 12% y-o-y to RM476 million. Revenue rose y-o-y due to to higher sales generated by both Family Takaful and General Takaful business. Profit before zakat and taxation rose y-o-y due to higher net Wakalah fee income arising from robust business growth in the General Takaful business. Family Takaful business generated higher gross earned contributions of RM948.0 million due to higher sales from Family Takaful mortgage related products. General Takaful business generated higher gross earned contributions of RM413.1 million due to growth in fire and motor classes.
Table: Takaful's last 8 quarters' results
Graph: Takaful's last 45 quarters' results
Takaful (closed at RM3.83 last Friday) is now trading at a PE of 16.6 times (based on the last 4 quarters' EPS of 23.07 sen). At this PER, Takaful is deemed fully valued.
Takaful has recently tested its long-term uptrend line at RM3.60. The current price rebound could set the stage for its next upleg for the stock.
Chart: Takaful's weekly chart as at Oct 20, 2017 (Source: MalaysiaStock.biz)
Based on satisfactory financial performance & positive technical outlook, Takaful is a good stock for long-term investment despite its fully valuation.
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