For QE31/3/2018, Takaful's net profit rose 24% q-o-q or 23y-o-y to RM70 million while revenue was mixed- rose 44% q-o-q or 13% y-o-y to RM746 million. Revenue rose y-o-y due to to higher revenue 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. Family Takaful business generated higher gross earned contributions of RM324.0 million due higher sales from mortgage and credit-related products. General Takaful business generated higher gross earned contributions of RM182.4 million mainly from fire and motor classes.
Table: Takaful's last 8 quarters' results
Graph: Takaful's last 47 quarters' results
Takaful (at RM3.39 as at 3.30pm) is now trading at a PE of 12.7 times (based on the last 4 quarters' EPS of 26.7 sen). At this PER, Takaful is deemed very attractive.
Takaful has broken below its long-term uptrend line, SS at RM3.80.
Chart 1: Takaful's monthly chart as at Apr 25, 2018_10.00am (Source: Shareinvestor.com)
Takaful is now moving in an intermediate downtrend line, RR with resistance at RM3.50. If it can break above the RM3.50, it may begin its next upleg.
Chart 2: Takaful's weekly chart as at Oct 20, 2017 (Source: Shareinvestor.com)
Based on satisfactory financial performance & attarcive valuation, Takaful is a good stock for long-term investment. However we will have to wait for the technical outlook to turn positive before taking any aggressive position on this stock.
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