Allianz has just announced its results for QE31/3/2010. Its net profit dropped by 61.5% q-o-q but increased by 14.5% y-o-y to RM23.2 million while turnover increased by 19.4% q-o-q or 28.2% y-o-y to RM626 million. The drop in the net profit on a q-o-q basis was partly due to Allianz's practice of valuing its Life Funds' liabilities at its financial year end, with surplus taken into its book in the 4th quarter. As a result, Allianz booked in a surplus of RM12 million from its Life Funds in QE31/12/2009. In addition, its profit for QE31/3/2010 was also impact by a lower underwriting results from its general insurance subsidiary.
Table 1: Allianz's last 10 quarterly results
Chart 1: Allianz's 17 quarterly results
Valuation
Allianz (closed at RM4.82 yesterday) is now trading at a PER of 6.1 times (based on last 4 quarters' EPS of 79 sen). At this PER multiple, Allianz is deemed very attractive.
Technical Outlook
Allianz has been in an uptrend since October 2009. Its uptrend line accelerated from SS to S1-S1. In the past 4 weeks, Allianz dropped to its 40-week SMA line support at RM4.82. If this support is broken, it may test its immediate uptrend line at RM4.45-50.
Chart 2: Allianz's weekly chart as at May 26, 2010 (Source: Tradesignum)
Conclusion
Based on good financial performance & attractive valuation, Allianz could be a good stock for long-term investment. However, after a strong rally and the current uncertainty in the overall market, one should be more circumspect about buying into any stock in a substantial manner.
Can you tell me why CIMB 1023.KL from RM14.40 drop till RM6.86.
ReplyDeleteWill that be a good buy?
CIMB just had a bunus split.
ReplyDeleteDear Alex,
ReplyDeleteCould you share your inputs on Emivest and E&O? Thanks!
Any opinion on the Frontken stock ?
ReplyDeleteAppreciate if you can comment something?
Alex
ReplyDeleteCan you comment about the Kenmark, oskvi and spsetia-wb. tx
from teh
Hi Kenny,
ReplyDeleteCIMB had a 1-for-1 Bonus Issue. This has the effect of halving the value of the stock.
Hi David Chan,
ReplyDeleteI have commented on Frontken one or two weeks ago. I believe you asked about this stock.
Hi AlexP,
ReplyDeleteEmivest broke below its uptrend line at RM0.60 a few days ago. It may find support at the horizontal lines of RM0.58 & then at RM0.55.
E&O tested its horizontal line at RM0.87-88 a few days ago. It may rebound upward & test its horizontal resistance at RM0.97 & then the psychological resistance at RM1.00.
Please check the accounts for the fundamental of these stocks.
Hi teh,
ReplyDeleteI have just touched on Kenmark today.
I think OSKVI is a very unexciting "tech venture fund" that has seen its heydays with the listing of stocks such as MTouche & GPacket.
SPSetia failed to surpass its long-term downtrend line at RM4.20 in the recent rally. Instead, it broke below its medium-term uptrend line support at RM4.00 in the past 2-3 weeks. SPSetia-wb will take its cue from the movement of the share.