Results Update
Allianz has announced its results for QE31/3/2012. Its net profit increased by 55% q-o-q or 20% y-o-y to RM53 million while its revenue was unchanged q-o-q but increased by 13% y-o-y to RM739 million. The improved bottom-line was attributed to better results from the general insurance operations.
Table: Allianz's last 8 quarterly results
Chart 1: Allianz's last 25 quarterly results
Valuation
In the last 4 quarters, Allianz reported gross EPS of 98 sen or diluted EPS of 44 sen. Based on its closing price of RM4.71 at the close of the morning session today, Allianz is now trading at a net PE of 10.7 times. For a company with such a strong growth track record, Allianz is deemed fairly attractive.
Technical Outlook
Allianz's uptrend seems to have stalled. It has been consolidating within an ascending triangle. An upside breakout above RM5.00 would be bullish. On the other hand, if the share price were to break below the RM4.50 mark, the outlook would be bearish.
Chart 2: Allianz's weekly chart as at May 24, 2012 (Source: Tradesignum)
Conclusion
Based on good financial performance & fairly attractive valuation, I would rate Allianz as a good stock for long-terrm investment. However, you should be mindful of the technical uncertainty in the stock & avoid taking too large a position in this stock.
No doubt the EPS is very attractive. But I wonder the future for its general insurance business as it is taking too much the motor business which no a single general insurance company can sustain the profit in the long run
ReplyDeleteHi HP Teh,
ReplyDeleteLet's wait & see whether the general insurance segment improve in the next few quarters. You are right that the motor insurance business is tough but it is not all doom & gloom. If it is, Kurnia would not be able to find a buyer for its insurance business.
http://biz.thestar.com.my/news/story.asp?file=/2012/4/12/business/20120412184725&sec=business