Tunepro: An attractive insurance company

Results Update

For QE30/6/20142015 Tunepro (formerly, Tuneins)'s net profit dropped by 2% q-o-q but rose 13% y-o-y to RM16.1 million while revenue increased by 4% q-o-q or 14% y-o-y to RM115 million. Revenue increased by RM4.0 million q-o-q due to increase of RM3.8 million in gross earned premiums ("GEP") and RM0.2 million in investment income. Segmental profit increased by RM1.1 million q-o-q  due to an increase of RM4.2 million in pre-tax profits in general insurance, offset by decrease of RM1.2 million in general reinsurance, higher management expenses of the Company of RM1.5 million and decrease of RM0.5 million in share of profits of associates in Thailand.


Table: Tunepro's last 8 quarterly results


Chart 1: Tunepro's last 15 quarterly results

Valuation

Tunepro (closed at RM1.28 yesterday) is now trading at a PER of 13.5 times (based on last 4 quarters' EPS of 9.5 sen). At this PER, Tunepro is deemed fairly valued.

Technical Outlook

Tunepro is in a downward channel, with support at RM1.15-1.20 & resistance at RM1.60-1.65. The stock has found its support at RM1.25-1.30. This could form the base from which the stock may recover in the near future.


Chart 2: Tunepro's weekly chart as at Oct 5, 2015 (Source: ShareInvestor.com) 

Conclusion

Despite the negative technical outlook, Tunepro Tuneins is a good stock for long-term investment in view of its good financial performance, exciting prospect & reasonable valuation.

Note:
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, Tunepro.