Tuesday, October 06, 2015

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.
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4 comments:

  1. laiTuesday, October 06, 2015 2:28:00 PM

    Hi Alex,

    May I know what is your criteria that constitutes ' the stock has find its support'?

    Thanks

    ReplyDelete
  2. Alex LuTuesday, October 06, 2015 3:50:00 PM

    Hi lai,

    At RM1.25-1.30, buyers came out and that stopped the slide in the share price. The term "the stock found its support" means literally just that.

    Is this the bottom from which the stock will recover? Not necessary. It could be just a temporary bottom.

    Technically speaking, we can see that the MACD signal line has cut above the MACD. That's a positive. We can also see a bullish divergence in the Stochastic indicator. That's another positive. Taken together with the tentative base of RM1.20, I feel that this level could well be the bottom.

    ReplyDelete
  3. UnknownWednesday, January 13, 2016 7:53:00 PM

    Hi Alex,

    What is your point of view on current situation of Tunepro?? Still it consider a good share for long term investment?? Thanks for your reply...

    ReplyDelete
  4. Alex LuThursday, January 14, 2016 8:21:00 AM

    Hi SIA HP

    Tunepro (closed at RM1.18 yesterday) has broken below its horizontal support at RM1.25 as well as its intraday low of RM1.22 in August 2015. Unless a recovery happens immediately, this downside breakout will lead to a continuation of the downtrend.

    ReplyDelete