Allianz: Earnings rose y-o-y

Result Update

For QE31/3/2019, Allianz's net profit dropped 1% q-o-q but rose 13% y-o-y to RM99 million while revenue rose 3% q-o-q or 6% y-o-y to RM1.344 billion. The Group's operating revenue rose q-o-q  due to a 7%-increase in operating revenue from life insurance segment brought on by higher premiums generated from bancassurance and employee benefits channel. This offset the 1.5%-drop in operating revenue from the general insurance segment mainly due to lower gross earned premiums. The Group’s profit before tax rose 18.3% q-o-q due mainly to higher profit contribution from life insurance segment.


Table: Allianz's last 8 quarterly results


Graph: Allianz's last 53 quarterly results

Valuation

Allianz (closed RM13.18 yesterday) is now trading at a PE of 11.8 times (based on last 4 quarters' EPS of 112 sen). At this PE, Allianz is deemed fairly attractive.

Technical Outlook

Allianz is in a long-term uptrend line, SS with support at RM11.80. Its immediate resistance is at the horizontal line at RM14.70.


Chart: Allianz's weekly chart as at May 23, 2019 (Source: Malaysiastock.biz)

Conclusion

Based on satisfactory financial performance, fairly attractive valuation and positive technical outlook, Allianz remains a good stock for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.