Syarikat Takaful Malaysia

Syarikat Takaful Malaysia

Postby winston » Fri Apr 26, 2019 10:04 am

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Another quarter of explosive earnings growth in 1Q19

At 31% of our full-year forecast, STMK’s 1QFY19 net profit was above our expectations, mainly due to strong growth in gross earned premium.

Factoring in higher GEC growth, we raise our FY19-21F EPS forecasts by circa 16% and target price from RM5.70 to RM6.50.

Maintain Add due to sterling projected net profit growth of 23% in FY19F and higher ROE of 30-33% in FY19-20F.

The key drivers for STMK’s 1QFY19 GEC were:-
(1) the contributions from a bancatakaful partnership with Bank Rakyat which started in 3Q18 (2) the swift expansion of the motor insurance policies sold online.


Source: CIMB

https://brokingrfs.cimb.com/qlW1qTt2aPN ... BwlSA2.pdf
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Re: Syarikat Takaful Malaysia

Postby winston » Fri Apr 26, 2019 10:38 am

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Syarikat Takaful (STMB MK)
1Q19: Strong Premiums Growth Priced In


Syarikat Takaful Malaysia reported 1Q19 results that were largely in line.

Strong premium growth was partly driven by its new bancassurance tie-up.

That said, we downgrade our recommendation to a HOLD following the share price staggering YTD performance of 50%, with an unchanged target price of RM5.82.

The stock is currently trading at +1SD above its historical mean P/B.

Entry level: RM5.20.

Source: UOBKH

https://research.uobkayhian.com/content ... 5e160a7002
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Re: Syarikat Takaful Malaysia

Postby winston » Fri Oct 25, 2019 8:11 am

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Takaful Malaysia 3Q net profit up by a third to RM112.34m

By Joseph Chin

Syarikat Takaful Malaysia Keluarga Bhd said despite business sentiments remaining cautious in 2019, the Takaful industry is expected to outperform the conventional insurers in view of the strong demand for Takaful products.

KUALA LUMPUR: Syarikat Takaful Malaysia Keluarga Bhd saw its net proft increase by 33.8% to RM112.34mil in the third quarter ended Sept 30,2019 from RM83.95mil a year mainly due to an increase in net wakalah fee income.

It announced on Thursday its revenue rose by 16.1% to RM753.51mil from RM648.95mil mainly due to higher sales generated by family Takaful business. Earnings per share rose to 13.59 sen from 10.19 sen.

Takaful Malaysia said the family Takaful business recorded gross earned contributions of RM543.7mil compared with RM436.7mil a year ago due to higher sales from credit-related products.

Family Takaful business recorded net benefits and claims of RM206.8mil, up by 1% from a year ago mainly due to higher surrender claims.

Takaful Malaysia said investment income for the family Takaful business rose to RM70.4mil from RM65.4mil mainly due to higher profit from Islamic debt securities. Family Takaful recorded fair value losses of RM9.4mil,

As for the general Takaful business generated gross earned contributions of RM171.9mil, down by 3% from RM177.1mil mainly due to fire and motor classes.

It recorded net benefits and claims of RM49mil compared with RM48.8mil. Investment income was RM7.8mil versus RM7.3mil a year ago mainly due to higher profit from Islamic debts securities.

As for the Indonesian operations, STMK said operating revenue increased by 6% to RM108.3mil from RM101.9mil. Gross earned contribution increased by 6% to RM92.8mil from RM87.7mil.

However. the Indonesian operations recorded loss before zakat and tax of RM3mil, narrowing from RM5.2mil a year ago.

Takaful Malaysia said the factors were higher expense reserves and lower surplus transferred from family Takaful fund.

“The Indonesian operations continued to be impeded by the window concept of promoting Islamic products practiced by the conventional domestic players. The takaful industry in Indonesia is anticipated to continue experiencing challenges due to the financial market volatility in addition to the economic conditions, ” it said.

For the nine months, Takaful Malaysia's net profit rose by 41.8% to RM289.73mil from RM204.35mil in the previous corresponding period.

Its profit before zakat and tax was RM332.2mil, up by 42% from RM234.2mil mainly due to higher net Wakalah fee income arising from business growth in the family Takaful and higher net investment income.

Its revenue increased by 21% to RM2.34bil from RM1.94bil mainly due to higher sales generated by family Takaful business.

On the outlook, Takaful Malaysia said despite business sentiments remaining cautious in 2019, the Takaful industry is expected to outperform the conventional insurers in view of the strong demand for Takaful products.

“Takaful Malaysia is poised to further expand its market share in 2019. To sustain its market leading position, the company will continue with its innovative strategies via the implementation of its digital strategy, introduction of online solutions, expansion of its distribution capabilities, strategic partnerships with leading Islamic banks and brand awareness initiatives.

“To support business growth and customer centricity, the company will continue its digital strategy to build the full digital ecosystem and to expand the business focus beyond credit-related business to reach out to the wide retail customer base of major partner banks, ” it said.

Source: The Star

https://www.thestar.com.my/business/bus ... QktxUUw.99
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Re: Syarikat Takaful Malaysia

Postby winston » Thu Jan 16, 2020 3:53 pm

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RHB discontinuing tie-up upon expiry

RHB announced it will not continue with their bancatakaful service agreement with STMB upon the expiry of its 5th anniversary on 31st July 2020.

That said, we believe STMB stands a fair chance to rekindle their relationship given previous business successes together.

However, they will still need to bid and compete with other takaful providers to resecure this, which in turn, may hit margins.

Without RHB, we estimate STMB’s FY20-21 earnings could potentially fall 2-7%.

For now, our forecasts are unchanged and the stock’s risk-reward profile is still balanced.

Maintain HOLD with a lower GGM-TP of RM6.20 (from RM6.70), based on 3.50x FY20 P/B.

Source: HLIB
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Re: Syarikat Takaful Malaysia

Postby winston » Fri Jan 17, 2020 6:51 am

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Oct 25. 2019

Syarikat Takaful (STMB MK)
3Q19: Looking To A More Challenging 2020 Growth Outlook


STMB reported 3Q19 results which came in 6% above our estimate.

Stronger-than-expected LPPSA premium growth was the key driver.

However, given the expectation of a flattish 2020 earnings trend, we opine that stock price performance could remain subdued despite 3Q19’s strong earnings performance.

Maintain HOLD and target price of RM6.50 (13.6x 2020F PE, 3.9x 2020F P/B). Entry level: RM5.70.

Source: UOBKH

https://research.uobkayhian.com/content ... 8219a21732
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Re: Syarikat Takaful Malaysia

Postby winston » Fri Jan 17, 2020 6:54 am

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Oct 24, 2019

3Q19 results above due to strong LPPSA business

STMK’s 9M19 net profit was above expectations (80-81% of our and Bloomberg consensus full-year forecasts) due to strong GEC growth in 3Q19.

3Q19 net profit surged 33.8% yoy, driven by a 24.5% yoy jump in Family Takaful GEC from strong contributions from the LPPSA business.

We upgrade STMK to Add due to the strong LPPSA-related contributions, more reasonable valuations, and stronger-than-expected 3Q19 results.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 9835B93554
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Re: Syarikat Takaful Malaysia

Postby winston » Fri Jan 17, 2020 8:23 am

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Takaful, BIMB slump after RHB Bank plans to end service deal

By Joseph Chin

Takaful fell 59 sen or 10.3% to close at RM5.11, the lowest since April 24,2019.

The decline in the share price erased RM487.80mil from its market capitalisation to reduce it to RM4.225bil. This was based on its issued shares of 826.79 million units.

RHB contributes to about 10%-15% of Takaful’s gross contributions.

“Should it be unsuccessful, we estimate the impact to Takaful’s FY20E group net profit (five-month impact) to be about 4%, while a full impact would be about 12% in FY21E.


Source: The Star

https://www.thestar.com.my/business/bus ... rvice-deal
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Re: Syarikat Takaful Malaysia

Postby winston » Fri Jan 17, 2020 8:31 am

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Takaful shares fall 10% on service expiry news

By GANESHWARAN KANA

“Kenanga: We do not anticipate material impact from this development as we estimate that Takaful Malaysia’s total bancassurance channels make up less than 50% of the group’s gross contributions,” it said.

Meanwhile, Affin Hwang Capital Research said that RHB Islamic has a “meaningful contribution” towards Takaful Malaysia’s Family Takaful gross earned contribution (GEC), potentially in the region of between 20% to 30%.

“Assuming this amount is removed from Takaful Malaysia’s top line, we foresee a decline in Takaful Malaysia’s GEC growth from 8.2% year-on-year (y-o-y) in 2020 to 7.1% y-o-y and in 2021 from 8.3% y-o-y to 6% y-o-y.

“We downgrade our rating from “buy” to “hold”, as we revise our 12-month price target down to RM5.80 from RM7.80,” stated the research house.

“UOBKH: On a worst case scenario, we estimate a 7% decline on our FY21 earnings estimates for Takaful Malaysia and a 2.9% decline on our FY20 earnings (five months’ impact as contract expires end in July 2020),” it said.


Source: The Star

https://www.thestar.com.my/business/bus ... xpiry-news
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Re: Syarikat Takaful Malaysia

Postby winston » Fri Jan 17, 2020 10:35 am

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Syarikat Takaful (STMB MK)
Sell-down Overdone; Upgrade To BUY


Syarikat Takaful Malaysia Keluarga’s (STMK) sharp share price decline in reaction to the discontinuation of its partnership with RHB Islamic presents an excellent opportunity to accumulate.

The stock is now trading at below its 10-year historical mean PE excluding earnings contribution from RHB Islamic bancatakaful, implying that the sharp sell-down is overdone.

We upgrade our recommendation to a BUY but with a lower target price of RM6.00 (13.0x 2020 PE) from RM6.50.

Source: UOBKH

https://research.uobkayhian.com/content ... 5f53335539
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Re: Syarikat Takaful Malaysia

Postby winston » Wed Feb 26, 2020 9:52 am

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Weaker 4Q19 earnings due to higher management expenses

STMK’s FY19 net profit was within expectations at 96% of our forecast and 97% of Bloomberg consensus estimates.

The key driver for STMK’s 4Q19 contributions (premiums) came from LPPSA which surged by approximately 50% yoy.

Retain Add given the expected strong growth in LPPSA contributions in 1H20 and attractive valuations.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A25E2079BB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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