Syarikat Takaful Malaysia

Re: Syarikat Takaful Malaysia

Postby winston » Mon Mar 30, 2020 9:42 am

vested

Syarikat Takaful (STMB MK)
Claims Experience Remains Benign - Opportunity To Accumulate


Syarikat Takaful Malaysia Keluarga (STMK) is now trading at its historical trough PER valuations.

We think that this presents an excellent opportunity to accumulate the stock as claims ratio is likely to remain benign while management remains confident of sustaining previous year’s dividend, which implies an attractive yield of 5.7%.

That said, we have conservatively trimmed our 2020/21 earnings by 5%/4% to factor in
weaker premiums.

Maintain BUY with a lower target price of RM5.06 (2.97x P/B/11.9x PE).

Source: UOBKH

https://research.uobkayhian.com/content ... 3065c759e9
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Re: Syarikat Takaful Malaysia

Postby winston » Fri Apr 17, 2020 2:18 pm

HLIB Research lowers target price for Takaful to RM5

KUALA LUMPUR (April 17): Hong Leong IB Research (HLIB) has maintained “Buy” on Syarikat Takaful Malaysia Keluarga Bhd (STMB) at RM4.29 with a lower target price (TP) of RM5 (from RM5.55) and said although management remained optimistic with its short-term outlook, HLIB was wary of some negative knock-on effect from Covid-19.

In a note today, the research house said it hence cut its 2020-22 profit estimates by 8%, after lowering both its gross earned contribution and investment-related income assumptions.

“That said, the structural long-term growth prospects of STMB remain bright, in our view, looking at the:
(i) underpenetrated insurance space,
(ii) favourable demographics, and
(iii) huge domestic protection gap.

“Also, valuations are inexpensive vs historical levels (trading near -2.0SD P/B).

Retain BUY but with a lower GGM-TP of RM5.00 (from RM5.55), based on 2.96x FY20 P/B,” it said.

Source: The Edge

https://www.theedgemarkets.com/article/ ... akaful-rm5
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Re: Syarikat Takaful Malaysia

Postby winston » Tue May 19, 2020 9:35 am

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Syarikat Takaful Malaysia Keluarga (STMB MK)

1Q20: Strong Share Price Recovery; Downgrade To HOLD

STMK’s 1Q20 results are in line with our expectation.

We think that the impact of the MCO and near-term weakness in credit related premium growth will become more visible in its upcoming results.

Coupled with its strong share price recovery from its low over the past two months (+48%), we have downgraded our recommendation to HOLD with an unchanged target price of RM5.06 (2.97x 2020F P/B). Entry level: RM4.20.

https://research.uobkayhian.com/content ... ff70108a46
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Re: Syarikat Takaful Malaysia

Postby winston » Tue May 19, 2020 11:43 am

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Lower expenses drive 1Q20 earnings

We view STMK’s 1Q20 net profit (25% of our full-year forecast) as below our expectations as we expect lower earnings in the coming quarters.

1Q20 net profit advanced by 5.3% yoy, mainly underpinned by an 11.4% yoy drop in other expenses.

Retain Add, given its strong FY20-22F ROE of 22-28% and attractive valuation of FY21F P/E of 10.2x (vs. 5-year historical average of 12.7x).

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 8E1A10CFE7
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Re: Syarikat Takaful Malaysia

Postby winston » Wed Jul 29, 2020 6:19 am

Syarikat Takaful inks two bancatakaful deals with RHB Islamic

by Justin Lim

KUALA LUMPUR (July 28): Syarikat Takaful Malaysia Keluarga Bhd together with its subsidiary Syarikat Takaful Malaysia AM Bhd (STMAB), have entered into two bancatakaful service agreements with RHB Islamic Bank Bhd for a combined facilitation fees of RM151 million.

This includes a family bancatakaful service agreement, Syarikat Takaful said in a filing with Bursa Malaysia.

Under the agreement, RHB Islamic will sell, distribute and promote family credit takaful products developed by Syarikat Takaful. In return, Syarikat Takaful will pay a facilitation fee of RM145 million to RHB Islamic.

“In addition to family credit takaful products, Syarikat Takaful shall have the right of first refusal to develop and market family advisory takaful products proposed by RHB Islamic,” the group said.

The second agreement between Syarikat Takaful and RHB Islamic is a general bancatakaful agreement, under which RHB Islamic will sell, distribute and promote general takaful products developed by Syarikat Takaful. In return, Syarikat Takaful will pay a facilitation fee of RM6 million to RHB Islamic.

The two bancatakaful service agreements have a tenure of five years each, said the group.

The Employees Provident Fund Board (EPF) is a major shareholder in both RHB Bank and Syarikat Takaful.

As at June 30, EPF held a 42.54% shareholding in RHB Bank. It also holds a direct interest of 6.61% in Syarikat Takaful and direct interest of 12.06% in BIMB Holdings Bhd, the holding company of Syarikat Takaful.

As such, Syarikat Takaful said the bancatakaful arrangements are not subject to shareholders’ approval.

Syarikat Takaful said the facilitation fees shall be amortised over the duration of the partnership.

It added that the bancatakaful arrangements are not expected to have any material effect on the group’s earnings and earnings per share for the financial year ending Dec 31, 2020 (FY20). But the agreements are expected to contribute positively to the group’s future earnings.

Syarikat Takaful’s share price closed five sen or 1.13% higher at RM4.48, bringing it a market capitalisation of RM3.71 billion. The stock has rebounded 42% from its recent low of RM3.15 on March 23. However, year-to-date, it is down 21%.

Source: The Edge

https://www.theedgemarkets.com/article/ ... hb-islamic
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Re: Syarikat Takaful Malaysia

Postby winston » Thu Jul 30, 2020 7:29 am

Syarikat Takaful pares gains after rising on new deal with RHB Islamic

by Arjuna Chandran Shankar

KUALA LUMPUR (July 29): Syarikat Takaful Malaysia Keluarga Bhd's (STMKB) share price pared gains in afternoon trading today after climbing as much as 47 sen or 10.49% to RM4.95 earlier following the Islamic insurer's announcement yesterday that it had signed new agreements with RHB Islamic Bank Bhd, allowing the latter to sell STMKB's products.

At 2.42pm today, STMKB shares pared gains to RM4.68 with 1.67 million units traded. At RM4.68, the company is valued at some RM3.87 billion.

Investors had today cheered news of the fresh five-year agreements, which offer continuity to the STMKB-RHB Islamic existing 10-year collaboration under their bancatakaful service arrangement.

However, the 10-year bancatakaful service arrangement, established since 2015, is scheduled to end this Friday (July 31) following RHB Islamic's decision to discontinue the scheme.

RHB Islamic is a wholly-owned subsidiary of RHB Bank Bhd.

On Jan 15, 2020, RHB Bank said in a Bursa Malaysia filing RHB Islamic had then notified STMKB of RHB Islamic's decision to discontinue the bancatakaful service arrangement in accordance with the terms of the bancatakaful service agreement between STMKB and RHB Islamic.

"With the discontinuance, the bancatakaful service arrangement will come to an end upon the expiry of the 5th anniversary of the bancatakaful service arrangement on July 31, 2020," RHB Bank said.

Yesterday, STMKB said in a Bursa filing the company and its wholly-owned subsidiary Syarikat Takaful Malaysia Am Bhd (STMAB) had respectively signed a family bancatakaful service agreement and general bancatakaful service agreement with RHB Islamic.

The five-year agreements commence this Saturday (Aug 1), according to STMKB.

"RHB Islamic shall sell, distribute, market and promote family credit takaful products of STMKB. In consideration thereof, STMKB will pay a facilitation fee of RM145 million to RHB Islamic.

"RHB Islamic shall sell, distribute, market and promote general takaful products of STMAB. In consideration thereof, STMAB will pay a facilitation fee of RM6 million to RHB Islamic," STMKB said.

Today, Hong Leong Investment Bank Bhd (HLIB) analyst Chan Jit Hoong wrote in a note that although the new agreements came at a heftier price tag at three times more for STMKB, it is a worthwhile investment for the company "since they (RHB Islamic) had generated circa RM200 million of gross earned contributions per annum for STMKB in the past".

Chan said HLIB raised its recommendation for STMKB shares to "buy" from "hold" with an unchanged target price of RM5.

"(Earnings forecast) unchanged as [the new agreements] were largely expected and quarterly financial reporting is just around the corner," the analyst said.

Source: The Edge

https://www.theedgemarkets.com/article/ ... hb-islamic
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Re: Syarikat Takaful Malaysia

Postby winston » Wed Aug 26, 2020 8:07 am

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Syarikat Takaful 2Q net profit slips on lower sales from family takaful business

by Wong Ee Lin

KUALA LUMPUR (Aug 25): Syarikat Takaful Malaysia Keluarga Bhd's net profit fell 7.24% year-on-year to RM75.09 million for the second quarter ended June 30, 2020 (2QFY20), from RM80.95 million last year, mainly due to lower sales generated by family takaful business.

Quarterly revenue was also 23.37% lower at RM515.73 million, from RM672.98 million in 2QFY19, according to a filing with Bursa Malaysia today.

Family takaful business recorded gross earned contributions of RM275.78 million for 2QFY20, 40.64% lower compared with RM464.56 million for the same quarter last year, mainly due to lower sales from credit-related products as the business activities were impacted by the Movement Control Order (MCO) and the Conditional Movement Control Order (CMCO) arising from the Covid-19 pandemic.

Meanwhile, the general takaful business generated gross earned contributions of RM162.8 million, a 2.05% decline from RM166.2 million for 2QFY19, mainly due to the fire class as the business activities were impacted by the MCO and CMCO arising from the Covid-19 pandemic.

On a quarter-on-quarter basis, the company reported a 26.09% decline in net profit from RM101.59 million, while revenue slipped 43.51% from RM913.04 million.

"The decrease in profit was mainly attributable to lower net wakalah fee income arising from lower sales generated from family takaful," said Syarikat Takaful.

For the cumulative six months ended June 30, 2020, Syarikat Takaful's net profit was flat (-0.41%) at RM176.67 million, from RM177.39 million last year, while revenue fell 10.2% to RM1.43 billion, from RM1.59 billion.

Source: The Edge

https://www.theedgemarkets.com/article/ ... l-business
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Re: Syarikat Takaful Malaysia

Postby winston » Wed Aug 26, 2020 11:39 am

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A decent performance during the MCO

STMK’s 1H20 net profit was within our expectation (at 48% of our full-year forecast) but above market expectation (at 56% of Bloomberg consensus).

2Q20 gross earned contributions (GEC) fell 30.4% yoy due to MCO but 2Q20 net profit fell only 7.3% yoy, thanks to lower expenses.

We retain our Add call on STMK premised on the expected qoq recovery in GEC in 3Q20F.

TP RM 5.38

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... FE0CE4C5D4
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Re: Syarikat Takaful Malaysia

Postby winston » Wed Nov 25, 2020 1:32 pm

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Lack of earnings catalyst post Covid-19

STMK’s 9M20 net profit was below our expectation at 70% of our full-year forecast due to lower-than-expected gross earned contributions.

We project a 22.8% qoq drop in 4Q20 net profit as 4Q is seasonally the weakest quarter in the year.

We downgrade STMK from Add to Hold as we project weak post-Covid-19 EPS growth of 3-5% in FY21-22F vs. 18-43% in FY17-19.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 62BF696645
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