KUALA LUMPUR (Nov 22): CGS-CIMB Research has downgraded Tune Protect Group Bhd to “Hold” 57 sen with a lower target price of 58 sen (from 73 sen) and said at 62% of house full-year forecast, Tune Protect’s 9M19 net profit was below expectations, due to lower-than-expected gross premium.

In  note Nov 21, the research house said despite the 14% year-on-year (y-o-y) drop in gross written premium (GWP), Tune’s 9M19 net profit rose 3.9% y-o-y, thanks to lower net claims and expenses.

“Despite its decent valuation (CY20F P/E of 7.5x), we downgrade Tune Protect from Add to Hold due to the contraction in its GWP,’ it said.