Syarikat Takaful jumps as profit beats forecast

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KUALA LUMPUR (Oct 25): Syarikat Takaful Malaysia Keluarga Bhd's share price jumped as much as 52 sen or 8.39% to RM6.72 in morning trades today after the Islamic insurer reported yesterday its third quarter net profit, which surpassed market forecast.

Yesterday, Syarikat Takaful said that for the third quarter ended Sept 30, 2019 (3QFY19), net profit rose to RM112.34 million from RM83.96 million a year earlier. Cumulative nine-month net profit was higher at RM289.73 million versus RM204.35 million a year earlier.

Today, RHB Investment Bank Bhd wrote in a note that Syarikat Takaful's 3QFY19 net earnings met RHB's forecast but topped street estimates.

"We expect this set of solid results to provide reassurance on Syarikat Takaful's resilient fundamentals. Our call is premised on its superior ROE (return on equity) and increasingly attractive valuation after the recent share price pull-back.

"We make no changes to our earnings and TP (target price) post 3QFY19 results," RHB said. RHB said it is keeping its "buy" call for Syarikat Takaful shares with a TP at RM8.

At Bursa Malaysia, Syarikat Takaful's share price pared gains at RM6.53 at 9:53am to become the bourse's top gainer. The stock saw 698,400 shares traded.

Meanwhile, Affin Hwang Investment Bank Bhd wrote in a note today it had adjusted its Syarikat Takaful FY19 net profit forecast higher by 5.3% to account for the stronger 3QFY19 performance.

"Maintain buy rating and TP of RM8.40," Affin Hwang said.