Friday 29 Mar 2024
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KUALA LUMPUR (May 28): Tune Protect Group Bhd (TPG) shares rose 8.97% this morning, after AmInvestment Bank Bhd upgraded the stock to “Buy” at 73 sen with a higher fair value of RM1.10 (from RM1), after rolling forward our valuation to FY19, pegging the stock to an unchanged forward PB of 1.4x.

At 11.07am, TPG rose 6.5 sen to 79 sen, with 4.48 million shares done.

In a note, the research house said today that the stock is now trading at an undemanding valuation of 0.9x to its FY19 BV/share estimate, considering it is still generating positive earnings with a decent ROE.

“We see value emerging for the stock. Although the group’s earnings are still lower compared [with] the quarters before, the impact of Mavcom’s policy, we are seeing a recovery in the travel insurance business, while the underwriting performance for its general insurance business has improved in 1QFY18. 

“We make no changes to our estimates for now, as this is only the first quarter’s results.

AmInvestment said TPG reported a stronger core earnings (PATAMI) of RM17.0 million in 1QFY18 (+38.8%YoY).

This was contributed by a higher topline growth from the recovery of the group’s travel insurance business, as well as a growth in motor premiums, the research firm added.

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