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8 comment(s). Last comment by paperplane at Dec 13, 2019 10:45 AM
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PaulNewman
75 posts

Posted by PaulNewman > Dec 4, 2019 7:57 AM | Report Abuse

Fundamentals has been reflected in the share price


renjie0718
2 posts

Posted by renjie0718 > Dec 4, 2019 9:19 AM | Report Abuse

good research


renjie0718
2 posts

Posted by renjie0718 > Dec 4, 2019 9:19 AM | Report Abuse

support


AlgoQuant
37 posts

Posted by AlgoQuant > Dec 4, 2019 10:59 AM | Report Abuse

Posted by PaulNewman > Dec 4, 2019 7:57 AM | Report Abuse
Fundamentals has been reflected in the share price

Ans:
At current price of RM5.83, Takaful is trading at a P/E of only 12.67x and a P/BV of 3.68x

LPI trades at P/E 18x and P/B of 3.1x with a (much) lower ROE of 16.72% vs Takaful Malaysia's ROE of 29.11%

This is without including the Growth factor - the Takaful / Islamic Insurance will outpace that of the Conventional Insurance sector due to low penetration rates, structural shift etc

Hope this helps


Jarklp
134 posts

Posted by Jarklp > Dec 4, 2019 9:37 PM | Report Abuse

not sure why you compare life with general insurance, they are valued based on completely different methodologies.


AlgoQuant
37 posts

Posted by AlgoQuant > Dec 5, 2019 10:07 AM | Report Abuse

Jarklp not sure why you compare life with general insurance, they are valued based on completely different methodologies.
04/12/2019 9:37 PM

Ans:
You are concerned with the Management of these companies and it is a fair though misguided endeavor.

We are concerned only with the Valuations of companies and hence it makes no difference whether these companies are in life or general:
[Manulife (conventional - life), Allianz (conventional - life and general), LPI (conventional - general), Tunepro (conventional -general)].

In fact, it makes no difference what is the management expense ratio or commission ratio or retention ratio because as at the end of the day as equity shareholders, we are concerned only with how well these companies generate returns for shareholders.

In investing, never lose sight of the big picture.

Hope this helps


AlgoQuant
37 posts

Posted by AlgoQuant > Dec 13, 2019 10:43 AM | Report Abuse

paperplane Algo quant, sinxe you so technical. Can advise is it better buy bimb for pickup trading of takaful
11/12/2019 10:55 PM

Ans:
To value BIMB Sum-of-Parts is appropriate based on Bank Islam being a financial institution and Syarikat Takaful Malaysia Keluarga Berhad being an insurance company

BIMB shareholders will get 0.25 share of Takaful for every 1 BIMB share (after the enlarged shares from the corporate exercise)


Investing in BIMB or Takaful will depend on your preference:

BIMB due to Value (it is currently undervalued on a P/B basis but may continue to stay undervalued, due to the fact that after the distribution-in-specie, its growth driver which is Takaful would be taken out)

** To own 1 share of Takaful (currently at RM5.9x) you would have to buy 4 BIMB shares (currently valued at RM4.4x) therefore exposure to 1 Takaful share would require capital of RM4.4x * 4

Takaful due to Growth (pure exposure without "paying for the lower growth BIMB stake")

Hope this helps


paperplane
20640 posts

Posted by paperplane > Dec 13, 2019 10:45 AM | Report Abuse

great. Algo make sense

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