(TIH MK/BUY/RM1.54/Target: RM1.70)

Tune reported 1Q17 results that came in weaker than our expectation. Earnings were impacted by higher claims ratio, management expense and impact of MAVCOM’s “opt-in” policy. On a more positive note, travel insurance take-up rate has stabilised. In addition, the various collaborations with AirAsia are expected to drive a strong recovery in 2018. Maintain BUY with a lower target price of RM1.70 to factor in more conservative management expense ratio assumptions.

Source: UOB Kay Hian Research - 23 May 2017