• A dominant player in the local travel insurance segment. TUNEPRO is mainly involved in the provision of various general and life insurance products in Asia Pacific. The company offers a range of online insurance products, including travel, lifestyle protection, and guest personal accident insurance products. The group currently captures a strong niche in the travel insurance segment with approximately 70% market share of local travel insurance, riding on its sister company, AIRASIA’s low cos t carrier’s aggress ive network expans ion into new markets.
• Bottom-up from 52-week low. Share price of TUNEPRO corrected 47% from a 52-week high of RM2.08 on 26 Feb 15 to recent low of RM1.10 on 20 & 21 Jan before ending at RM1.20 on 22 Jan. We believe a floor has been established near RM1.10 following the Tweezers bottom formation and bottoming up indicators in the daily chart. Moreover, the falling wedge in the weekly chart and steeply oversold slow stochastic could indicate potential long term downtrend reversal.
• A decisive breakout above RM1.26 (30-d SMA) will lift prices higher towards RM1.34 (23.6% FR & 100-d SMA) and our long term price objective of RM1.51 (200-d SMA) . Key supports are RM1.16 (10-d SMA) and RM1.10 levels. Cut loss below RM1.09.
• Attractive risk to reward ratio with 25.8% upside against 9.2% downside. All in, we see an attractive risk to reward ratio for investor with a theoretical entry price of RM1.20 given that the downside to the cut loss zone of RM1.09 is 11 sen (-9.2%) while the upside to the LT price objective of RM1.51 is 31 sen (+25.8%).

Source: Hong Leong Investment Bank Research - 26 Jan 2016