Exceeded expectations. Syarikat Takaful Malaysia Keluarga Berhad (STMB) registered a continuous sterling growth of +38.3%yoy for its 1QFY19 PAZTAMI, to RM96.4m. This translated to 30.6% and 30.7% of ours and consensus full year estimates respectively. It is worth noting that STMB had been growing at double-digit rate for 6 consecutive quarters since 4QFY17. It also saw a big jump of +71.7%yoy in 3QFY18 after the launch of its online sales portal and the strengthening ties with its bank partners.
Primarily driven by its ability to grow contributions and net Wakalah fee income. STMB’s 1QFY19 both gross and net earned contributions grew by +39.7%yoy and +41.9%yoy to RM707.1m and RM601.1m respectively. This was attributed to the increase of +55.0%yoy and +12.0%yoy in gross earned contributions from both its Family and General Takaful businesses respectively. The key growth drivers in Family and General Takaful continued to be higher sales from credit-related products and fire class respectively. We believe the stellar growth rate in STMB’s Family Takaful business was due to its strengthened bank partnerships in which we observed a five-year compound annual growth rate of 22.0% in its bancatakaful new business production. In addition, the group also managed to grow its investment income by +13.2%yoy to RM85.4m as a result of improvement in equity and higher profit from Islamic debts securities.
Source: MIDF Research - 26 Apr 2019
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