Post removed.Why?

Post removed.Why?

Upon the news of Celularity Inc and GX Acquisition Corp on last week Friday 8 Jan, Pluristem Therapeutics Inc NASDAQ: PSTI rose 14.57% to USD 8.49 +1.08 on Monday 11 Jan

Genting's life sciences division has finally hit jackpot by monetizing Celularity Inc and now considered a US biotechnology player. Every 10% of $1.7billion is equivalent to RM680 million value to Genting. Biotech sector in the US has super high potential and Celularity Inc can easily be a 10 bagger or more as the leading biotech company in the allogeneic placental immunotherapeutic space

Celularity Inc is a game changer and a leader in its category commanding value of $1.7 billion immediately upon listing

"There doesn’t appear to be much competition for this approach in the U.S., where it appears to be the only player. There are others around the world, including Israel-based Pluristem."

*Pluristem is a distant second listed on the Nasdaq:PSTI with a market capitalisation of $217 million

https://www.biospace.com/article/unique-superstar-investors-jump-in-on-celgene-spinout-celularity-s-250m-funding-round/

Celularity Inc formed Feb 2018 with $250million and 3 years later list with $1.7billion value or 580% ROI

The eight investors are 'superstar' investors including Celgene Corporation which led the funding, and United Therapeutics, Sorrento Therapeutics, Human Longevity, Genting Group, the Dreyfus Family Office, Section 32 and Heritage Group

https://www.biospace.com/article/unique-superstar-investors-jump-in-on-celgene-spinout-celularity-s-250m-funding-round/

With a high-profile group of investors and backers, Celularity launched with $250 million. It is a spinout from Celgene Corporation which led the funding. Investors include United Therapeutics, Sorrento Therapeutics, Human Longevity, Genting Group, the Dreyfus Family Office, Section 32 and Heritage Group.

The company’s founders are Robert Hariri and Peter Diamandis. Hariri, founder, chairman and chief executive officer, is also the former chairman and chief executive officer of Celgene Cellular Therapeutics, a division of Celgene Corporation, and the co-founder and vice chairman of Human Longevity. Diamandis, co-founder and vice chairman, is the founder and executive chairman of the XPRIZE and executive founder of Singularity University. He has co-founded 20 companies, including Human Longevity.

The company’s board includes John Scully, formerly of Apple and Pepsi-Cola, Bill Maris of Section 32 (previously founder and chief executive officer of Google Ventures), and Andrew von Eschenbach, former commissioner of the U.S. Food and Drug Administration (FDA).

Celularity has a wide-ranging focus and assets to work with. This includes the first proprietary allogeneic “off-the-shelf” immunotherapeutic platform, a clinical stage Placental Natural Killer (PNK) Cell Program, an IND-ready CD38 CAR-T program, an allogeneic CD38 CAR NK program, Phase III-ready placental adherent cell products for serious Crohn’s disease, Sorrento Therapeutics’ G-MAB Library of 50+ fully-human antibody-CAR constructs, and others.

TechCrunch writes, Celularity plans to use “stem cells found in the human placenta to quickly regenerate tissue and organs needed to treat cancer and other diseases. The idea is these types of cells can do a better job of helping us live longer, fuller, healthier lives.”

In addition to its many other assets, Celularity owns LifeBankUSA, a stem cell biobanking company that’s been in existence about 20 years. It is considered to be the only repository of donated placenta cells and biomaterials in the world. It also owns commercially-available regeneration products Biovance and Interfyl, as well as late-stage pipeline assets.

Forbes notes, “There is also a treatment for wound healing (Biovance), already approved, which Hariri says could generate $20 million or more this year, bringing total revenues above $30 million. He thinks the company can grow revenues on this existing business relatively quickly. There’s also an experimental placenta cell treatment for rheumatoid arthritis. Hariri says he has five clinical stage cell therapy candidates. In a collaboration with United Therapeutics, Hariri says, the company is even working on re-growing lungs. Those are big promises. At the least, it won’t be boring.”

“My goal is to make it so the next generation grows up in a world where cancer is managed just like the common cold, and the body’s natural regenerative engine remains empowered throughout our lives,” Hariri said in a statement. “Celularity is a new biotechnology company model founded to harness the placenta as a platform for discovery and therapeutics, ultimately with a goal of amplifying the body’s ability to fight disease, restore function and extend the healthy lifespan. It is my vision that the cellular medicines we derive from the placenta will lead to abundant and affordable treatments.”

The company already has conducted clinical trials and treated hundreds of patients. And Hariri told TechCrunch that some of these projects could be on the market in the next 12 to 24 months.

There doesn’t appear to be much competition for this approach in the U.S., where it appears to be the only player. There are others around the world, including Israel-based Pluristem.

“Celularity’s technology has the potential to augment human immunity and longevity,” Diamandis said in a statement. “The company’s ultimate vision is to make 100 years old the new 60, providing people with maximal cognition, mobility and aesthetics as they age. The 20 years of science, research, and intellectual property pioneered by Dr. Bob Hariri has the highest potential to become the cornerstone for this vision.”

*Genting Berhad Updates*

- One of GENT’s life-sciences investment, Celularity entered into a definitive merger agreement with GX Acquisition Corp, and the shares of the combined company will be listed on Nasdaq, expected to be completed during 2Q21. The post-transaction equity value of Celularity will be approximately $1.7 billion.

-To note, Celularity was formed in Feb 2018 with a US$250m funding from eight investors including GENT [. While GENT’s stake in Celularity is not disclosed, every 10% stake in Celularity is worth US$170m after listing, about 4.4% of GENT’s market cap. This signifies a 580% ROI. To add on, Tan Sri LKT is also a director in Celularity.

*Backgrounds*
- Celularity is a clinical-stage biotechnology company specializing in cellular medicine and cell therapy products. The cell therapy products are being developed to target indications across cancer, infectious and degenerative diseases.

- Celularity has a robust global intellectual property portfolio comprised of over 1500 patents, covering its processes, technologies, and key cell therapy programs. The company also has 10 preclinical immunotherapy drugs, including potential treatments for brain cancer and multiple myeloma.

- Celularity is also in clinical trials to rapidly scale and commence the first NK cell-based immunotherapy trial targeting COVID-19. This is cleared by FDA, approving the Company’s Investigational New Drug (IND) application f9. First dose was given in Sept 20, and later Celularity announced Positive DMC Safety Review and Continuation of its Phase II trials in Dec20.

*UOBKH Comments*
- With rising health concerns and continuous fund flow into healthcare segment, as witnessed from S&P 500’s healthcare indices’ stellar performance( 10-years CAGR:13.9%; 1-year return:14.8%), Celularity could potentially unlock better value after listing and successful trials for key products. Nevertheless, GENT might also monetize its stake to lock in the 580% return.

- We have not factored in Celularity’s stake in our GENT valuations until more detailed merger term sheets are announced. Maintain *BUY* on GENT with unchanged TP of RM5.51.

Syarikat Takaful M’sia Keluarga - RHB Islamic Banca Discontinued
Author: kiasutrader | Publish date: Thu, 16 Jan 2020, 10:09 AM

RHB Islamic will discontinue its bancatakaful service agreement with TAKAFUL after its 5-year term expires on 31 Jul 2020. While we are negative on the news, we anticipate limited impact to long-term prospects as banca contributions are thought to be held by other partners (mainly Bank Rakyat). We maintain our OP call and TP of RM6.85 on TAKAFUL for its sustainable projections and superior books against peers.

RHB Islamic looking elsewhere. Yesterday, RHB Islamic Bank (RHB) announced that it will be discontinuing its Bancatakaful Service Agreement with TAKAFUL after its five-year anniversary on 31 Jul 2020. To recap, the service agreement was entered on 26 Aug 2015 which gave TAKAFUL exclusivity to distribute family and general takaful products with RHB.

We are negative on the news, but not overly concerned. Though the termination was not expected as the service agreement was previously stamped to be 10 years (albeit at a 5-year plus 5-year renewal clause), we do not anticipate material impact from this development as we estimate that TAKAFUL’s total bancassurance channels make up less than 50% of the group’s gross contributions. The heavyweight contributor is thought to be Bank Rakyat (signed in Jul 2018) which is largely attributed to the 26% 9M-YTD growth (other major banca partnerships are with Bank Islam and Affin Bank). Furthermore, the service agreement would still provide seven months of contribution in FY20. We are not expecting similar discontinuation cases to occur in the near future. With regards to potential partners for RHB, possible contenders could be the likes of other Takaful product players such as Etiqa and Zurich.

Still hopeful with a hint of caution. Overall, we are still bullish on TAKAFUL’s long-term sustainability. Putting banca channels aside, the group rides on its strong agency force with digitalised platforms boosting direct sales to customers. Its remaining bancassurance partnerships are still expected to remain productive but may not see similar growth tractions as in the earlier reported quarters. That being said, the continuous agenda by Bank Negara to extend the country’s Islamic finance proportion to 40% by 2020 should be favourable to the Takaful industry. Additionally, management’s own efforts are in place to build a leaner and more sustainable operating environment in the long term, as reflected by its recent performance ratios.

Post-update, we leave our FY19E/FY20E numbers unchanged for now, anticipating minimal downside impact towards near-term performance.

Maintain OUTPERFORM and TP of RM6.85. Our target price is based on an unchanged 4.0x FY20E PBV (close to the stock’s +1SD over 3- year mean). TAKAFUL operates in a well-diversified portfolio which we believe shelters them from regulatory risks, warranting premium valuations against its peers (2-3x average). As such, we believe any downward price movements could present a buying opportunity for the stock. Subsequently, the reorganisation of Bank Islam and distribution of TAKAFUL shares could unlock an overhang and introduce fresh liquidity to the stock. The group also commands a superior ROE of c.30% (vs. industry average of 20%) while continuing to be a leader in the takaful insurance space.

Source: Kenanga Research - 16 Jan 2020

Perhaps the superinvestor and philanthropist Mr Koon Yew Yin and his wife would like to diversify and use some of his fantastic profits of 88.25 million – 30.25 million = RM 58.00 million within 9 months into a takaful insurance company that is riding on the structural growth in islamic insurance

Takaful Malaysia's also grew its net profit greatly by a factor of 10x from RM 38 mil (2009) to RM 380 mil (T4Q) or a whopping CAGR 25% over the last 10 years, growing profits even through the Global Financial Crisis and recession that followed (2009), with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing at a faster pace than conventional insurance)

Currently trading at a PE of only 12.7x (vs Lonpac PE 18x) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.11% (closest Lonpac ROE 16.72% with P/B of 3.1x)

* Record high dividend of 20c ex-date 18 Dec 2019 translating to DY of 3.4% *

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price" - Warren Buffett

Perhaps the value and growth investors in this forum would like to look at a business that is not operating in commoditised packaging products which would need to rely on external factors like the US-China trade-wars to benefit nor exposed to cyclical raw material / resin prices and diversify into a takaful insurance company that is riding on the structural growth in islamic insurance

Takaful Malaysia's net profit grew by CAGR 25% over the last 10 years, increasing by almost 10x from RM 38 mil (2009) to RM 380 mil (T4Q), growing profits even through the global financial crisis and recession that followed, with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing at a faster pace than conventional insurance)

Currently trading at a PE of only 12.7x (vs Lonpac PE 18) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.11% (closest Lonpac ROE 16.72% with P/B of 3.1x)

* Record high dividend of 20c ex-date 18 Dec 2019 translating to DY of 3.4% *

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price" - Warren Buffett

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

Perhaps the investors in this forum would like to look at a business that is not exposed to cyclical commodity prices and diversify into a takaful insurance company that is riding on the structural growth in islamic insurance

Takaful Malaysia's net profit grew by CAGR 25% over the last 10 years, increasing by almost 10x from RM 38 mil (2009) to RM 380 mil (T4Q), growing profits even through the global financial crisis and recession that followed, with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing at a faster pace than conventional insurance)

Currently trading at a PE of only 12.7x (vs Lonpac PE 18) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.11% (closest Lonpac ROE 16.72%)

* Record high dividend of 20c ex-date 18 Dec 2019 translating to DY of 3.4% *

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

Perhaps the investors in this forum would like to look at a business that is not exposed to cyclical commodity prices and diversify into a takaful insurance company that is riding on the structural growth in islamic insurance

Takaful Malaysia's net profit grew by CAGR 25% over the last 10 years, increasing by almost 10x from RM 38 mil (2009) to RM 380 mil (T4Q), growing profits even through the global financial crisis and recession that followed, with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing at a faster pace than conventional insurance)

Currently trading at a PE of only 12.7x (vs Lonpac PE 18) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.11% (closest Lonpac ROE 16.72%)

* Record high dividend of 20c ex-date 18 Dec 2019 translating to DY of 3.4% *

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

Perhaps the investors in this forum would like to look at a business that is not exposed to cyclical commodity prices and diversify into a takaful insurance company that is riding on the structural growth in islamic insurance

Takaful Malaysia's net profit grew by CAGR 25% over the last 10 years, increasing by almost 10x from RM 38 mil (2009) to RM 380 mil (T4Q), growing profits even through the global financial crisis and recession with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing at a faster pace than conventional insurance)

Currently trading at a PE of only 12.7x (vs Lonpac PE 18) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.1% (closest Lonpac ROE 16.7%)

* Record high dividend of 20c ex-date 18 Dec 2019 translating to DY of 3.4% *

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

BIMB Holdings - Post-Restructuring Details
Author: kiasutrader | Publish date: Thu, 12 Dec 2019, 11:54 AM

Losing out on Takaful contribution. Post-restructuring, the new entity will lose a chunk its top-line (9MFY19 contribution from Syarikat Takaful (STM) is 34%) as Bank Islam will become a full-fledged banking entity with STMKB to be stripped of from the new entity. Assuming the exercise is completed by end 3QCY20, we estimate that our FY20E earnings will be shed by ~29%. At a book value of RM5.32b and shares of Bank Islam at 1.96b (post-restructuring), we estimated that ROE of the new entity will be at 10.5% with a book value of RM2.71 per share.

(link to the above Kenanga research report - https://klse.i3investor.com/servlets/staticfile/375605.jsp)

As the upside for BIMB and BIMB-Wa is limited perhaps investors in this forum would like to switch and invest directly in the actual growth driver to BIMB's results which is Syarikat Takaful Malaysia Keluarga Berhad (which has declared record high dividends of 20c ex-date 18 Dec 2019)

The logic is very simple. If BIMB / LTH were not confident that value will be unlocked, that they will be better off after this corporate exercise, that they will gain through the share price rise of Syarikat Takaful Keluarga Malaysia Berhad, then they would not go through with such a move in the first place and just remain status quo

Record high and growing dividends and distribution-in-specie is the catalyst that will propel share prices higher. In fact, with recent announcements, it is likely that 4Q19 results in January 2020 will be a blowout quarter

The BIMB restructuring is fantastic news to Takaful Malaysia as liquidity and shareholding spread will increase and intrinsic value will finally be unlocked

It shows that even BIMB and its major shareholder Lembaga Tabung Haji think that they (and Takaful Malaysia STMKB) are vastly undervalued

It also shows that they are confident that with the distribution-in-specie of Takaful shares the near-term future for Takaful is strong just look at Mulpha and their decision to distribute Mudajaya via dividend-in-specie and the subsequent improved financial results followed by the spectacular share price rise recently...

Perhaps the investors in this forum would like to look at a business that is not exposed to the cyclical construction sector and diversify into a takaful insurance company that is riding on the structural growth in islamic insurance

Takaful Malaysia's net profit grew by CAGR 25% over the last 10 years, increasing by almost 10x from RM 38 mil (2009) to RM 380 mil (T4Q), growing profits even through the global financial crisis and recession that followed, with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing at a faster pace than conventional insurance)

Currently trading at a PE of only 12.7x (vs Lonpac PE 18) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.11% (closest Lonpac ROE 16.72%)

* Record high dividend of 20c ex-date 18 Dec 2019 translating to DY of 3.4% *

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

Perhaps the investors in this forum would like to look at a business that is not influenced by cyclical prices and global economy and diversify into a takaful insurance company that is riding on the structural growth in islamic insurance

Takaful Malaysia's net profit grew by CAGR 25% over the last 10 years, increasing by almost 10x from RM 38 mil (2009) to RM 380 mil (T4Q), growing profits even through the global financial crisis and recession that followed, with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing at a faster pace than conventional insurance)

Currently trading at a PE of only 12.7x (vs Lonpac PE 18) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.11% (closest Lonpac ROE 16.72%)

* Record high dividend of 20c ex-date 18 Dec 2019 translating to DY of 3.4% *

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

Perhaps the investors in this forum would like to look at a business that is not heavily regulated and exposed to hefty gaming taxes and diversify into a takaful insurance company that is riding on the structural growth in islamic insurance

Takaful Malaysia's net profit grew by CAGR 25% over the last 10 years, increasing by almost 10x from RM 38 mil (2009) to RM 380 mil (T4Q), growing profits even through the global financial crisis and recession that followed, with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing at a faster pace than conventional insurance)

Currently trading at a PE of only 12.7x (vs Lonpac PE 18) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.11% (closest Lonpac ROE 16.72%)

* Record high dividend of 20c ex-date 18 Dec 2019 translating to DY of 3.4% *

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

Perhaps the growth investors in this forum would like to look at non-government-linked businesses and diversify into a takaful insurance company that is riding on the secular structural growth in islamic insurance...

TAKAFUL's net profit grew by CAGR 25% over the last 10 years, increasing by almost 10x from RM 38 mil (2009) to RM 380 mil (T4Q), growing profits even through the global financial crisis and recession that followed, with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing at a faster pace than conventional insurance)

Currently trading at a PE of only 12.7x (vs Lonpac PE 18) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.11% (Lonpac ROE 16.72%)

* Record high dividend of 20c ex-date 18 Dec 2019 translating to DY of 3.4% *

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

Perhaps the growth investors in this forum would like to look at a takaful insurance co that is experiencing and inflection point and a structural shift in islamic insurance..

Takaful's net profit grew by CAGR 25% over the last 10 years from RM 38 mil (2009) to RM 380 mil (T4Q), increasing even through the global financial crisis and recession with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing much faster than conventional insurance)

Takaful is currently trading at a PE of only 12.7x (vs Lonpac PE 18) and a P/BV of only 3.6x (historical P/BV 6.x) with an industry-leading ROE 29.11% (Lonpac ROE 16.72%)

* Growing dividends and a record high 20c ex-date 18 Dec 2019 giving rise to DY of 3.4% *


(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

Perhaps the growth investors in this forum would like to look at a takaful insurance co that is experiencing and inflection point and a structural shift in islamic insurance..

Takaful's net profit grew by CAGR 25% over the last 10 years from RM 38 mil (2009) to RM 380 mil (T4Q), increasing even through the global financial crisis and recession, with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful insurance growing much faster than conventional insurance) that is currently trading at a PE of only 12.7x / P/BV 3.6x (historical P/BV 6.x)

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

Perhaps the growth investors in this forum would like to look at a takaful insurance co that is experiencing an inflection point and a structural shift to islamic insurance..

Net profit grew by CAGR 25% over the last 10 years from 38mil (2009) to 380m (T4Q), increasing even through the global financial crisis and recession, with a still low takaful penetration of 16% (overall insurance penetration rate of only 50% with takaful growing much faster than conventional) that is currently trading at a PE 12.7x / P/BV 3.6x (historical P/BV 6.x)

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

Life insurance records healthy growth in Q3 2019
Bernama / Bernama

December 06, 2019 16:39 pm +08

https://www.theedgemarkets.com/article/life-insurance-records-healthy-growth-q3-2019

In a gloomy economy the population's focus turns to protection and insurance against the unpredictable and insurance sales increase...

Perhaps the distinguished investors in this forum would like to look at a takaful insurance co that is experiencing structural growth growing by net profit by CAGR 25% over the last 10 years from 38mil (2009) to 380m (T4Q) with a still low takaful penetration of 16% (overall insurance peneration rate of 50%) that is trading at a PE 12.7x / P/BV 3.6x (historical P/BV 6.x)

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp

An opportunity to accumulate an investment-grade company at lowest valuations (P/BV = 3.6x - historical P/BV of 5 to 6) with a CAGR 25% over the past 10 years growing profits from 39mil (FY2009) to 380mil (T4Q) and untapped future growth potential in takaful insurance that is experiencing secular growth and still with only a 16% penetration rate (overall Malaysia insurance penetration rate of only 50%)

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

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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

When fundamentals have improved but share prices have retreated an anomaly occurs where it is bound to correct and revert back to the mean

(AlgoQuant) A Takaful Titan & Analysis of Listed Insurance Companies (TAKAFUL)

https://klse.i3investor.com/blogs/AlgoQuant/243164.jsp