Can buy the warrant for cheaper option. Tunepro-cf is selling at 2 cents only today. Saw a lot of buying interest both in mother and warrant. Good momentum
Agreed with all of u. Buy buy buy. Anyone here buying the warrant tunepro-cf? Very cheap. Selling at 2.5 cents only now. Let ke know if it good to buy the warrant. Cheers
Tune Protect Better year ahead Setting aside losses incurred by its Thai associate, Tune’s FY15 ended on a fairly good note as TIMB broke even, coupled with sustained double-digit top-line growth from its online unit. Despite recent gains, we see room for further upside underpinned by earnings getting back on to a growth track and reasonable valuations. We keep Tune as a mid-cap top pick and raise our target price to RM1.65. In FY15, Tune saw its gross and net earned premiums jump by 7% and 14%, respectively, the latter mainly due to higher premiums retained within the Group. Despite the commendable top-line performance, earnings declined by 5% on losses incurred by its Thai associate (TIPCL). Tune managed to grow its operating profit by 2% in spite of lower investment income recorded, buoyed mainly by TIMB reaching a breakeven point in FY15 as compared to a loss of RM2.3m posted in FY14. Combined ratio, the inverse of which is a fair measure of an insurer’s underwriting profitability, were in line with FY14’s at 84%, even with an increase in management expenses. Nevertheless, management expenses slowed significantly in 4Q15, causing FY15’s core profit to coming in 10% above our forecast. Following the stronger than expected FY15 results, we lift our FY16-17F forecasts by 11- 12% upon factoring in better growth prospects for the online segment, as well as lower management expenses. These were partially offset by our expectations for higher net commissions, lower income from its investment activities due to Tune’s conservative take on the equities and bonds markets, and lower contributions from its associates/JV. While we note that its Thai unit dipped into the red in FY15 on a mix of marketing, advertising and personnel costs, management guides for a turnaround in FY16 driven by measures aimed to rationalise its current product offering and distribution lines. As such, management is positive that a turnaround for TIPCL is on the cards for FY16 Upon raising our estimates, our GGM-derived TP rises from RM1.40 to RM1.65 based on a sustainable ROE of 16.7%. Following its latest results announcement, Tune’s share price has appreciated by 14%. On revised estimates, valuations are still attractive at 11.9x FY16F PER while we see a pick up in earnings growth (driven by stronger underwriting profit and a turnaround for its Thai unit) as a key catalyst. Tune also offers a yield of ~4%.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
icon123
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Posted by icon123 > 2016-03-02 16:04 | Report Abuse
Strong breakout for Tunepro, will fly together with AA, dont miss it !!!