Appreciate your view. Fair value losses is acceptable as this is macro factor. But just don't understand the share of losses in TPT. Would be better if Mr CEO can clarify that. Is that one off and potentially repetitive?
hi @auditorandconsultant ,reopening of border will benefit to tunepro? NTA 0.75 , i just can say this counter not suitable to short term trader..Q1 2022 will be better...hope can get some at below 0.40..
Probably, you could get around 0.395/0.390 because the sentiment is invitable when most retail investors just look at the financial statements without doing analysis
You are right that Tunepro is not suitable for short term trader. Tunepro is suitable for long term value investors.
That why we need to know why we invested in Tunepro and we need to set realistic expectation so that we won't feel dissapointed.
Just hold tight and wait for Country Border to be reopened soon. Remember Tunepro will definitely get benefit once the border is reopened.
Tunepro is just selling dream la. Rohit's previous plan was to focus on health insurance but seems like fail miserably. Who you know in Malaysia will buy health insurance from Tunepro? Ended up until now still heavily focus on travel insurance. Yes, in the next 1 year, pretty much everyone that travel internationally will buy travel insurance, Tunepro likely will pocket a sexy margin (assume no new variant), but travel demand wont rebound immediately. When travel demand rebound to pre-covid era, it means that it is so safe to travel and travel insurance is not necessary anymore. All those fintech related partnership will not come cheap. In FT21, overall commission ratio increases from 12% to 16.7%, which is damn pathetic considering Tunepro combined ratio of near 100%. Yes, there are many M&A ongoing, there might be economic of scale in the future, but that is too far to tell. There are many better alternatives even if you believe this fintech dream that Tony/Rohit trying to sell.
Hi WSB, this one I agree with you, that they didn’t get good sales/revenue from health insurance. But that doesn’t mean it can’t bounce back to its previous glory. Ppl who invest in tunepro are basically all long term holder. Don’t expect it will turn to a super miracle stock in a very short period of time. Businesses have ups and downs. From the share price perspective, basically it has reached bottom and hovering sideway now. Again, constructive comments are good for the investment education here. Most importantly, once we buy any stocks it is our own responsibility to bare. We invest, we do researches thoroughly, if you know dig deep enough then will understand more. And about you mentioned tourism won’t bounce so fast. We all pretty much know about this already. That’s why we here for long term investment.
If tunepro: Net earned premium RM 53.171 million But Fee and commission pay RM 12.34 million Management espense RM 37.99 million Claim paid (44.6-28.9)= RM 15.7 million. How Tunepro going to make profit?
Cumulative 12 months Net earned premium RM 196.8 million. Management expense RM 124.8 million Fee and commission pay RM 54.8 million
Should ask the CEO why management expense is so high?
There are challenges for insurers but at the same time there are plentiful of opportunities for insurer doing travel insurance.
There will be a new normal for the Post Covid as consumers' awareness on the need to have insurance coverage has been increased after this pandemic
We do acknowledge that there are challenges
Nevertheless, we have strong faith in Rohit's leadership. A successful person sees and seizes opportunities in every difficulty and challenge.
One of the very obvious achievements that should be acknowledged is that Tunepro's reliance on Air Asia has been reduced significantly and we should really appreciate effort that has been placed by Rohit's team. It is not easy to change company plan in such a shorter time and during pandemic
Historically, we could witness that share price did not drop much even with a negative or bad Quarter Result.
To compare apple with apple, we use Q1 result and its price fluctuation as a benchmark.
Q1 or 31 March 2021 results:- Revenue = RM117.449 million Loss Before Tax = - RM19.798 million Loss for the Period = - RM20.533 million Loss attributable to ordinary equity holders of the parent = - RM15.449 million Basic Loss Per Share (Subunit) = - 2.06 Net Asset per share (Subunit) = 0.75
Result announced on 28 May 2021 and price as at 28 May 2021 = RM0.410 Price of share after bad QR on 28 May 2021 = RM0.405 on 31 May 2021; RM0.400 on 1 June 2021; RM0.415 on 2 June 2021; RM0.410 on 3 June 2021; RM0.410 on 4 June 2021; RM0.420 on 8 June 2021
During May to June, Delta Variant was severely affecting everyone; many countries closed their borders; booster vaccination was only started in certain rich countries; there was no news about re-opening of borders; lot of uncertainties in May to June 2021.
The price of Tunepro was stable even though bad QR for Q1.
Q4 or 31 December 2021 results:- Revenue = RM102.794 million Loss Before Tax = - RM15.494 million Loss for the Period = - RM14.743 million Loss attributable to ordinary equity holders of the parent = - RM12.129 million Basic Loss Per Share (Subunit) = - 1.61 Net Asset per share (Subunit) = 0.75
Result announced on 25 February 2022 and price as at 25 February 2022 = RM0.400 (increased from RM0.385 due to Russia-Ukraine War)
From current period onward, Delta Variant has slowly vanished and Omicron Variant even though could spread virus very fast, it is not as serious as Delta so long the infected person has been fully vaccinated and has taken Booster Vaccine. Furthermore, there are more and more countries re-opening their borders and set a more relax travelling SOP so long the traveler has been vaccinated. More and more VTLs will be opened among different countries in SEA first. Malaysia is going to open its borders fully soon and we are not waiting for PM to announce once the SOP is finalised.
As such, do not simply dump your shares if you understand the business well and you have initially set to hold for long term for value investment! Historical event had already showed us that Tunepro is meant for Value Investors!
Do not be fooled by those sour grapes who keep on telling pathetic excuses or reason such as AA is going to bankrupt and then Tunepro is going to be making further losses and etc. just to trigger anxiety to you to dump or cut loss. HOLD your shares tightly if you do not have BULLET to top up. For my group of Investors, we are ready to collect more. Remember, we should HOLD for LONG TERM VALUE INVESTMENT! Tunepro is not meant for Short Term Trading!
Disclaimer: The above comments are only for sharing purpose and shall not be construed or treated as an investment call. Remember, money is yours and you should be making investment decision responsibly.
Tunepro reliance on Air Asia has been reduced significantly is solely just because of minimal international flights by AA. In fact despite effort to move away from travel insurance, its travel insurance mix (% of premium) is only getting higher and higher. Travel insurance as a % premium: 16% (2018), 14%, 17%, 25%(2021).
Looking back at Tunepro strategy, pre-covid era, Tunepro wanted to reduce its motor business, understandable, since margin is slim and many operational costs involved. Motor mix reduces from 41% (2018) to 20% (2021). In early 2021, when Covid hit hard, Tunepro changed its strategy to focus on health/lifestyle. That has failed miserably, basically no new take up at all, health business mix reduces from 6% (2018) to 4% (2021) instead. Branch out to health insurance is a good and sustainable idea (there are big insurers that solely focus on health in Sg and US), but sadly no customers trust Tunepro.
Back to Tunepro current business mix, it is still pretty much same as any traditional general insurer, traditional block of business is still >50%. Whereas for the travel insurance, pre-covid yes, fat margin from there, but during covid-era, might not be. The current mandatory travel insurance for international tourists to middle east will not last forever, can expect a big drop once government drop the mandate. Not to mention the premium size is damn pathetic, ~RM16 per policy.
Hi wsb, I think we all have to admit that COVID won’t simply go away in this coming 2-3 years time, yes, it’s not a permanent mandatory to buy travel insurance but we can foresee this sales will last for at least 3 years.
You cannot deny that it is Tunepro's management plan to find other sources of Travel Insurance Income other than AA. The result has proven that the top management's effort paid off. I acknowledged that it is the fact that there is a reduction in international flight of AA. For example, Tunepro has successfully sourced for more business partners like those in Middle East, and now started to venture into Vietnam and Indonesia Market.
RM16 per policy, I do not know how you get this absolute figure, I have tried running the Quotation several time, the price depends on many factors like travelling period and nationality. I had tried for a tourist from China who will travel to Malaysia from early March 2022 to end of March 2022, the travel insurance costs him RM560 per policy.
Well, no one will know when the Covid-19 will last. Nonetheless, the awareness of public or traveller to have travel insurance is increased. There will be a new normal for travelling requirements to include insurance and more countries are going to accept insurance and "green passport" will become a new normal. If you only look at Covid-19 and ignore the opportunities post Covid-19, then I guess you have just been too short sighted. I believe Tunepro looks beyond post Covid-19 and I believe more and more requirements will be set in the future for international travel and flight.
Read this article for your more information (there are more articles which will broaden your horizon of looking at Travel Insurance business, think out of the box, think out of Post Covid-19).
From the presentation, travel premium in FY2021 = 101mil, 93% mix in middle east (pg7), total count of policies = 6.73mil (pg31), per policy (travel insurance in middle east) = RM14. The quotation that you get yourself is like retail customers, naturally come with higher margin, whereas Tunepro negotiated a deal with Air Arabia, all Air Arabia (low cost airline) customers automatically get insurance coverage.
"When you book your Air Arabia flight, you will be covered for 31 days from the first day of your travel. You can book via our website, mobile application, sales shop, travel agent or third party websites selling our tickets." https://www.airarabia.com/en/covid-19-global-assistance-cover
So much talking BS. Quarter results negative also wan to defend.
The recent QR, core insurance business loss making. Lol
If u look at previous QR, Tune has changed its business activities to Investment. Up and down driven by Investment. Haha. Insurance earnings very little. Quote instruments is mainly bonds / fixed income. The FV will incur losses when there is a hike in interest rate. I highlighted again the insurance biz is small compared to their reliance on Investment in Fixed income / bonds.
If u still want to play this stock, look at interest rate movement. If want to play travel, go to airport or airlines direct.
Rohit Nambiar, Tune Protect Group CEO, said that TPT’s losses were primarily due to a group personal accident account which will no longer be renewed. Nambiar said that signs point to TPT’s recovery, due to encouraging top-line growth in 2021
There are personal insurance and group insurance. Group insurance is like, Tunepro sold PA to Selangkah Vax, or Tunepro sapu all complimentary travel insurance by AirArabia. You can easily get a big block of business, but of course much lower margin. And of course, if people stop the renewal, e.g. when Selangkah Vax is rolling off, or when AirArabia stop the complimentary travel insurance, you will see a big drop in premium and hence losses due to non renewal.
A lot of retail investors opine that it is a bad decision to buy Tunepro when Fed Rate has increased.
Indeed, they might be wrong. Insurance core income is not from investment in bond, should be earned from Underwriting Income
Indeed, now it is the right timing to buy even more.....
Investment in bond is common in insurance as it is relatively low risk as compared with investment in equity.
LPI is different story because big portion of their investments is in Public Bank financial products in which Teh tycoon back the share. So dividends from public bank has been used to offset their losses in bond
Tunepro is a hidden gem and a lot of investors do not understand.
A lot of investors also do not understand the fair value gain or loss is just on paper and indeed it is a number crunching game.
If holder of bond opt to record fair value changes in OCI, then it shows no PnL impact
If holder of bond opted to measure bond investment at FVTPL, then the PnL impact will be reflected.
In any of the above cases, there is no cash flow impact at all.
Hope that investor will look at insurance business by normalising all meaningless numbers
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 2909 views | 2 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
skl4723
21 posts
Posted by skl4723 > 2022-02-25 18:37 | Report Abuse
Out. Loss making