I am beginner and need understanding please, need help

Posted by benjaminlim00730 > 2020-05-04 20:25 | Report Abuse

KUALA LUMPUR (May 4): LPI Capital Bhd's net profit for the first quarter ended March 31, 2020 (1QFY20) rose slightly to RM77.92 million, from RM77.16 million, on the back of profit from the general insurance segment. In a separate statement, LPI founder and chairman Tan Sri Dr Teh Hong Piow said for 1QFY20, the group suffered a fair value loss of RM8 million in the statement of profit or loss mainly due to investments in unit trust funds, quoted equities and corporate bonds. Is above means that the company earning is increase however there is reduction in profit due to investment failure lost of RM8m? I am new and beginner

Be the first to like this.

1 comment(s). Last comment by Jack Khan 2020-05-05 08:24

Jack Khan

1,296 posts

Posted by Jack Khan > 2020-05-05 08:24 | Report Abuse

WHAT! Revenue increase does not mean profit increase! There are so many factor that cause profit decrease! Example Insane fees to Company Director! Company like Sapura, IOI and Genting all pays Million to Director!
For Insurance company their business Model is to collect money from you and invest it in Equity, property, bond etc..
Their cost is payout for insurance policy, human resource, commission, tax, lost from investment etc...
Their revenue from premium on insurance policy, profit from investment etc..
So except more lost for investment Next Q!

Post a Comment
Market Buzz