STMB(filepic) told the stock exchange yesterday that while STMAB is currently dormant, its principal activity is to undertake the general takaful business operated by STMB upon completion of the exercise (proposed reorganisation)
KUALA LUMPUR: Kenanga Research maintained its Outperform call on Syarikat Takaful Malaysia Bhd on expectation that its earnings prospects will be driven by resilient demand for its products and favourable government initiatives.
The research house said on Monday that Syarikat Takaful’s net profit for the first nine months of the year had come in within expectations, as well as the absence of dividend.
It maintained its earnings forecasts for FY18 and FY19 and its target price of RM4.27.
“We like Syarikat Takaful for its decent earnings prospects driven by resilient demand for Takaful products as well as favourable government’s initiatives.
“Its unique proposition with 15% no-claim rebate should continue to attract the right customers with good claim experience,” it said in a note.
It added that the company’s consistently high ROE delivery in the industry was also another plus point.
The research house said it continued to believe that the growth momentum of the Takaful industry premium should outpace the conventional insurance given its low penetration as well as resilient demand for Takaful products.
“Meanwhile, to defend its turf which is the 4th biggest in market share in the combined Life insurance and Family Takaful business, the group’s main focus remained on strengthening its foothold from the perspective of customer reach, operational agility, cost competitiveness as well as maximising its shareholders value,” it said.
The research house also noted that the group has also been amplifying its presence through various marketing activities (including online initiatives) as well as promoting its unique proposition with its 15% no-claim rebate; with the latter to attract the right customers with good claim experience.
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