PETALING JAYA: Maybank Investment Bank (Maybank IB) Research raised MNRB Holdings Bhd
’s financial year 2026 (FY26) to FY28 net profit forecasts following the group’s stronger-than-expected third quarter of financial year 2026 (3Q26) results.
“Our FY26 to FY28 net profit forecasts are correspondingly raised by 12%, 9%, 10% respectively,” Maybank IB noted.
Maybank IB said the group surpassed expectations at 82% of its full-year net profit estimates, largely due to higher-than-expected investment returns.
“MNRB’s 3Q26 RM151mil net profit took the net profit for the nine months to RM432mil, noting a 43% increase year-on-year (y-o-y),” the research house noted.
Yet, despite surpassing expectations, Maybank IB imputed a y-o-y decline for the reinsurer and takaful operator for its FY27 estimated earnings.
The research house said the projected earnings drop was based on a lower market-to-market gains outlook amid stable interest rates.
“Our forecasts assume a 10% decline in FY27 net profit, predicated on y-o-y lower investment income, as domestic interest rates are likely to be unchanged this year.
Maybank IB maintained a “buy” rating on the group’s earnings per share, raising the target price to RM3.40, from RM2.40.
The research house now values the group using a price-to-earnings ratio (PER) method instead of price-to-book value, to better reflect MNRB’s growth prospects.
It applied a long-term mean PER of 5.1 times multiple to the group’s calendar year (2026) net profit estimates.
In the nine-month period of FY26 (9M26), the group’s reinsurance business saw net profit rise 24% y-o-y and contributed 74% to the group’s net profit.
Maybank IB explained the group’s strong insurance results were supported by a favourable claims outcome, stable insurance revenue and resilient investment performance, underpinned by favourable fair value gains and lower unrealised foreign exchange losses.
Besides that, Maybank IB outlined that the group’s strong revenue and pre-tax profit results came mainly from MNRB’s general takaful and family takaful insurance segments.
“The General Takaful business saw its 9M26 revenue jump 34% y-o-y driven by growth in both its motor and fire portfolios.”
Meanwhile, the research house said the Family Takaful segment observed a 5.7% y-o-y increase in its 9M26 revenue, driven by higher contributions from Group Credit Term and Group Hospitalisation.
Subsequently, the research house highlighted the group’s 9M26 pre-tax profit jumped 41% y-o-y, attributable to both topline growth and higher investment income.
It also noted MNRB’s pre-tax profit had jumped threefold from RM6.4mil in 9M25 to RM27.4mil.
In a filing with Bursa Malaysia, MNRB detailed its net investment income increase was supported by disciplined asset allocation and strong returns from fixed income and equity portfolios.
Datuk Rudy Rodzila Che Lamin, interim president & group chief executive officer of MNRB said its financial performance is a reflection of the company’s disciplined underwriting, prudent risk selection and consistent execution across its core businesses.
“The improvement in earnings quality and returns underscores the resilience of our operating model in a dynamic market environment.
“We remain firmly focused on sustaining this trajectory through disciplined underwriting, portfolio optimisation and active capital management.”
