Stock Name: LPI
Company Name: LPI CAPITAL BHD
OSK Research Sdn Bhd has upgraded LPI Capital Bhd to a 'buy' from 'neutral' with an unchanged fair value of RM13.60.
In a research note today, OSK said LPI Capital was expected to continue to create long-term shareholder value through unremitting growth and robust results given the group's resilient performance and strong fundamentals.
OSK said LPI Capital's net profit for the nine months of financial year 2011 jumped 14.1 per cent year-on-year (yoy), thanks to better underwriting surplus, which expanded on 21.2 per cent yoy surge in gross premium as well as healthier investment income (+29 per cent).
"The higher underwriting numbers also fuelled a 12 per cent yoy growth in pre-tax profit," it said.
OSK said LPI Capital's underwriting surplus expanded by 18.3 per cent yoy, propped up by more robust growth in gross premium.
"The growth was mainly attributed to the cargo, hull aviation and offshore segment, fire, and followed by the motor segment," it said.
It said with stringent risk selection and management surplus in place, LPI Capital has managed to tame its claims ratio to 48.1 per cent from 48.4 per cent in the same period last year. -- BERNAMA
Company Name: LPI CAPITAL BHD
| Research House: OSK | Price Call: BUY | Target Price: 13.60 |
OSK Research Sdn Bhd has upgraded LPI Capital Bhd to a 'buy' from 'neutral' with an unchanged fair value of RM13.60.
In a research note today, OSK said LPI Capital was expected to continue to create long-term shareholder value through unremitting growth and robust results given the group's resilient performance and strong fundamentals.
OSK said LPI Capital's net profit for the nine months of financial year 2011 jumped 14.1 per cent year-on-year (yoy), thanks to better underwriting surplus, which expanded on 21.2 per cent yoy surge in gross premium as well as healthier investment income (+29 per cent).
"The higher underwriting numbers also fuelled a 12 per cent yoy growth in pre-tax profit," it said.
OSK said LPI Capital's underwriting surplus expanded by 18.3 per cent yoy, propped up by more robust growth in gross premium.
"The growth was mainly attributed to the cargo, hull aviation and offshore segment, fire, and followed by the motor segment," it said.
It said with stringent risk selection and management surplus in place, LPI Capital has managed to tame its claims ratio to 48.1 per cent from 48.4 per cent in the same period last year. -- BERNAMA
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