April 10, 2012

LPI ' High Claims Ratio Impacted Underwriting Surplus

Stock Name: LPI
Company Name: LPI CAPITAL BHD
Research House: RHBPrice Call: SELLTarget Price: 12.15



LPI ' High Claims Ratio Impacted Underwriting Surplus
                                                                            Underperform (Downgraded)
Results Note
''       1QFY12/12 net profit (-18.5% yoy) was below expectations, accounting for only 17-18% of our and consensus full-year forecasts due mainly to higher-than-expected claims ratio of 60.1%.
''       Our fair value is lowered to RM12.15 (from RM13.60) based on unchanged target PER of 16x FY12 EPS. Downgrade to Underperform (from market perform).

Source: RHB Research - 10 April 2012

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