Showing posts with label KURASIA. Show all posts
Showing posts with label KURASIA. Show all posts
May 21, 2012
April 13, 2012
Deal Sealed for RM1.55bn
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
Company Name: KURNIA ASIA BHD
| Research House: TA | Price Call: SELL | Target Price: 0.66 |
April 5, 2012
Stock Overview - KURASIA - 5 Apr 2012
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
KURASIA ( 5097 : 0.63 ) : Targeting 0.69
Description
Insurance
Resistance : 0.69
Support : 0.56
RSI of 64
RSI is on the rise
STOCHASTIC
It is on an upswing
TREND INDICATOR
Comment
The current rebound is targeting 0.69
Trading Strategy
Buy. Stop loss is at 0.56
Source:Jupiter Securities Research 05 April 2012
Company Name: KURNIA ASIA BHD
| Research House: JUPITER | Price Call: BUY | Target Price: 0.69 |
KURASIA ( 5097 : 0.63 ) : Targeting 0.69
Description
Insurance
Resistance : 0.69
Support : 0.56
RSI of 64
RSI is on the rise
STOCHASTIC
It is on an upswing
TREND INDICATOR
Comment
The current rebound is targeting 0.69
Trading Strategy
Buy. Stop loss is at 0.56
Source:Jupiter Securities Research 05 April 2012
KURASIA (FV RM0.77- TRADING BUY) Corporate News Flash: BNM Approves KIMB Sale
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
Company Name: KURNIA ASIA BHD
| Research House: OSK | Price Call: TRADING BUY | Target Price: 0.77 |
THE BUZZ
Kurnia Asia Bhd (KAB)announced on Bursa Malaysia yesterday that it has received Bank Negara Malaysia(BNM) approval to sell its wholly-owned subsidiary, Kurnia Insurans(Malaysia) Bhd (KIMB), to AmG Insurance Bhd (AmG).
OUR TAKE
Way paved for AmG toexpand insurance business. If the negotiations on the sale work out, the deal will allow AmAssurance Bhd to leverage on the expertise of its business partner Insurance AustraliaGroup Limited (IAG), which owns 49% of AmG, to grow its general insurance business in Malaysia. Whiledetails on the acquisition will only be announced after the signing of the definite agreement, we are maintainingour view that the sale would be fully paid in cash at 2.0x PBV.
More about IAG. IAG has a portfolio of general insurancebusinesses with leading brands across its home markets of Australia andNew Zealand and other specialist underwritingoperations. With a presence in Asia that it intends to expand, the group is focusingon accelerating its expansion to ensure that its Asian division delivers 10% ofgross written premiums by 2016. Having IAG on board has been positive for AmGas it gave the company access to the former's direct regional expertise, asexemplified by IAG's innovative online general insurance portal launched inAustralia ' Buzz Insurance ' which won the 'Australian Business Award forInnovation' in 2010.
2.0x PBV valuation fair. From recentM&As in the insurance industry,we noted the following: i) MAA Holdingssold its insurance business for 1.36x PBV, ii) PacificMas Bhd sold itsinsurance business for 1.71x PBV, iii) Jerneh Asia sold its insurance businessfor 2.25x PBV, while iv) Berjaya Corp hived off its 40% stake in Berjaya SompoInsurance at 3.35x PBV. Benchmarking the deal to our findings, we deem the 2.0xPBV fair. Based on KIMB's latest book value of RM757.5m as at end-June 2011,the potential cash to be raised from the disposal based on 2.0x PBV will amount to RM1.51bn. After the sale, KAB's book value will increase toRM1.15bn after paying off debts of RM360m, translating into an equivalent bookvalue per share of RM0.77.
What's next for KAB? After selling off KIMB, KAB will be left withits insurance business in Indonesia via PT Kurnia Insurance Indonesia andThailand via Kurnia Insurance Thailand Ltd. Given the company's cash pile ofRM1.15bn after the sale, we do not discount the possibility of it making a capital repayment to its shareholders, although we think that the groupwould keep some of its cash proceeds toexpand its businesses in Indonesia and Thailand.
Maintain TRADING BUY,lifting FV. Assuming that the deal will be completed at 2.0x PBV, weare retaining our TRADING BUY recommendationon KAB. Incorporating KIMB's latest book value into our calculation, our fairvalue (FV) for KAB is increased from RM0.68 to RM0.77. Our valuations are basedon the latest book value disclosed by KIMB as at end-Jun 2011. Should the dealbe completed, we believe that the valuation will be based on KIMB's book valueas at end-Dec 2011. Hence we think that there is still some potential upside toour valuation, premised on a higher book value for KIMB.
Source: OSK188
February 28, 2012
KURASIA (FV RM0.68 - TRADING BUY) FY11 Results Review: Right On Track
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
Company Name: KURNIA ASIA BHD
| Research House: OSK | Price Call: BUY | Target Price: 0.68 |
Kurnia's FY11 grosspremium and net profit came in below our expectations accounting for 90.3% and89.3% of our estimates respectively attributed to the RM9.95m share of lossesincurred by KIMB from Malaysia Motor Insurance Pool (MMIP). Net profit surged224.0% y-o-y, largely due to stable gross premium growth and lower claimsratio. Maintain TRADING BUY, with a fair value of RM0.68, based on the possiblesale of Kurnia Insurans (KIMB).
In line if not forMMIP. Kurnia's FY11 gross premium and net profit came in below our expectationsaccounting for 90.3% and 89.3% of our estimates respectively attributed to theRM9.95m share of losses incurred by KIMB from Malaysia Motor Insurance Pool (MMIP).Nonetheless, net profit surged by 61.6% q-o-q and 224.0% y-o-y, largely due to strongergross premium written (+4.8% y-o-y), lower claims ratio and lower management expenses. 4Q11's net investment income surged by 89.4%q-o-q due to better market conditions in the 4Q. Overall investment incomeyield for the year stood at 5.76%. No dividends were declared for FY11 as thegroup is committed to maintain its capital adequacy ratio above Bank Negara's(BNM) requirement of 130%.
Lower managementexpenses. Management expenses ratioreduced by 1.8% y-o-y from 16.5% in FY10 to 14.7% in FY11 as a result of bettercost management (lower personnel cost and absence of non-recurring professionalfees). The group's commission ratio also improved from 9.5% in FY10 to 7.7% inFY11. We believe that the group will be able to further improve its managementexpenses ratio going forward.
Positive growthexpected moving forward. We expect the group to remain profitable movingforward as the group's commitment to manage its motor portfolio has been successfuland they will also benefit from the revision in motor tariff premium rates. However,we anticipate that MMIP's business will continue to be in losses in the next yearor two and hence we are lowering our FY12 earnings estimate by 12.4% to accountfor the losses from MMIP which we estimate to be around RM2m per quarter andlower investment income due to a feeble 2012.
Sale of KIMB stillpending BNM's approval. We gather that the sale of KIMB which is stillpending Bank Negara (BNM)'s approval will most likely materialize. Should KIMBbe sold, we do not rule out a possible capital repayment to reward itsshareholders.
Maintain TRADING BUY.We maintain our Trading Buy call on Kurnia, with a fair value of RM0.68 attributing it to the potential book valueafter the potential sale of KIMB.
Source: OSK188
FY11 Results Within Expectations
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
Company Name: KURNIA ASIA BHD
| Research House: TA | Price Call: HOLD | Target Price: 0.65 |
December 20, 2011
AMMB, KAB Submits Application to Commence M&A Talks
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
Company Name: KURNIA ASIA BHD
| Research House: TA | Price Call: SELL | Target Price: 0.65 |
Finally, It's Here!
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
Company Name: KURNIA ASIA BHD
| Research House: OSK | Price Call: BUY | Target Price: 0.68 |
December 19, 2011
RHB Research maintains market perform on Kurnia Asia, FV 51c
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
KUALA LUMPUR (Dec 20): RHB Research Institute is maintaining its market peform on Kurnia Asia with a fair value of 51 sen, based on an unchanged FY12 target PER of 10 times.
The research house said on Tuesday that Kurnia Asia had submitted an application to Bank Negara Malaysia (BNM) to review a proposal to enter into an agreement with AmG Insurance for the possible disposal of its 100% equity interest in Kurnia Insurance Malaysia (KIMB).
'We believe the valuation of KIMB would range around 2.0 times to 2.5 times price-to-book value based on the recent mergers and acquisitions in the general insurance sector.
'Assuming a full cash transaction, this implies that KIMB could be sold at RM1.4 billion to RM1.7 billion based on FY2010 book value,' it said.
RHB Research said until BNM approves the deal, it is maintaining its fair value for Kurnia at 51 sen, based on an unchanged FY12 target PER of 10 times and is reiterating our Market Perform call on the stock.
Company Name: KURNIA ASIA BHD
| Research House: RHB | Price Call: HOLD | Target Price: 0.51 |
KUALA LUMPUR (Dec 20): RHB Research Institute is maintaining its market peform on Kurnia Asia with a fair value of 51 sen, based on an unchanged FY12 target PER of 10 times.
The research house said on Tuesday that Kurnia Asia had submitted an application to Bank Negara Malaysia (BNM) to review a proposal to enter into an agreement with AmG Insurance for the possible disposal of its 100% equity interest in Kurnia Insurance Malaysia (KIMB).
'We believe the valuation of KIMB would range around 2.0 times to 2.5 times price-to-book value based on the recent mergers and acquisitions in the general insurance sector.
'Assuming a full cash transaction, this implies that KIMB could be sold at RM1.4 billion to RM1.7 billion based on FY2010 book value,' it said.
RHB Research said until BNM approves the deal, it is maintaining its fair value for Kurnia at 51 sen, based on an unchanged FY12 target PER of 10 times and is reiterating our Market Perform call on the stock.
December 14, 2011
November 25, 2011
August 17, 2011
1H FY11 Driven by Investments and Lower Claims
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
Company Name: KURNIA ASIA BHD
| Research House: TA | Price Call: BUY | Target Price: 0.595 |
May 24, 2011
KURASIA - Kurnia 2011 earnings set to hit RM43m
Stock Name: KURASIA
Company Name: KURNIA ASIA BHD
Research House: OSK
Company Name: KURNIA ASIA BHD
Research House: OSK
The earnings of Malaysia's largest general insurance firm, Kurnia Asia Bhd, is set to jump to RM42.7 million in 2011 and RM61 million in 2012 on a better outlook for the sector, OSK Research said.
A lower claims ratio and stable investment income is expected to be reflected in Kurnia's first quarter results for 2011, to be announced tomorrow.
The firm is also expected to benefit from the motor premium hike which will take place from 2012 to 2015, said OSK in its research report today.
"Thus, we are upgrading our 2011 earnings outlook for Kurnia to RM42.7 million, up by 14.8 per cent from RM37.2 million previously, and the 2012 earnings to RM61 million, up by 33.8 per cent, from an earlier estimated RM45.6 million," it added.
OSK said its sensitive analysis showed that every 10 per cent increase in gross premium will bump up 2012's net profit by 0.6 per cent.
For 2011, it said, the gross premium will likely record a high single digit to low double digit growth,coming mainly from the non-motor segment in accordance with Kurnia's strategy to grow its more lucrative non-motor business.
Kurnia's management is aiming for a 30 per cent contribution from the non-motor to the gross premium portfolio in medium term as compared with 19 per cent in 2010, said OSK.
It also said the claims ratio is expected to normalise and hover around the 70 per cent level as compared with 76 per cent in 2010, after clearing up some of the old bodily injury claims filed last year.
"We expect management expenses to improve as well, due to better cost management practice. Investment income will likely remain stable with an annualised investment yield of between 5.5-6.6 per cent," it added.
OSK has put a fair value for Kurnia Asia's share price at 42 sen based on an industry average of 15 times price earning ratio. -- Bernama
A lower claims ratio and stable investment income is expected to be reflected in Kurnia's first quarter results for 2011, to be announced tomorrow.
The firm is also expected to benefit from the motor premium hike which will take place from 2012 to 2015, said OSK in its research report today.
"Thus, we are upgrading our 2011 earnings outlook for Kurnia to RM42.7 million, up by 14.8 per cent from RM37.2 million previously, and the 2012 earnings to RM61 million, up by 33.8 per cent, from an earlier estimated RM45.6 million," it added.
OSK said its sensitive analysis showed that every 10 per cent increase in gross premium will bump up 2012's net profit by 0.6 per cent.
For 2011, it said, the gross premium will likely record a high single digit to low double digit growth,coming mainly from the non-motor segment in accordance with Kurnia's strategy to grow its more lucrative non-motor business.
Kurnia's management is aiming for a 30 per cent contribution from the non-motor to the gross premium portfolio in medium term as compared with 19 per cent in 2010, said OSK.
It also said the claims ratio is expected to normalise and hover around the 70 per cent level as compared with 76 per cent in 2010, after clearing up some of the old bodily injury claims filed last year.
"We expect management expenses to improve as well, due to better cost management practice. Investment income will likely remain stable with an annualised investment yield of between 5.5-6.6 per cent," it added.
OSK has put a fair value for Kurnia Asia's share price at 42 sen based on an industry average of 15 times price earning ratio. -- Bernama
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