[%KsAk%]
Research by HLIB
Buy - TP RM4.90

"Staying on course"

From our recent discussions, management’s tone was optimistically cautious. We understand most of its businesses are chugging along well, save for the EB (deliberately pruned some of its unprofitable customers to protect margins) and motor segments (slower growth from BJAK but we are not overly worried since clients here have higher claims risk, in our view). That said, retakaful rates have stabilized and the risk of cash call is limited under the new risk-based capital framework exposure draft. Overall, our estimates were kept and we still believe STMB’s risk-reward profile is skewed to the upside as it is undervalued, trading at -1.0SD P/B. Retain BUY and GGM-TP of RM4.90, based on 1.85x FY25 P/B.

Analyst:
Chan Jit Hoong, CFA, CPA
[%HWBb%]

$KLSE-TAKAFUL
Research by HLIB
Buy - TP RM4.90

"Staying on course"

From our recent discussions, management’s tone was optimistically cautious. We understand most of its businesses are chugging along well, save for the EB (deliberately pruned some of its unprofitable customers to protect margins) and motor segments (slower growth from BJAK but we are not overly worried since clients here have higher claims risk, in our view). That said, retakaful rates have stabilized and the risk of cash call is limited under the new risk-based capital framework exposure draft. Overall, our estimates were kept and we still believe STMB’s risk-reward profile is skewed to the upside as it is undervalued, trading at -1.0SD P/B. Retain BUY and GGM-TP of RM4.90, based on 1.85x FY25 P/B.

Analyst:
Chan Jit Hoong, CFA, CPA
jhchan@hlib.hongleong.com.my

$TAKAFUL / 6139 (SYARIKAT TAKAFUL MALAYSIA KELUARGA BERHAD)