Lpi Capital Bhd

Much has been said in the media about Public Bank Bhd’s (PBB) rare corporate exercise involving the proposed acquisition of 175.9 million shares in LPI Capital Bhd at an offer price of RM9.80 per share from the estate of the late Tan Sri Dr Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd (Estate), announced last month.

Analysts are mostly positive about LPI Capital Bhd’s prospects, following the recent acquisition of the insurer’s 44.15% stake by Public Bank Bhd.

$LPI / 8621 (LPI CAPITAL BHD)
Research by Kenanga

TS Tong in his column on the edge disposed $LPI / 8621 (LPI CAPITAL BHD) and recycled the capital to purchase $HARBOUR / 2062 (HARBOUR-LINK GROUP BERHAD) at RM 1.50

very interesting

Public Bank Bhd (PBB) took an important step to align the future shareholding of the estate of the late Tan Sri Teh Hong Piow and also solidify its future with the acquisition of LPI Capital Bhd. Public Bank chief executive officer and managing director Tan Sri Tay Ah Lek answers some questions posed by StarBiz on the moves made last week.

KUALA LUMPUR: The offer price of RM9.80 per share by Public Bank Bhd is seen as low, given LPI Capital Bhd’s strong earnings growth and the favourable market conditions, said CIMB Securities Sdn Bhd.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: The share prices of Public Bank Bhd and LPI Capital Bhd opened lower today following the bank's announcement of its plan to acquire a 44.15 per cent stake in LPI.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Public Bank Bhd and LPI Capital Bhd, which resumed trading today after being suspended for two days since Oct 9, traded lower on their resumption of trading.

KUALA LUMPUR: Public Bank Bhd, LPI Capital Bhd, Top Glove Corp Bhd Sunway Bhd, KJTS Group Bhd, Sapura Resources Bhd and MGB Bhd are among the stocks to watch today.

KUALA LUMPUR: Public Bank Bhd is buying a 44.15 per cent stake in LPI Capital Bhd from the estate of the late Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd (ConTeh) for RM1.72 billion cash.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Public Bank Bhd has proposed to acquire a strategic stake of 44.15 per cent equity interest in LPI Capital Bhd  from the estate of the late Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd  for RM1.72b.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: Public Bank Bhd is acquiring a 44.15% stake in LPI Capital Bhd from the estate of the late Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd (ConTeh) for RM1.72bil cash, or RM9.80 per share.

KUALA LUMPUR: Public Bank Bhd has proposed to acquire a strategic stake of 44.15 per cent equity interest in LPI Capital Bhd from the estate of the late Tan Sri Teh Hong Piow and Consolidated Teh Holdings Sdn Bhd for RM1.72b.

© New Straits Times Press (M) Bhd

Analysts are keeping their “buy” calls on both Public Bank Bhd and LPI Capital Bhd, pending an announcement today.

$LPI / 8621 (LPI CAPITAL BHD)
LPI would probably see a steep rise in share price, as rumours have it that Public Bank is going to take-over LPI.

What a shame for me, as I've been holding LPI for years, only to dispose recently at a loss instead of possible gain after this.

But such is the life of the layman investor.

KUALA LUMPUR: RHB Research said a possible move by Public Bank Bhd to take over LPI Capital Bhd, could value it at RM5.3 billion.

© New Straits Times Press (M) Bhd

KUALA LUMPUR: RHB Investment Bank Bhd (RHB IB) said the trading suspension requested by Public Bank Bhd and LPI Capital Bhd of their respective shares lends credence to media reports of a deal being struck.

KUALA LUMPUR: Shares of Public Bank Bhd and LPI Capital Bhd will be suspended from 9 am tomorrow, pending a major announcement, separate filings from the two companies to Bursa Malaysia said on Tuesday evening.

© New Straits Times Press (M) Bhd

Ahead of a surprise media briefing by Public Bank Bhd this Friday, it is speculated that the third-largest banking group by assets is looking to acquire the stake of the Teh siblings in LPI Capital Bhd.

KUALA LUMPUR: Trading of Public Bank Bhd and LPI Capital Bhd shares will be suspended from 9 am on October 9, pending the release of a material announcement.

$LPI / 8621 (LPI CAPITAL BHD)
Research by Kenanga
OUTPERFORM – TP RM15.00

"More Unloading of Reserves”

LPI’s 1HFY24 results met expectations from further reversals of flood reserves of prior years. While these are anticipated to ebb in FY25, LPI may still be favoured for its leading position in the competitive fire class insurance segment. This is particularly supported by backing from Public Bank. Dividend yields of c.6% also appear highly compelling for an insurer. Maintain OUTPERFORM and TP of RM15.00.

Analyst:
Clement Chua
clement.chua@kenanga.com.my

$LPI / 8621 (LPI CAPITAL BHD)
Research by MIDF
BUY – TP RM14.52

"2QFY24 Results: More Normalised Investment Returns”

• 6MFY24’s Core NP of RM179m was Within/Within our/street forecasts: 52%/50% of full-year forecasts
• Core themes: (a) GWP growth still steady, (b) Improved combined ratio, (c) Investment income normalisation
• Forecasts unchanged
• Maintain BUY | Unchanged TP of RM14.52 | based on an unchanged FY25F P/BV of 2.42x

Analyst:
Samuel Woo
samuel.woo@midf.com.my

Change in Boardroom - MISS CHAN KWAI HOE

Change in Audit Committee - MISS CHAN KWAI HOE

PETALING JAYA: LPI Capital Bhd expects the year ahead to remain challenging, amid uncertainties both domestically and internationally.

$LPI / 8621 (LPI CAPITAL BHD)
Research by MIDF
Buy – TP of MYR 14.52

“A Flame Reignited”

We initiate coverage on LPI with a BUY recommendation and a TP of RM14.52 based on FY25F P/BV of 2.42x. This represents an upside of 18.2% of LPI’s current price of RM12.28. We derive this P/BV via an LTG of 4.0%, COE of 8.7% and FY25F ROE of 15.4%.

Analyst(s):
Samuel Woo
samuel.woo@midf.com.my

Despite LPI Capital Bhd’s subdued sentiment from the industry’s de-tariffication in the fire class insurance segment, Kenanga Research says the group has potential to remain a leading player in the market.

$LPI / 8621 (LPI CAPITAL BHD)
Research by Kenanga
Outperform – TP of MYR15.00

“Fewer Reserves Needed”

LPI’s 1QFY24 results beat expectations as net claims appeared lower following reversal of past claims provisions, prompting us to raise our FY24F-FY25F earnings by 13%-4%. We see that there could be more intensive competition especially in the fire class insurance segment, but are not overly deterred by LPI’s position, thanks to their backing from a leading bank. We maintain OUTPERFORM call but raise our TP to RM15.00 (from RM14.70) as we roll over our valuations.

Analyst(s):
Clement Chua
clement.chua@kenanga.com.my

KUALA LUMPUR: LPI Capital Bhd, whose bottom line rose a notable 37% in the first quarter of 2024 (1Q24), says it will focus on sustainability efforts within an increasingly competitive market environment.

$LPI / 8621 (LPI CAPITAL BHD)