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.
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.
