KUALA LUMPUR (Jan 10): RHB Research Institute is maintaining its Underperform call on LPI Capital with an unchanged fair value of RM11.60.
It said on Tuesday that LPI’s FY11 net profit of RM154.5 million (up 12% on-year) was in line with its and consensus expectations.
RHB Research said the FY11 earnings growth was driven by the 20.1% on-year growth in gross premiums, slightly higher than its assumption of an 18% growth.
However, FY11 claims ratio of 48.9% was higher versus FY10 of 47.7%, although slightly lower than its own projections of 49.5%.
“Our FY12-13 earnings forecasts trimmed slightly by 0.1%-1.7% after: 1) imputing FY11 gross premium numbers, thus resulting in lower FY12 gross premiums; and 2) slight adjustments in our key expenses assumptions. We also introduce our FY14 earnings forecast,” it said.
It said on Tuesday that LPI’s FY11 net profit of RM154.5 million (up 12% on-year) was in line with its and consensus expectations.
RHB Research said the FY11 earnings growth was driven by the 20.1% on-year growth in gross premiums, slightly higher than its assumption of an 18% growth.
However, FY11 claims ratio of 48.9% was higher versus FY10 of 47.7%, although slightly lower than its own projections of 49.5%.
“Our FY12-13 earnings forecasts trimmed slightly by 0.1%-1.7% after: 1) imputing FY11 gross premium numbers, thus resulting in lower FY12 gross premiums; and 2) slight adjustments in our key expenses assumptions. We also introduce our FY14 earnings forecast,” it said.
