KUALA LUMPUR (March 28) : SYARIKAT TAKAFUL MALAYSIA BHD [] rose 4% or 12 sen to RM3.02 after CIMB Investment Bank Bhd said the Islamic insurance firm should trade higher at RM4.60 in anticipation of its growth potential.
In a note on Wednesday, CIMB said Syarikat Takaful, deemed an undervalued stock, may grow at a faster pace than the industry’s expansion rate of 20% within the next five years. This will be, partially, helped by the insurer’s venture in Indonesia, according to CIMB.
“The average daily trading volume for Syarikat Takaful is only 192,000 shares year-to- date. We believe that this is mainly due to the lack of coverage by analysts and hence, the poor awareness of the group’s bright earnings prospects,” CIMB said.
The research house said Syarikat Takaful may register an earnings per share growth of 25% in financial years ending Dec 31, 2012 and 2013, helped by the insurer’s family and general schemes beside its stable claims ratio.
In a note on Wednesday, CIMB said Syarikat Takaful, deemed an undervalued stock, may grow at a faster pace than the industry’s expansion rate of 20% within the next five years. This will be, partially, helped by the insurer’s venture in Indonesia, according to CIMB.
“The average daily trading volume for Syarikat Takaful is only 192,000 shares year-to- date. We believe that this is mainly due to the lack of coverage by analysts and hence, the poor awareness of the group’s bright earnings prospects,” CIMB said.
The research house said Syarikat Takaful may register an earnings per share growth of 25% in financial years ending Dec 31, 2012 and 2013, helped by the insurer’s family and general schemes beside its stable claims ratio.
