Koon Yew Yin's Blog
MNRB is underrated - Koon Yew Yin
Koon Yew Yin
Publish date: Fri, 19 Mar 2021, 02:45 PM
Koon Yew Yin
0 1,446
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
MNRB is the only reinsurance company in Malaysia and holds the monopoly of reinsurance.
There are 21 insurance companies in Malaysia and it is mandatory and compulsory for all insurance company in Malaysia to reinsure 10-25% (depending on class and size of risk) of their business with MNRB.
PNB controlled 12.8% and Amanah Saham Bumiputra controlled 44.1%, totalling 57 % of the company and 43% of the total issued shares are in the open market.
MNRB Holdings Bhd is a reinsurance provider as reinsurance as per the takaful system according to the sharia law. It provides reinsurance services in the areas of fire, marine, motor, miscellaneous, and family retakaful. The company is also engaged in investment holding business and mainly operates in Malaysia and United Arab Emirates.
MNRB is a subsidiary of PNB, engages in insurance and reinsurance businesses. It underwrites various classes of general reinsurance and manages MMIP (Malaysian Motor Insurance Pool), providing motor insurance to vehicle owners who are unable to obtain cover for their vehicles. MNRB commands 25% of market share through treaty. Apart from underwriting profit, MNRB derived other profit from portfolio investment.
There are 21 general insurance players in Malaysia and these are the top 10 insurance companies in Malaysia:
1. Allianz;
2. AM Kurnia;
3. Axa Affin;
4. Chubb;
5. Etiqa;
6. London Pacific;
7. Liberty;
8. MSIG;
9. Tokio Marine;
10. Zurich.
That means MNRB is sure to make profit like a bank or other well-established companies that are sure to make profit. In fact, the Covid 19 pandemic is affecting people’s movement and almost all the listed companies. MNRB is one of the exceptions.
MNRB’s latest EPS for quarter ending December was 6 sen and 5 sen for its previous. Since it has sure profit growth, it is safe to assume its annual EPS will 4 times 6 sen = 24 sen. Its last traded price is Rm 1.33 divided by 22 sen = 5.5 PE ration.
Share price divided by earning is called price earnings ratio, which is the best measure of rating any stock.
PE of insurance companies comparison
|
Name |
Price Rm |
Latest EPS |
X 4 = Annual EPS |
PE |
|
MNRB |
1.38 |
6 sen |
24 sen |
5.8 |
|
LPI |
13.60 |
23.9 sen |
95.6 sen |
14.2 |
|
MBSB |
68 sen |
1.42 sen |
5.68 sen |
12 |
|
London Pacific |
Rm 13.60 |
22.9 sen |
92 sen |
14.8 |
|
AM Kunia |
Rm 2.71 |
6.5 sen |
11.5 sen |
10.4 |
|
Takaful |
Rm 4.98 |
12.42 sen |
49.7 sen |
10.0
|
Conclusion: The PE of insurance companies comparison shows that MNRB is the cheapest in term on PE ratio. This is so ridiculous because MNRB has the monopoly of selling reinsurance and all the 21 insurance companies have to buy 10-25% of reinsurance from MNRB. In fact, MNRB with its inherent advantage, should deserve a much higher rating than any one of the leading insurance companies. Currently it is selling at the cheapest PE.
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Discussions
1 person likes this. Showing 50 of 70 comments
Say...This kind of analysis? really?... PE should be like that.. should be like this...???... come on...
2021-03-19 22:53
KYY is the most respected super duper master Sifu from Glove glory days his glove followers adore him
2021-03-19 23:24
Be careful! Soon he will buy call for any and every structured warrant. Hahahaha.
He has just printed out list of Stocks with *Stamp Duty exempt* for 2021. Then say all undervalued. LOL!
Joker.
_______________________________
Posted by gorengkitty > Mar 19, 2021 5:01 PM | Report Abuse
EH UNCLE! u buy call again ah <3
2021-03-19 23:33
abang_misai I sold all dominan at lost. will never trust him again.
15/03/2021 3:01 PM
abang_misai Timely call for this undervalue stocks. Dividend year after year. Low PE. Obviously growth around 30% per year. Thanks uncle for this recommendation
19/03/2021 2:52 PM
Yr roti canai is as good as KYY.....lol
2021-03-20 06:32
Geezer sure knows how to get traders to push his purchase up to run in a week with profit of at least 30%. Where to find such a good strategy in this world. Every week profit 30%, haha due to greedy traders chasing the share up.
2021-03-20 11:22
Kps/dominant/mnrb what else old man?Old man don't be so such a dick u put allianz as No1 n allianz PE lower than Mnrb...how old man?
2021-03-20 12:26
his entry price? Definitely will not be your price. Just like he is climbing a mountain. Few more steps ahead to the peak and he could get a box of money located there. But he needs all of you to follow behind to push him up or pass him some equipments. Once he got what he wanted, he will use the staircase located at the other side of the mountain to cabut first, while you will take his place at the high with nothing left for the rewards for reaching there..
2021-03-20 13:43
Kps is most underrated.
Dominant is better than kps
Mnrb is slightly better than dominant
So no 1 is ? xD
2021-03-20 13:46
MNRB underrated
KPS underrated
Dominant underrated
Insas underrated
OSK underrated
etc etc etc underrated
Verdict : the WHOLE mkt is underrated !
2021-03-20 16:06
MNRB announced its 31.12.2020 QTR results on 25.2.2021.
Mr Koon could have started to accumulate from below RM1.00. There were 5 trading days he could do that.
Perhaps after he could have accumulated enough and decided to share his super underrated gem with I3 readers when the price is around RM1.35, he released his recommdation to the world.
He likes to use PE 10 as his target price estimation which is RM2.40.
The question is will he start to sell now as he could already be making 40% returns in less than a month or hold until the stock hit RM2.40??
To know the answer, one needs to be reminded that when he kept recommend the world to buy Supermax when it was going down; he actually [he said it himself] sold it. What a kind gentleman he is. Truly remarkable.
2021-03-20 17:02
Tak apa lah. Uncle will show his power comes next Monday. Believe it or not, it’s up to you.
2021-03-20 17:18
Haha,
If Koon like those undervalued/underrated stocks he can just ask calvintaneng.
2021-03-20 17:36
Haiyah forget it lah, what price uncle kyy bought mah...!!
Ask yourself at this price MNRB has sufficient margin of safety for u to profit or not mah ?
MNRB already reported strong 4 quarterly latest profit mah...!!
Thus Raider highly agree MNRB is highly undervalue mah...!!
U think uncle KOON want to sell like a cheapskate at current price to u meh ?
Based on General Raider analysis that usually from past historical records & behavior uncle koon, wants to make 100% on its share investment, that means TP rm 1.80 mah!!
Even Tp Rm 1.80 MNRB still very cheap mah...!!
Have confidence lah....just join the party early loh...!!
2021-03-20 18:04
Think carefully lah....mnrb rights issue 90 sen....now above Rm 1.40 PNB want to sell some lock in some...to hedge their bets mah...!!
It is bcos of PNB selling, KYY & gangs can collect MNRB at reasonable undervalue price with very good profit potential margin mah....!!
Thus MNRB still got big opportunity,to go up further loh, U think PNB do not realise MNRB is highly undervalue meh ??
Of course they also know mah, they just happy that Uncle Koon had the joined the party by invitation or just by gate crash mah...!!
It is likely the PNB sells will eventually stop, thus the price rise of MNRB is likely be sustainable loh!!
Just follow uncle Koon to the party lah...!!
2021-03-20 18:17
Below info are likely intelligent reasons why PNB sold some MNRB loh!!
By getting more liquidity & participations MNRB can be well accepted & share price will move up much stronger mah...!!
Posted by Johnzhang > Mar 20, 2021 11:05 AM | Report Abuse
Is PNB and ASB thinking MNRB is now over- valued and hence selling down?
Is an Insurance company of PE 5-6 and hold the sole reinsurance license and in a growing Takaful insurance segment overvalued at this price ?
If nos are the answers, we must think rationally what drive the action of PNB/ASB (especially it have resulted share price increase)?
Who are the buyers ? Traders and speculators ?
Is PNB and ASB who collectively hold about 57% in MNRB paring down to provide liquidity and efficiency for foreign and local institutions' to buy in?
Is PNB and ASB action is trying to get fair valuation for MNRB share price ?
We must know that institution investors don't buy illiquid stock ( lack of free-float) and too tightly held stock until the controlling shareholders pare down.
I remember PNB has said not too long ago that it is not their investment bestrategy to have management control in the companies they invested and therefore intend to pare down in companies which they have high stakes.
Food for thought!
2021-03-20 18:25
lu pakai otak & think lah...!!
Raider is always against KYY mah....then why raider support this KYY recommendations leh ??
Bcos this is a very good profit recommendations....Raider would not be honest if do not support this MNRB investment at current attractive price loh...!!
Jokes aside lah....be honest & truthful with ourselves when we want to make monies mah!!!!
Posted by arv18 > Mar 20, 2021 6:28 PM | Report Abuse
how much did you sell you back-side to kyy for "stockraider"?
you should stick to promoting the DEAD stock Insas
famous for your lousy stock picks.
you & kyy two sides of the same rusty coin.
2021-03-20 18:35
This is a very good observation & conclusion loh!!
It is a goldmine profit making opportunity coming mah!!
Posted by Johnzhang > Mar 20, 2021 10:39 AM | Report Abuse
PNB + ASB sold a total of 11.1 mil share on the 1st 3 days of this week consecutively;
On 15/3. 1.59 mil share
On 16/3. 3.62 mil share
On 17/3. 5.91 mil share.
Judging by the incrementsl Volume of disposal in from 15/3 tob17/3 , I suspect large amount of share ( may be another 10-12 mil shares) may have bbeen disposed on 18/3 (Thursday) and 19/3 (Friday). If my guess is somewhat correct, total disposal on this week would be well over 20 mil shares!
MNRB share price closed at $1.27 last Friday (12/3). It closed at $1.42 this Friday (19/3). It is clear that the huge disposal has even resulted its share price to go up by about 12%! KYY only came out to say something on NNRB this Friday afternoon. Food for thought!
2021-03-20 18:39
He knew nothing about insurance business
If so attractive fund manager enter long....... time ago before him
Let him get burn again and don’t get burn for following him
2021-03-20 22:47
don't call kyy a sifu. he has no quality as sifu. sifu always gives a good teaching to his followers with selfless motive and good heart. in kyy these qualities are lacking.
2021-03-20 23:09
abang_misai Saya cari makan mah.... charlesT pun sama cari makan mah
20/03/2021 4:51 PM
True also lah...u love roti canai i love chicken rice
2021-03-21 09:00
Rubbish lah....physically impossible to get average cost of 85 sen loh!
Raider so panlai average cost already Rm 1.10 mah....most likely kyy average cost around the same mah...!!
Posted by positiontrader > Mar 21, 2021 1:04 AM | Report Abuse
KYY average cost is around 85sen
The last price is 1.42sen i.e. up 70%
Most likely you can only get in at not less than 1.42
Buying is easier; but selling with a good reward could be tough at this price, unless the syndicate had cornered the stock
2021-03-21 13:03
Wrong lah...KYY is a great entrepreneur 1st........and a good share trader 2nd mah!!
Do not forget KYY founded or one of the founder of listed companies IJM, Gamuda, Mudajaya & Ipmuda mah...!!
Alot of KYY wealth come from ownership of these companies which he realized when he retired later.
Active Share investment & trading come later mah!
Posted by Richard123456 > Mar 21, 2021 1:13 PM | Report Abuse
haiya, kyy only know how to trade share 、he do not how to run business lah
2021-03-21 13:20
CharkesT before, u call others retard when their comments are kind, read your comment , only a retard will write such thing
2021-03-22 21:25
No wonder old con can play the same monkey tricks again n again.
Still got lots of retaxds here....sigh
2021-03-22 21:32
ada saham yang lagi underated? masyahallah. si tua pasang perangkap lagi
2021-03-22 21:40
CharkesT (so stu#p) u cant even differentiate who writes who comment, KYY writes the articles, readers make the comments Some readers are hurt but they still write with respect, there is no need to show off with low life words. We make mistakes trusting such articles but no need to call another reader names when that reader did not use hard words on the writer. You dont know what is in the other reader's mind. Readers should find a way to time and beat KYY to his game or dont support his call. There will always be another KYY, another KYY. What is more important is our decision and action not the writer of an article
2021-03-22 22:52
Only few PLP retaxds like u will still write positive comments on his post....
U go to count yrself....lol
2021-03-23 08:19
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