Koon Yew Yin's Blog
MNRB has additional profit daily - Koon Yew Yin
Koon Yew Yin
Publish date: Wed, 24 Mar 2021, 11:59 AM
Koon Yew Yin
0 1,453
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 sure to gain additional profit daily because every day there are new construction of infrastructure and properties. Every day there are new motor vehicles on the roads. All these new constructions, properties and motor vehicles require insurance and reinsurance.
The construction contractors have to buy accident insurance to protect workers during construction. When the properties are completed, the property developers have to buy fire insurance and all risk insurance. Moreover, new property owners of house, shops etc have to buy insurance. As a result, MNRB has additional profit daily.
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.
Its annual EPS was 24 sen. Based on PE 10, MNRB should be selling Rm 2.40.
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Discussions
Be the first to like this. Showing 24 of 24 comments
Alhamdulilah. Timely publication of article. Cepat push tolong kawan yang telah sangkut di 1.47
2021-03-24 13:16
@abang_misai do you know why you got sangkut at RM1.47? Is is bcos of last Friday greed?
2021-03-24 13:29
If KYY says undervalued, I will not buy. If KYY says overvalue, I will buy.
Tak percaya this old man anymore.
2021-03-24 14:02
the more old cock writes...stay far away from tat counter...awaiting to throw on you....jaga..jaga kawan!
2021-03-24 15:01
This Geezer is desperate. Begging for support. Why so in need of money at this age? Just enjoy your golden years with your family and don't come here to get regular curses. Not good for your KARMA.
2021-03-24 15:52
so coincidence, facts
the counter so call KPS underrated date, price was peak and start going down. MNRB undervalue, price also start going down. Dominant shoot up fast and also going down.
I don't no why, it look like you are only allow to chase one day or 3days after these so call undervalue promotion.
To many fans of kyy, you really need to learn. Trust nobody, you need to plan you entry and exit point. No to chase high , chase anyone's suggestion, because you did not pay him for advice.
The article come out was the editor thought, maybe with good intentions we do not know. You judge it. Wish you all the best, don't blame, you will learn.
2021-03-24 15:55
easy way to cheat hard earn money from people during difficult time..what kind of human is this?
2021-03-24 17:17
those who know how to follow will benefit in the end. those who don't will curse at the start. one need to remember uncle has a fundamental bias, so need to use TA if following.
2021-03-24 17:46
Since the major shareholder PNB is still selling to take profit and KYY is heavilly promoting ; perhaps it is a good idea to wait below RM1.00 to buy.
When KYY says undervalue, think twice!!
2021-03-24 17:51
diao... who is not making profit daily? Supermax also making profit daily, see how it went now
2021-03-25 07:59
"MNRB is sure to gain additional profit daily because every day there are new construction of infrastructure and properties. Every day there are new motor vehicles on the roads. All these new constructions, properties and motor vehicles require insurance and reinsurance."
KYY forgot to say, everyday also MNRB have to pay out claims...they have to fork out a portion of claims from the industry
2021-03-25 11:38
Kyy is desperate. I think he loss a lot of money..
POOR FELLA...
Always think of people when you want to dump stocks!!
2021-03-25 12:27
Okay means old fox KYY has accumulated enough and will orchestrate a uptrend for him to dump his portion when the second or third articles follow...
2021-03-26 09:10
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Sell MNRB !!
2021-03-24 12:56