https://www.thestar.com.my/business/business-news/2024/10/12/takaful-malaysia-eyes-rm10mil-in-premiums-for-kaotim-car-and-kaotim-motor

PBB is acquiring LPI at PE of 12.41.

Based on Takaful to-date annualised EPS of 0.4668.

At PE of 12.41, Takaful is valued at RM5.79.

Conservatively, you can apply
10% discount = RM5.21
20% discount = RM4.63

Personally i wouldn't do that because Takaful is a growing company, at a better rate compared to LPI.

BP says weak refining margins to hit Q3 profit

https://www.thestar.com.my/business/business-news/2024/10/11/bp-says-weak-refining-margins-to-hit-q3-profit

It will break RM4.00 for sure.

Two sinochem oil refineries declared bankrupt as margins plunge

https://theedgemalaysia.com/node/726927

All i could say the info Sslee provided are helpful

Indeed crack spread has gone down.

This is very helpful. TQ

Sslee, would you share your knowledge about crack spread, or any website that i could refer to? I wish to learn more about this. TQ

Insurance upcycle mode and 40th anniversary year

wait for QR and sit tight, don't miss the boat

MNRB 2024 annual report excerpt which was released on 31/7/2024.

Overall, Malaysia’s insurance and takaful industry is poised
for sustained premium growth, driven by economic
recovery, increased penetration, and growing demand for
digital services. While challenges persist, the industry’s
long-term prospects remain positive.

https://theedgemalaysia.com/node/722337

Services set for strong rebound

During 2Q2024, CIMB said the services sector — which accounts for more than half of Malaysia’s economic output — is poised for a "stellar rebound", exceeding the advance estimate of 5.6% year-on-year growth.

The volume index of services, a proxy for private sector services, rose 6.7% year-on-year in 2Q2024, led by the insurance sector that recorded its first expansion in nine quarters, the research house noted while also flagging improvement in consumer-facing industries.

Insurance industry will enter upcycle mode soon, this year premiums are all increasing.

https://theedgemalaysia.com/node/722225
https://www.youtube.com/watch?v=F6TjtgJNki4
https://theedgemalaysia.com/node/716702

Having observed Sslee for a few years now, i must say he is a sensible person.

let's just look forward to the next few quarters' result, and also the end year dividend of 40th anniversary

would you mind to share which company with better dividend? i could use some study, thanks

This year is Takaful 40th year anniversary since inception. Based on their financial strength, it is reasonable to expect something big end of this year!

Takaful is backed by Bank Islam, every year revenue and net profit go up steadily, steady growth, steady dividend and is operating in a country where the muslim population increases every year. And takaful licenses are limited in Malaysia, so it's protected so to speak.

Where do you find a steady/growth business like this lying around at PE 9? It will go up for sure. Their investment return will increase in the coming quarters too, at higher yield which they invested 1-2 years ago that is now maturing.

TAKAFUL’s 1QFY24 results met expectations. With sustained demand for its products, we believe the stock could be further highlighted for its relatively lower exposure to detariffication spurred competition. Maintain our forecast but raise our TP by 13% to RM4.35 as we roll over our valuation base year and upgrade it to OP (from MP). We feature TAKAFUL as one of our Shariah Top Picks.

gogogo Takaful!!!

for sure it will be good. because insurance premiums are rising, investment return will reflect higher yield bond, good car sales, civil servant salary increments, takaful newly launched KAOTIM and etc... all pointing to good coming quarterss

https://www.youtube.com/watch?v=F6TjtgJNki4

https://www.thestar.com.my/business/business-news/2024/05/10/ocbc-posts-record-q1-profit-makes-us1bil-bid-to-take-great-eastern-private

OCBC is taking Great Eastern private, valuing GE at S$12.12 billion.

Based on GE 2023 Net Profit @ $774.6m, PE is 15.6

Takaful being a market leader, with EPS of about 0.42, PE is only about 11.

With many insurance companies report high profit and GE privatisation, something big is happening in the insurance industry.

Come on, do you really look at the fundamentals?

The quarterly net profit has been steadily dropping. The earning per share (EPS) of the latest quarter is 0.0138.

If you multiply this x4, the annual EPS is 0.052

The share price now is RM0.79. If you divide earning/price, your return is 6.6%. That is earning, dividend would be way lesser.

What is so undervalue or oversold at RM0.79 per share? In fact, KWSP give about 6% return a year. And this is clean dividend.

This company net profit rely too heavily on 1 major customer. The balance sheet is average. If you buy at RM0.79 and think it's cheap or oversold, but you get only 6.6% earning per year, which is not even dividend.

Please, please don't mislead others. Go and research deeper, you will understand why it's expensive at this price.

If you read all the available facts, the Company is expanding in 3-phase masterplan for steel pipes.

Phase 1 has been completed and commenced operation since 2nd half 2019. Phase 1 facilities can produce up to 5,000 tonnes max per month = 60,000 tonnes per year. As of Dec 2020, it was running at 60% = 3,000 tonnes per month = 36,000 per year.

From the available facts (Source: https://www.theedgemarkets.com/article/leon-fuat-ride-expansion-plans-...), conservatively at 60% utilization rate, it can generate about 100m revenue per annum. Assuming at conservative profit margin of 12-15%, factor in price hike whatever you think likely, it can generate easily 12m-15m per annum at ONLY 60% utilisation rate.

Now think about:
1) steel price hike
2) limited supply now local production at 10% workforce
3) car and house HOC tax exempt until year end
4) neighboring countries spending on infrastructure to stimulate their economies (based on Keynes model)
5) manufacturing/automation export increase (Source: https://www.theedgemarkets.com/article/malaysias-april-2021-exports-63...) @ manufacture of metal (+RM1.3 billion); and iron and steel products (+RM1 billion)

most importantly:
7) Phase 2 of the masterplan is underway and expecting operation from Q1 2023. You can easily calculate
Phase 1 @ 60,000 tonnes capacity p.a.
Phase 2 @ atleast 60,000 tonnes capacity p.a.
Phase 3 @ after completion of Phase 2

i think all the above are available published facts.

in the next few months probably until year end, local steel prices will continue to hike again. if you think about it, steel industry is allowed to operate at only 10% capacity only, it will create a really big gap of pent-up demand VS available supply. the gov also has extended SST exemption on cars until year end, steel demand will be big, but supply will be very limited, steel price hike is bound to happen...

The facts below are available to every investors. You just need to look for the answers yourself and think about it.

Ewein Annual Report 2016 - Financial Statement under REVENUE:
Goods sold less discounts and returns @ 39,216,973
Property development revenue @ 28,588,293

Ewein Annual Report 2015 - Financial Statement under REVENUE:
Goods sold less discounts and returns @ 41,694,828
Property development revenue @ 39,793,152

The property development revenue comes from their first and ONLY development project in Penang. It's called City of Dreams. And this project has not been moving for a long time. Take a drive down to the project, speak to the neighbouring residents and check with the local council on approvals and etc, you will find answer for yourself. To me, property development revenue is delusional. Based on the above figures, you might want to do some thinking on your own. What is the real earnings of the company.

In my opinion, this is their first project. This company hasn't got any experience in construction, atleast not yet. Property market is bad, it is not easy to sell. What's worst is the project is not moving. The company took into consideration the deposits paid by the purchasers into their revenue. If the project is not completed, or delayed, there will be serious repercussion to their revenue in future earnings.

Also, you will need to analyze the earnings of their core business. Is it increasing, or decreasing? That's what i look for because it's their core, it is the very business which they have spent the lifetime of the company on, before they took up property development.

The share price has been dropping not because of retail investors selling. It is due to selling by fund managers and institutional investors who analyze the company deep down to its bone.

Just a piece of my own research for sharing.