KUALA LUMPUR: ALLIANZ MALAYSIA BHD [] shares rose on Thursday, April 14 following an upbeat report by CIMB Equities Research that said the company offers the only exposure to a well-managed Malaysian composite insurer that is controlled by an established international insurance group.
At 11.15am, Allianz was up 29 sen to RM5.28 with 213,600 shares traded.
The research house Allianz's key attractions were (1) its well-managed general insurance business with above-industry underwriting margin, and (2) the expected exponential expansion of life insurance contributions.
CIMB Research said Allianz was also set to ride on the upward adjustment of motor tariffs starting next year.
'Assuming a 40-50% discount to the P/E implied in our target price for AIA, we arrive at a target P/E range of 8-9.6 times, which implies a value of RM8.20-9.80 for Allianz or upside of 64-97%.
'Despite its strong fundamentals and bright outlook, the stock is trading at only 6x P/E and 1.2x P/BV. Its only drawback is its low liquidity due to lack of newsflow and coverage by analysts,' it said.
At 11.15am, Allianz was up 29 sen to RM5.28 with 213,600 shares traded.
The research house Allianz's key attractions were (1) its well-managed general insurance business with above-industry underwriting margin, and (2) the expected exponential expansion of life insurance contributions.
CIMB Research said Allianz was also set to ride on the upward adjustment of motor tariffs starting next year.
'Assuming a 40-50% discount to the P/E implied in our target price for AIA, we arrive at a target P/E range of 8-9.6 times, which implies a value of RM8.20-9.80 for Allianz or upside of 64-97%.
'Despite its strong fundamentals and bright outlook, the stock is trading at only 6x P/E and 1.2x P/BV. Its only drawback is its low liquidity due to lack of newsflow and coverage by analysts,' it said.
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