♦ 1HFY12/10 results below expectations. 1HFY12/10 net profit of RM27.1m (-60.1% yoy) was below expectations, accounting for 27% and 23% of our and consensus full-year forecasts respectively. We believe the lower-than-expected earnings were mainly due to: 1) slower-than-expected premium growth; 2) higher increase in unearned premium reserves; 3) higher management expense ratio; and 4) higher effective tax rate.
Kurnia Asia Berhad : Below Expectations - 01/09/2010
Showing posts with label Kurnia Asia. Show all posts
Showing posts with label Kurnia Asia. Show all posts
Wednesday, September 1, 2010
Monday, August 9, 2010
Kurnia Asia Berhad : Proposed Private Placement - 09/08/2010
♦ Proposes 10% private placement. Kurnia announced that it is planning to
undertake a 10% private placement of its shares, which would increase its
share capital to 1.65bn shares of RM0.25 each (from 1.5bn previously). The
shares will be allocated to institutional investors who will be identified at a
later date.
Kurnia Asia Berhad : Proposed Private Placement - 09/08/2010
undertake a 10% private placement of its shares, which would increase its
share capital to 1.65bn shares of RM0.25 each (from 1.5bn previously). The
shares will be allocated to institutional investors who will be identified at a
later date.
Kurnia Asia Berhad : Proposed Private Placement - 09/08/2010
Corporate Highlights - 09/08/2010
♦ Shifting Trends
Market Update : Potholes And Speedbumps
♦ Notion Vtec
Briefing Update : Limited Visibility
Corporate Highlights - 09/08/2010
Market Update : Potholes And Speedbumps
♦ Notion Vtec
Briefing Update : Limited Visibility
Corporate Highlights - 09/08/2010
RHB Equity 360° - 9 August 2010 (Market, Notion, Kurnia; Technical: CBIP, HSL)
Top Story : Shifting Trends – Potholes and speedbumps
Market Update
- The results season thus far has been relatively bumpy in our view with major potholes for some companies (Notion Vtec), while others have warned of speedbumps ahead (Kossan). Some results have come in within expectations (e.g. Faber and Amway) or above (e.g. Unisem). We expect the remaining results to be relatively mixed, although investors should be wary of more potential earnings disappointments for some
sectors, which are not yet reflected in the share price performance over the last month.
RHB Equity 360° - 9 August 2010 (Market, Notion, Kurnia; Technical: CBIP, HSL)
Market Update
- The results season thus far has been relatively bumpy in our view with major potholes for some companies (Notion Vtec), while others have warned of speedbumps ahead (Kossan). Some results have come in within expectations (e.g. Faber and Amway) or above (e.g. Unisem). We expect the remaining results to be relatively mixed, although investors should be wary of more potential earnings disappointments for some
sectors, which are not yet reflected in the share price performance over the last month.
RHB Equity 360° - 9 August 2010 (Market, Notion, Kurnia; Technical: CBIP, HSL)
Wednesday, May 12, 2010
RHB Equity 360° - 12 May 2010 (AFG, Daibochi, B-Toto, Kencana, Petra Perdana, Kurnia Asia, Hartalega, PetGas; Technical: Latexx)
Visit Note
♦ According to press reports, the Board has identified a replacement for Datuk Bridget Lai as group CEO and will announce the person’s name once BNM approves the appointment.
♦ Notwithstanding the absence of a CEO these past few months, management reassured us that it was business as usual for the group with consumer and commercial banking remaining as the main areas of focus for the group. Management targets “above industry” loan growth, which we believe is achievable given the group’s niche in the SME and consumer segments.
♦ Despite having the highest CASA as a percentage to total deposits, AFG’s unadjusted NIM is the third lowest among peers. Nevertheless, we think this would mean that the company has room to manoeuvre and can be competitive in terms of pricing (which would indirectly translate into loan growth).
♦ AFG is expected to announce its 4QFY03/10 results next week. We expect AFG to post 4Q net profit of around RM35-45m (vs. 3QFY10 net profit of RM99.9m) with the qoq drop resulting from the normalisation of LLP (after the recovery of a corporate loan in 3Q) as well as another RM9.6m impairment provision on the Idaman CLO (3QFY10: nil for Idaman CLO). We do not expect any final dividend.
RHB Equity 360° - 12 May 2010 (AFG, Daibochi, B-Toto, Kencana, Petra Perdana, Kurnia Asia, Hartalega, PetGa...
♦ According to press reports, the Board has identified a replacement for Datuk Bridget Lai as group CEO and will announce the person’s name once BNM approves the appointment.
♦ Notwithstanding the absence of a CEO these past few months, management reassured us that it was business as usual for the group with consumer and commercial banking remaining as the main areas of focus for the group. Management targets “above industry” loan growth, which we believe is achievable given the group’s niche in the SME and consumer segments.
♦ Despite having the highest CASA as a percentage to total deposits, AFG’s unadjusted NIM is the third lowest among peers. Nevertheless, we think this would mean that the company has room to manoeuvre and can be competitive in terms of pricing (which would indirectly translate into loan growth).
♦ AFG is expected to announce its 4QFY03/10 results next week. We expect AFG to post 4Q net profit of around RM35-45m (vs. 3QFY10 net profit of RM99.9m) with the qoq drop resulting from the normalisation of LLP (after the recovery of a corporate loan in 3Q) as well as another RM9.6m impairment provision on the Idaman CLO (3QFY10: nil for Idaman CLO). We do not expect any final dividend.
RHB Equity 360° - 12 May 2010 (AFG, Daibochi, B-Toto, Kencana, Petra Perdana, Kurnia Asia, Hartalega, PetGa...
Monday, May 10, 2010
Corporate Highlights - 10/5/2010
♦ Kurnia Asia
Visit Note : Business Strategy Still On Track
♦ Insurance
Sector Update : BNM Seeks Feedback From The Public
♦ CSC Steel
Results Note : 1QFY12/10 Net Profit Soars On Improved Margins; Near-term Outlook Remains Positive
♦ MISC
News Update : President/CEO Replaced
♦ Market Technical Reading
Daily Trading Strategy : “Sell Into Strength” Before A Major “Sell” Wave Ahead...
♦ Multi-Purpose Holdings
Weekly Trading Idea : Potential Reversal Of The Recent “Sell” Mode...
Corporate Highlights - 10/5/2010
Visit Note : Business Strategy Still On Track
♦ Insurance
Sector Update : BNM Seeks Feedback From The Public
♦ CSC Steel
Results Note : 1QFY12/10 Net Profit Soars On Improved Margins; Near-term Outlook Remains Positive
♦ MISC
News Update : President/CEO Replaced
♦ Market Technical Reading
Daily Trading Strategy : “Sell Into Strength” Before A Major “Sell” Wave Ahead...
♦ Multi-Purpose Holdings
Weekly Trading Idea : Potential Reversal Of The Recent “Sell” Mode...
Corporate Highlights - 10/5/2010
Kurnia Asia Berhad : Business Strategy Still On Track - 10/5/2010
Proposed motor scheme. BNM has posted two proposed scenarios for the new motor scheme on its website to receive feedback from the public. The two scenarios (A & B) differ in terms of compensation, legal recourse, speed of settlements and tariff premiums. Both scenarios have proposed that losses be shared between the Government and the industry through a new vehicle, and an overall liability limit of RM2m. Further details regarding the two scenarios are detailed in our sector report.
Kurnia Asia Berhad : Business Strategy Still On Track - 10/5/2010
Kurnia Asia Berhad : Business Strategy Still On Track - 10/5/2010
RHB Equity 360° - 10 May 2010 (Kurnia Asia, Insurance, CSC Steel; Technical: Supermax, MPHB)
Top Story : Kurnia Asia – Business strategy still on track ♦ Regardless of the outcome of the new motor insurance scheme proposed by BNM, Kurnia is on track to improve its profitability through various measures.
♦ For 1HFY09, third party gross premium dropped by 64.9% while third party policies fell to 276k from 848k previously, suggesting Kurnia is on track with its strategy to more selective in underwriting third party liability policies. Similarly, management expense ratio fell to 17.9% from 20.5% in the same period, as the company moves towards its target management expense ratio of 15%.
♦ Management indicated that Kurnia has surpassed the 130% minimum Capital Adequacy Ratio (CAR) set by BNM. Kurnia aims to further strengthen its CAR to a target of 150%. We believe it is achievable by the end of FY10 through the retention of earnings.
♦ We are maintaining our earnings forecasts, pending the announcement of 1Q numbers on 11 May.
♦ Maintain Market Perform with an unchanged fair value of RM0.74. Assuming the company meets our fullyear forecast, there appears to be upside to its share price.
RHB Equity 360° - 10 May 2010 (Kurnia Asia, Insurance, CSC Steel; Technical: Supermax, MPHB)
♦ For 1HFY09, third party gross premium dropped by 64.9% while third party policies fell to 276k from 848k previously, suggesting Kurnia is on track with its strategy to more selective in underwriting third party liability policies. Similarly, management expense ratio fell to 17.9% from 20.5% in the same period, as the company moves towards its target management expense ratio of 15%.
♦ Management indicated that Kurnia has surpassed the 130% minimum Capital Adequacy Ratio (CAR) set by BNM. Kurnia aims to further strengthen its CAR to a target of 150%. We believe it is achievable by the end of FY10 through the retention of earnings.
♦ We are maintaining our earnings forecasts, pending the announcement of 1Q numbers on 11 May.
♦ Maintain Market Perform with an unchanged fair value of RM0.74. Assuming the company meets our fullyear forecast, there appears to be upside to its share price.
RHB Equity 360° - 10 May 2010 (Kurnia Asia, Insurance, CSC Steel; Technical: Supermax, MPHB)