Strong Performance, Maintain BUY (TP: RM14.52)
LPI Capital had a stellar FY24, driven by Malaysia’s economic recovery. Despite external risks such as geopolitical tensions and climate change, prudent underwriting and customer service are expected to mitigate challenges. As part of the PBB corporate family, LPI has more opportunities for cross-selling and process automation.
Earnings Growth: FY24 PAT grew +20% YoY, despite flat insurance revenue, mainly due to higher general insurance profit (+18% YoY).
4QFY24 Core NP: Fell -40% QoQ due to higher reinsurance costs and lower investment returns. However, 3Q is typically the strongest quarter.
Increased +1.1% YoY to RM1,926.6m, with 97.7% from general insurance and the rest from investment holding (which saw a +42.4% YoY increase due to higher dividends).
Gross Written Premium (GWP): FY24 GWP grew +7% YoY to RM1,860m, though 4QFY24 dipped -7% QoQ, aligning with seasonal trends.
• Improved Combined Ratio: 72.2% (-4.7ppt YoY) due to lower claims.
Forecasts remain unchanged with confidence in LPI’s strategic direction.
Downside risks: Weak investment returns, higher claims, and external market conditions.
LPI’s strong fundamentals, cross-selling opportunities, and process enhancements justify maintaining a BUY rating with a target price of RM14.52. – Source: MIDF
Lim Guan Eng urges MSME loans be channelled via BSN, citing fairness and wider access…
Rafizi warns Malaysia risks “salary trap,” calls for 5% wage growth, better public services, and…
Identity verification for sponsored social media advertisements becomes mandatory as Malaysia strengthens measures against scams…
Aeroline will cease Kuala Lumpur operations after regulatory directives limited services to licensed terminals, ending…
Palo Alto Networks has launched Idira, a next-generation identity security platform designed to protect human,…
Rising expenses challenge margins despite steady business growth.
This website uses cookies.