Just like what I mentioned at my previous article about AJINOMOTO,
since my investment result for this year is still negative return,
so I am very disappointed at the companies in my investment portfolio,
and decided to open my eyes for other companies at the shares market~
Thus,
this is the second article of this series,
the company I opened my eyes for was STMKB,
the Syarikat Takaful Malaysia Keluarga Berhad.
The reason why I saw this company,
was because I saw YY sister posted Takaful latest quarter result at her Facebook Page,
Thank you~
Since I never read about this company before,
so instead of the quarter report,
I decided to read the latest annual report first:
Wow~
The business growing every year.
Hmmm....
But is it only growing for the past 5 years?
Or it kept growing since long time ago?
So I decided to read the annual report for year 2013 instead:
Hmmm.....
The business for year 2011 dropped?
Or was there any other reason?
Especially a * is marked at year 2010.
Later I read the explanation of the *,
seems like year 2010 contained the result for one and a half year,
so it was a record for 18 months long,
no wonder the business for year 2011 looked lesser comparing with it~
Alright,
let's continue reading it.
The business shown above is only the Family Takaful segment,
one of the two main segments of STMKB,
below one is the General Takaful segment.
From year 2009 to 2013:
From year 2014 to 2018:
Just read the Group part.
Well then....
Business grew,
but how about the profit?
Like recently the glove companies.........
all sold more gloves,
but at the end earned less profit,
worked hard for nothing.
So........
Let's see the profit before tax:
Profit kept rising for the past 10 years.
What was wrong with me?
How come I never realized this company before.................
Of course!
After profit then should see the dividend too.
Since there are some companies which earned a lot of money,
but very stingy about dividend!
So let's see the dividend record:
Hmmm,
looks good~
Also the ROE:
And EPS:
Since I already downloaded the annual report year 2013,
so I decided to read more about it.
The Group already captured close to 40% of the market shares of Group Family Takaful business,
and 23% of the combined Family and General Takaful business.
However,
it is having a tough fight at Indonesia:
which meant the companies there are selling Islamic insurance under the cover of conventional insurance.
It was stated there that a regulatory changes to disallow the operating of Windows Strategy was expected,
but until now year 2019...........
still the same.................
One of the uniqueness of STMKB is there will be a 15% Cash Back reward if no claims during the coverage period:
I think I should buy insurance from Takaful instead,
for more than 10 years I drove,
my car only been hit from behind once only.
That time I was in a traffic jam,
move stop move stop,
the car behind still can kiss the back of my car,
I guess the driver was either dozing off or playing smartphone............( \_/ )
I talked too much............
Anyway,
a total of RM29.6 million was rewarded as Cash Back that year:
After reading the year 2013 version,
only I started to read the year 2018 version:
It was stated that the takaful industry growth continued outpacing the conventional insurance.
The Family Takaful business grew by 13% last year:
The General Takaful grew by 9%.
While reading the annual report,
I also found out more about the Detariffication by BNM:
The Motor Takaful grew by 27%,
however the Commercial Fire Takaful was facing intense competition.
By reading the annual report,
I also received some investment tips:
Utilities, healthcare, technology, rubber gloves, chemicals and oil & gas sectors were listed.
Looking forward:：
The good prospects mentioned:
1) Low penetration rate
2) Rising urbanization
3) Escalating medical costs
4) Ageing population
5) Strong demand in Islamic banking & finance sector
The Group is optimistic that it will be able to further expand its market share in 2019 with double digit growth:
Did the Group did what they promised?
Let's read the latest quarter report:
the Group really kept the promise.
It was again mentioned that Takaful industry is expected to outperform the conventional insurers:
That's all for the important points of latest annual report and quarter report,
if you feel like something is lacking,
feel free to go to BURSA website to download and read it.
Only the good things were mentioned above,
but what are some other things that we need to be cautious of?
The change of accounting standard MFRS17 which will start at year 2021.
For those invested/investing at AEONCR like me,
I totally felt the pain after changing to the MFRS9 accounting standard,
the profit dropped so much,
and it was a very painful experience for me.....
Thus,
we need to be careful of the change of accounting standard if we want to invest at STMKB.
Investment is about doing own thinking, making own decision.
Thanks for reading.
I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.
Recent articles :
AJINOMOTO latest quarter financial report
AEONCR latest quarter financal report
My investment result for 3rd quarter 2019
What is Financial Education(3): LEARN THE LANGUAGE OF MONEY
PANAMY latest annual financial report
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