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Cheapest Insurance tech Co on Bursa today. Best outcome 1) Tony & kamaruddin forced to sell their controlling block at 35 to 40sen to a larger, serious player. Revamp the co.. 2) AA goes down, tune's controlling shareholders divest the whole business or liquidate parts. The investment holding could be worth 55 to 60sen return to shareholders. However it'll take 2 yrs... Hahaha. 3) biz as usual and tune just makes their rm2 to3 mil baseline... Share stuck between 28 to 30sen..
Just looked at Tune Protect’s latest Q2 results. Despite the challenges from AirAsia and weaker travel business, the numbers still look quite decent. PAT was RM6.4m, up 66.5% from the previous quarter.
What’s interesting is that the non-travel business is already helping to support the results. If the travel side gradually recovers in 2H, there could be further improvement in earnings.
Insurance business is regulated and BNM has eyes and overwatch. Tune is also not in debt and can remain stable with most of its balance sheet intact.
At this level, it's mostly already baked in that Air Asia's impact from higher fuel cost would result in lower insurance revenue, but as long at the combined ration remains healthy at 90%, should still yield positive cash flow.
If combined ration remains around 90%, we can expect min 1.3 to 1.5 sen dividend again nx year. Need to build a higher revenue base and improve investment returns.
