Zoros Invest Fun

Background For the past 30 years, the premiums which insurance companies can charge consumers have been regulated by a tariff structure. For motor insurance, this has resulted in a growing gap between premiums collected and claims paid out by the insurers. This has led to the Motor Third Party business becoming unsustainable. To ensure that motor insurance cover continue to be made available and accessible to motorists, The New Motor Cover Framework (the Framework) was implemented in 2012 and saw four rounds of gradual upward adjustments from 2012 to 2015. The Framework also paves the way for phased liberalization of Motor Tariff in 2016. On the other hand, the Fire Tariff was revised three times from 1992 to 2000. On March 2016, Bank Negara Malaysia (BNM) had announced the Phased Liberalisation of the Motor and Fire Tariffs before transitioning to a fully liberalized market. Motor and Fire Insurance are compulsory insurance protection in Malaysia, accounting f

Is GENM a good buy now? As a value investor, I only invest in a company if the company is cheap enough. So, how do we define whether the company is cheap enough? Normally, i will use P/E to come out with the reasonable price of the company, to determine whether it's overvalued or undervalued. P/E ratio Historical Average P/E (5 years): 12.93x Industry P/E: 19.7x (based on TA Research Report @ 28/2/2020) CAGR + DY: 12.72x GENM's P/E on 21 April 2020 is 10x. Compare to historical, industry P/E and CAGR+DY, the current P/E is considered low. However, after factor in the earnings affected due to Covid-19, the current P/E is reasonable. Hence, it share price is not really attractive at the moment. I have roughly calculated the EPS for 2020. I have estimated GENM's business will reduce for 6 months after the lockdown due to cautious of the Covid-19 virus. And i expect the business will increase on November and December due to school holiday. Based on th

Genting Malaysia Berhad's Financial Analysis Income Statement Source: Genting Malaysia' Annual Report GENM's revenue has consistenly grown for the past 5 years, with CAGR of 4%. Its business is considered stable unless there is any significant event happen (Covid-19). Its EPS has grown in a slower pace (2%), which mainly due to increase of finance cost and hiking of casino duties. However, GENM is generous in giving dividend. GENM's dividend per share is increasing over the year, and the yield is attractive at current price. It is suitable for investor which focus on dividend.   Balance Sheet GENM is rich in cash, it has RM6.4billion of cash as at 31 December 2019. Its cash is able to cover its expenses for 4.33 years, which indicates that GENM can still survive if it stop operation for certain period. Source: Genting Malaysia' Annual Report Although it's in net debt position, however, 85% of its borrowing is belong to long term

Due to various negative news, including the recent Covid-19 outbreak, Genting Malaysia Berhad (GENM)'s share price has slumped to the historical low price level (RM2.26) since the 2008 financial crisis.  Warrent Buffet once said that:  " During the economic downturn, these businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now. D ownturn provided an opportunity for investor to buy strong companies at low prices." So, is GENM a good buy right now? Before we make a conclusion on that, we should look at GENM's business model and the company financial to identify whether GENM is a strong company which can sustain its business during the crisis. Company Background Genting Malaysia Berhad was incorporated in 1980 by the late Tan Sri Lim Goh Tong and listed in 1989.  The Group is involved in the leisure and hospitality industry. GENM's current c

Technical Chart: 2010 to 7 Apr 2020 TAKAFUL's share price has slumped for 59% from its highest point (RM7.18 @ 24 Jun 2019) to RM2.93 (@ 17 Mar 2020) due to persimistic market condition. However, TAKAFUL has caught my attention due to following reasons: 1.  Insurance companies are defensive stock, their revenue and earning won't be significantly affected by market risk. 2. TAKAFUL is extremely undervalued! Based on historical average P/E of 15.62, the fair value of TAKAFUL should be around RM 6.90 (assume the growth rate in 2020 is 0%), which means it has potential upside of 109%! 3. High dividend yield (6%), compared with current FD rate of 2.xx%. 4. Fast growing company, with 5-years CAGR of 18% on EPS 5. 84% of its investment is debt related investment, which means its investment income (interest income) will be relatively stable, and the drop of OPR will lead to increase in fair value of debt securities. Conclusion: TAKAFUL is a fast growing company wi

Syarikat Takaful Malaysia Berhad (TAKAFUL) was incorporated in 1984 and listed in main board on 1996. TAKAFUL is the second largest takaful operator in Malaysia, behind Etiqa. Its main business is to offer general and family takaful products to individuals and organisations. It manages its takaful business in Malaysia and Indonesia. Corporate Structure

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