Tune Protect Group Bhd (-ve)

Shares in Tune Protect Group Bhd (fundamental: 1.95/3, valuation: 1.8/3) yesterday triggered our momentum algorithm for the first time this year.

Its shares climbed 13 sen or 9.22% to a one-month high of 1.54 yesterday. A total of 10.78 million shares were traded compared with a 200-day average trading volume of 2.03 million shares.

Yesterday, Tune Protect’s chief executive officer said the group expects to maintain single-digit growth in gross written premiums (GWP) after recording a growth of 5.7% in GWP to RM501 million in the financial year 2016 (FY16). It also announced a collaboration with AirAsia Bhd to leverage on the latter’s technology and data in a move to digitalise insurance and improve customer experience.

The group recorded a 30% fall in net profit for its fourth quarter of FY16 to RM16.54 million from RM23.49 million a year earlier on lower net earned premiums and higher claims. Revenue was higher at RM135.47 million compared with RM130.92 million.

The stock is currently trading at 2.13 times its net book value and has a RM1.16 billion market value.