KUALA LUMPUR: Syarikat Takaful Malaysia Keluarga Bhd's (Takaful Malaysia) nine-month net profit of the financial year 2022 (FY22) was largely within expectations, CGS-CIMB Research said.

The firm said the result accounted for 74.1 per cent of CGS-CIMB Research's full-year forecast and 75.6 per cent of the Bloomberg consensus estimate. 

"The positive takeaway from the results was sterling growth in the third quarter (Q3) FY22 gross earnings contribution.

"Growth for both major segments was strong in Q3 FY22, at 43.4 per cent year-on-year (YoY) for family takaful and 17.9 per cent YoY for general takaful. 

"In our view, this was the result of a marketing and sales drive, as well as a multi-channel strategy, pursued by the current group chief executive officer Nor Azman Zainal, who took the helm on January 1, 2022. 

"This enabled Takaful Malaysia to achieve a strong net profit growth in Q3 FY22," it said in a note today.

CGS-CIMB Research expects Takaful Malaysia to post a net profit of RM85.1 million in Q4 FY22, which would be 2.5 per cent lower than the level in Q3 FY22 due to a seasonable slowdown in Q4.

The research firm said Q4 FY22 net profit would plunge by 45.5 per cent YoY as there was a net write-back of RM16.8 million in Q4 FY21 tax expense, while the effective tax rate will remain high (at 31-33 per cent) in Q4 FY22, lifted by Cukai Makmur taxation.

CGS-CIMB Research has reiterated its 'Add' recommendation on Takaful Malaysia with a higher target price of RM4.13 from RM4.