KUALA LUMPUR, Oct 25 ― LPI Capital Bhd's shares on Bursa Malaysia went up in the early session today, driven by better performance in the third quarter ended Sept 30, 2023 (3Q 2023) due to higher contribution from the general insurance segment.
As of 11.37am, the counter improved six sen or 0.50 per cent to RM12.06 with 11,300 shares changing hands.
Research by Kenanga anticipates LPI to remain resilient in defending its market share, backed by a leading financial institution and brand equity.
“The group could also continue to leverage the broader economic growth to induce more projects into its miscellaneous segment.
“On the other hand, the claims ratio could see some tapering off from the normalisation of overall activities but reinsurance premiums may continue to increase as flooding occurrences grow more frequent, driving persistent revaluation of its reinsurance coverage,” it said in a note today.
Hence, it said LPI's financial year 2023 and 2024 forecast earnings were fine-tuned as the research house refined its model inputs to reflect the new Malaysia Financial Reporting Standard (MRFS) 17 requirements alongside 3Q 2023's reported numbers.
“We have also maintained an 'Outperform' call for LPI with a target price of RM14.70,” it said.
LPI's net profit for 3Q 2023 increased to RM97.37 million from RM79.18 million in 3Q 2022, while revenue also improved to RM498.40 million during the quarter compared to RM434.05 million previously. ― Bernama