KUALA LUMPUR: Syarikat Takaful Malaysia Bhd gets an “outperform” rating and RM4.27 target price from Kenanga Investment Bank Bhd as the latter initiated coverage on the stock. Kenanga IB said growing demand for takaful products, low penetration rates as well as government initiatives augur well for Syarikat Takaful’s earnings prospect. Its net contribution income has also grown faster at five-year CAGR of nine per cent vis-a-vis conventional five-year CAGR of six per cent. “Coupled with low penetration rate of 54 per cent as well as growing consumer awareness amid rising medical costs and living expenses, we still see tremendous potential in the takaful business which will continue to support Syarikat Takaful earnings,” Kenanga IB said. The firm said Syarikat Takaful is also well poised to benefit from government’s initiatives under the Economic Transformation Programme (ETP).

Source: New Strait Times September 26, 2017 11:03 UTC