OSK maintains 'buy' call on LPI Capital (8621)

OSK Research has trimmed its earnings forecast for LPI Capital by 5.2 per cent for the financial year 2012 and 4.4 per

cent for financial year 2013, on assumption of a higher claims ratio.



"We believe that our earnings revision is justified since the group
has not factored in any losses from the Malaysian Motor Insurance Pool,
as well as the weaker than expected earnings in the first quarter
financial year 2012," it said in its research note here today.



OSK Research said LPI Capital's first half financial year 2012
annualised earnings accounted for only 40.9 per cent of its full-year
forecast due to higher than expected claims in the first quarter.



"Despite to its impressive revenue growth, we believe that its
second half financial year 2012 claims ration would not exceed our
estimate," it added.






The research house has maintained a "buy" call on LPI Capital with
a fair value of RM15.60. "Our valuations are justifiable as the group
has been consistently chalking up earnings growth and paying dividends
to its shareholders," it said. -- Bernama