Hot Stock Allianz 3rd largest gainer after results beat forecast

by **Cals** Mon 25 Nov 2013, 14:09

Hot Stock Allianz 3rd largest gainer after results beat forecast

Business & Markets 2013

Written by Chong Jin Hun of theedgemalaysia.com

Monday, 25 November 2013 10:26

KUALA LUMPUR (Nov 25): Allianz Malaysia Bhd rose as much as 7% after the insurer reported its latest financials which beat market forecast.

At 10.05am, Allianz was traded at RM10.60 on some 42,000 shares done. The bourse's third-largest gainer had earlier risen as much as 67 sen to RM10.62.

Last Friday, Allianz said net profit rose 40% to RM74.15 million in the third quarter ended September 30, 2013 from RM53.12 million a year earlier. Revenue climbed to RM962.32 million from RM786.59 million.

Cumulative nine-month (9MFY13) net profit increased to RM190.05 million from RM163.55 million a year earlier. Revenue was however lower at RM2.17 billion compared to RM2.3 billion.

In a note today, RHB Research Institute Sdn Bhd analyst Kong Ho Meng said Allianz's 9MFY13 earnings "beat expectations".

The numbers accounted for 84% and 87% of RHB's and consensus forecast respectively, KOng said.

"Despite the stronger-than expected topline and bottomline growth, we remain cautious on Allianz's high LI (life insurance) agent concentration of 86% and potentially softer premiums growth outlook.

"We retain our forecasts pending the analyst briefing today," Kong said. RHB is maintaining its target price of RM10.70 with an unchanged "neutral" call for Allianz shares.

Dealers however have a differrent view on gains in Allianz shares today.

A dealer said if Allianz's financials were the main reason for the stock's advance, "the trading volume would have been higher".

"It could be due to the company's directors trading shares in the firm," the dealer told theedgemalaysia.com over telephone.