Purchase of Tune Protect & ISOTeam Ltd

tunepro

On 27/10/16, I purchased Tune Pro at 1.61RM. Tune Pro is my first foreign stock and it is listed on the BURSA stock exchange in Malaysia. The company is an insurance company with its dominant revenues coming from the AirAsia’s travel insurance segment. The travel insurance segment derives most of its revenues from Malaysia, Thailand and Indonesia while its general insurance arm (motor, medical, fire, etc) derives its sales mostly from Malaysia. The financials for the past 5 years are shown below:

2011 2012 2013 2014 2015
Revenue (RM Mil) 54.8 183.8 289.6 329.3 357.7
Total Profit (RM Mil) 27.3 41.4 68.0 72.3 69.0
Dividend (sen) 3.86 4.04 5.00

I like the rising revenue and profits over the recent years, and its push into general and digital insurance has shown that it is trying to move away from just travel insurance. Selling insurance digitally is something new, and if the management of Tune Protect can navigate this field skilfully, like how its parent company (AirAsia) did well in the low-cost direct delivery channel; then the opportunity is huge. Dividends have been steadily increasing over the past 3 years, an indication of its growing business. This is also due to the fact that the company brings in decent cashflow, atypical of an insurance business. The company is able to ride on AirAsia’s growth in the region as well, as it sells travel insurance to its parent’s customers. At my purchase price of 1.61RM, the company is trading at a decent dividend yield of 3.1% and a TTM PE of 14.17, which is not cheap, but rather, a fair price to pay for this growing insurance business. My purchase is considered a small one, and I hope to accumulate more in the future.

On the other hand, I purchased ISOTeam Ltd on 28/10/16 at $0.39. I have written about ISOTeam Ltd before, and I am still bullish and confident about its prospects in the future. At my purchase price of $0.39, the PE is 12.79 based on FY16 earnings of $0.0305.

 

Disclaimer: The author owns shares in the abovementioned company. The ideas expressed in this blog should not be construed as an enticement to buy or sell the securities, commodities or assets mentioned. The accuracy or completeness of the information provided cannot be guaranteed. Readers should carry out independent verification of information provided. No warranty whatsoever is given and no liability whatsoever is accepted for any loss howsoever arising whether directly or indirectly as a result of actions taken based on ideas and information found in this blog.