LPI Capital Shares Flat In Early Trade Despite Robust FY2024 Performance

KUALA LUMPUR, Feb 17 (Bernama) -- LPI Capital Bhd’s shares on Bursa Malaysia were flat in early trade today despite recording robust performance for its financial year ended Dec 31, 2024 (FY2024).

At 10.50 am, the counter stood at RM13.90, with 249,000 shares transacted.

In a filing with Bursa Malaysia on Friday, the group posted a higher net profit of RM377.09 million in FY2024, up from RM313.73 million in FY2023, primarily due to higher profit from the general insurance segment, while revenue increased to RM1.93 billion from RM1.91 billion, driven by the investment holding segment.

Following its better FY2024 earnings and revenue, most analysts were positive on LPI’s outlook, maintaining their “outperform” and “buy” recommendations on the group.

Kenanga Investment Bank Bhd said LPI’s FY2024 results were within expectations, though full-year dividend pay-out of 85 per cent (80 sen) came slightly short of its anticipation.

“Still, it does not take away its leading yield position in the financial sector with the upcoming sale of its 1.1 per cent Public Bank Bhd (PBB) stake likely to spur further returns to shareholders (up to 17 per cent in special dividend yield).

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“A near-term shortfall in investment income would be made up by long-term synergistic gains within the larger group,” it said in a note today.

Therefore, the investment bank maintained its “outperform” call with a higher rolled-over target price (TP) of RM16.00 (from RM15.00). 

Meanwhile, MIDF Amanah Investment Bank Bhd said the key driver of LPI's strong performance was the robust recovery in the Malaysian economy in 2024. 

However, external factors, including geopolitical tensions and climate change, may be a key feature in 2025, affecting demand for insurance and claims frequency, it said. 

“Nevertheless, we are confident that the management will continue to effectively manage these challenges through prudent underwriting and superior customer service. 

“Furthermore, we believe that being a new member of the PBB corporate family enhances opportunities for the group to further cross-sell insurance products to the PBB customer base and develop tailored products catering to the customer’s insurance needs,” it said in a separate note. 

MIDF said it understands that plans are also underway to further automate processes and enhance the group’s distribution channels, and hence, it maintained its “buy” call with an unchanged TP of RM14.52. 

-- BERNAMA