Tuesday 21 Jan 2025
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KUALA LUMPUR (July 23): CIMB Research has initiated coverage on Syarikat Takaful Malaysia Bhd at with an “Add” rating at RM3.38 and target price of RM4.39 and said there was no other choice than Syarikat Takaful Malaysia (STM) for investors looking for pure and direct exposure to the fast-growing takaful industry. STM is also one of the biggest players in this segment, competing with Maybank-owned Etiqa.

“We are initiating coverage on STM with a DDM-based target price of RM4.39 (COE of 9.7%, terminal growth rate of 4%) and an Add recommendation,” it said in a note July 22.

“Potential re-rating catalysts are (1) a strong 3-year EPS CAGR of 15.6% for FY14-17, (2) a positive industry outlook, and (3) high ROE of 20%+,” it said.

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