Monday 27 May 2024
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KUALA LUMPUR (Jan 30): LPI Capital Bhd extended gains after the insurer reported fourth quarter profit more than doubled from a year earlier, and proposed a dividend, and bonus share issue to reward shareholders.

LPI (fundamental: 1.7; valuation: 0.35) rose as much as 32 sen or 1.5% to RM20.98 before reducing gains. The stock was traded at RM20.70 at 2.42pm with 111,400 shares done.

For comparison, the FBM KLCI added 2.72 points or 0.15% to 1,784.90. Yesterday, LPI rose RM2.16 or 12% to close at RM20.66.

Today, The Edge Research highlighted LPI as a stock with momentum based on algorithm. Edge Research's report is available in The Edge Financial Daily and today.

Last Wednesday, LPI said net profit jumped 123% to RM117.06 million in the fourth quarter ended December 31, 2014 (4QFY14) from RM52.39 million a year earlier. Revenue was higher at RM299.17 million versus RM294.65 million.

Full-year net profit climbed to RM283.02 million from RM201.44 million a year earlier while revenue was higher at RM1.17 billion versus RM1.12 billion.

LPI plans to pay a dividend of 55 sen a share in 4QFY14, bringing full-year dividends to 75 sen. The company also proposed a bonus issue of new shares on the basis of one bonus unit for every two existing shares held.

Based on LPI's latest closing share price of RM20.66, the full-year dividends of 75 sen a share translate into a 3.6% yield.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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