Kuala Lumpur: LPI Capital Bhd's shares on Bursa Malaysia were flat in early trade today despite recording robust performance for its financial year ended December 31, 2024 (FY2024). At 10.50 am, the counter stood at RM13.90, with 249,000 shares transacted.
According to BERNAMA News Agency, 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. 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 stated that LPI's FY2024 results were within expectations, though the full-year dividend payout of 85 percent (80 sen) came slightly short of its anticipation. The investment bank added that LPI maintains a leading yield position in the financial sector, with the upcoming sale of its 1.1 percent Public Bank Bhd (PBB) stake likely to spur further returns to shareholders, forecasting up to 17 percent in special dividend yield. They maintained an 'outperform' call with a higher rolled-over target price (TP) of RM16.00, up from RM15.00.
Meanwhile, MIDF Amanah Investment Bank Bhd highlighted that the key driver of LPI's strong performance was the robust recovery in the Malaysian economy in 2024. However, they noted that external factors, including geopolitical tensions and climate change, may impact demand for insurance and claims frequency in 2025. Despite these challenges, MIDF expressed confidence in LPI's management, citing their ability to effectively manage through prudent underwriting and superior customer service. They also noted the potential for cross-selling opportunities within the PBB corporate family, enhancing LPI's product offerings. MIDF maintained a 'buy' call with an unchanged TP of RM14.52, acknowledging ongoing plans to automate processes and enhance distribution channels.