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Written by Ben
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Saturday, 27 October 2007 |
MNRB Holdings Berhad
(UNDERWRITING OF ALL CLASSES OF GENERAL REINSURANCE BUSINESS)
Insurance companies buy insurance from MNRB.
MNRB commenced business in 1973. This means they have been in business for 34 years.
As at 31 March 2007, their paid-up capital was RM211, 866,000 divided into 211,866,000 shares of RM1 each.
EPS = 61.4 sen (basic); 61.3 sen (diluted). These figures are after taxation.
The Company’s dividend track record has remained solid for the past 30 years. They paid: A first interim dividend of 15% tax free on 26.12.06
A second interim dividend of 5% less tax on 30.03.07
A final dividend of 26% less tax on 28.08.07.
For the 1Qtr ended 30 June 2007, the earnings per share (EPS) = 46.65 sen. This figure includes an extra ordinary gain of 30 odd sen per share. Nevertheless, the normal earnings are commendable.
Last year, the 2Qtr earnings were announced on the Nov 20, 06 and the payment of a 1st interim dividend was made on 26 Dec 06. In this respect, an announcement is likely to be made in the near future. There is also a likelihood that a Special Dividend maybe made because of the one-off gain they made some time ago.
During the last financial year, Malaysian Re (MR) has been asigned a Financial Strength Rating of ‘A’- (Excellent) by A.M.Best and Fitch Ratings. These ratings have placed MR among the elite reinsurance companies in the Asian-Pacific region. According to the Board, ”the group is poised to scale to greater heights.”
Chart-wise, the stock last closed at 5.10 which is its immediate resistance level. I expect this level to be breached within the next two weeks. The next resistance level is at 5.80.
This stock, in my opinion, is undervalued. It is solid and gives good dividends.
As usual, the writer disclaims all liability for his comments and opinion. Whether you choose to buy, sell or hold, you do so at your own risk absolutely.
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