TUNEPRO (5230) - TUNEPRO ( July Potential Stock )

TUNEPRO





( i ) Core business: Gobal Travel Insurance, General Insurance & Digital Insurance

- Global Insurance- 40% of Revenue


                             - 80 % of it is from Asia Countries ( Malaysia, Philipines and Indonesia ) and 20 % is from middle east


                            - Air Asia contributes 90 % of the sales


- General Insurance- 60% of Revenue


                               - Business is based in Malaysia and Thailand


                              - Motor insurance contributes 30 % of the sales


- Digital insurance- online insurance




( ii ) Financial Result





- Revenue

From 2011 to 2015, revenue has grown tremendously from 54.8 M to 357.7 M ( 552 % )/ Average 100 % per year


- Profit

Profit also grew from 27 M in 2011 to 69 M in 2015. ( average 12 % per year )


- Profit Margin

consistently above 20 %









Debt to Equity Ratio

2015- 1.46

2016- 1.55

Although, the debt has increased, but it is still acceptable for a fast growing company.






( iii ) Competitor ( LPI/ Takaful )


- PE

LPI- 16

Takaful- 21

Tunepro- 14



- Average Profit Margin ( 2011 -2015 )

LPI - 26 %

TAKAFUL - 7.5 %

TUNEPRO - 20 %

- Stock performance over a year

LPI- + 10.68 %

Takaful- + 3.25 %

Tunepro- -3.15


- Profit growth ( 1sr Quater 16/ 31/3/16 )

LPI- 15.8 %

Takaful- 0 %

Tunepro- 41 %


- Dividen ( 2016 )

LPI- 3.26 %

Takaful - 1.8 %

Tunepro- 3.4 %


# Comapred to the competitors, Tunepro did well in growing their business and offer the highest dividen to share holder. Besides, TUNEPRO is also undervalued as its PE is lowest among the companies in same industry.


( iii ) Advantage

- Strong support from AirAsia

As mentioned above, 90 % of sales of travel insurance is contributed by AirAsia.


Average 1 out of 4 persons who purchase Airasia tickets will purchase Tune Insurance.


Based on the Airasia quater report, number of passengers carried has increased 17% and Tunepro will

definitely benefit from the growth of number of passengers.

- Management has worked hard in diversifying the business and reduce the relliance on Airasia


Tunepro has expanded the business to Asean countries and also Middle East.


Partnership with Cebu Pacific Airline and also Emirates.



- Generous Dividen and low PE


Dividen payout ration of 40 %/ 3.4 %


Low Pe- 14



( iv ) Disadvantage

- Too rely on Airasia


- Tunepro will face huge claims if air crash happens again.

Conclsuion

Tunepro is a company with strong fundamental and endless potential.

As long as Airasia and global tourism keep on growthing, Tunepro will certainy benefit most from it.

TUNEPRO (5230) - TUNEPRO ( July Potential Stock ) 
http://topshare94.blogspot.my/2016/07/tunepro-july-potential-stock.html