Further Upside For Manulife Holdings Berhad (KLSE:MANULFE) Shares Could Introduce Price Risks After 30% Bounce
May 13
Malaysian (KLSE) Insurance Industry Analysis
UpdatedMay 17, 2024
DataAggregated Company Financials
Companies8
- 7D3.6%
- 3M5.6%
- 1Y27.0%
- YTD14.2%
The Insurance industry is up 2.8% in the last week, with MNRB Holdings Berhad up 16%. This takes the industry's 12 month performance to a gain of 27%. Looking forward, earnings are forecast to grow by 2.4% annually.
Industry Valuation and Performance
Has the Malaysian Insurance Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 17 May 2024 | RM15.1b | RM13.2b | RM1.7b | 7.4x | 8.9x | 1.1x |
| Sun, 14 Apr 2024 | RM14.0b | RM14.0b | RM1.5b | 7.2x | 9.3x | 1x |
| Tue, 12 Mar 2024 | RM13.8b | RM14.0b | RM1.5b | 6.4x | 9.2x | 1x |
| Thu, 08 Feb 2024 | RM13.7b | RM16.8b | RM1.3b | 8.8x | 10.2x | 0.8x |
| Sat, 06 Jan 2024 | RM13.5b | RM16.8b | RM1.3b | 8.8x | 10x | 0.8x |
| Mon, 04 Dec 2023 | RM13.3b | RM17.0b | RM1.3b | 8.6x | 9.8x | 0.8x |
| Wed, 01 Nov 2023 | RM12.7b | RM17.0b | RM1.3b | 9.2x | 10.1x | 0.7x |
| Fri, 29 Sep 2023 | RM12.4b | RM16.9b | RM1.2b | 9.3x | 10x | 0.7x |
| Sun, 27 Aug 2023 | RM12.5b | RM16.4b | RM1.1b | 9.2x | 11.9x | 0.8x |
| Tue, 25 Jul 2023 | RM12.0b | RM16.1b | RM1.0b | 8.6x | 11.9x | 0.7x |
| Thu, 22 Jun 2023 | RM11.9b | RM16.1b | RM1.0b | 8.3x | 11.8x | 0.7x |
| Sat, 20 May 2023 | RM12.7b | RM15.4b | RM887.6m | 12.7x | 14.3x | 0.8x |
| Mon, 17 Apr 2023 | RM12.7b | RM15.4b | RM1.0b | 8.5x | 12.1x | 0.8x |
| Wed, 15 Mar 2023 | RM12.5b | RM15.4b | RM1.0b | 8.3x | 12x | 0.8x |
| Fri, 10 Feb 2023 | RM13.2b | RM14.9b | RM1.2b | 7.5x | 10.6x | 0.9x |
| Sun, 08 Jan 2023 | RM12.8b | RM14.6b | RM1.1b | 8.4x | 11.3x | 0.9x |
| Tue, 06 Dec 2022 | RM12.9b | RM14.7b | RM1.1b | 8.2x | 11.4x | 0.9x |
| Thu, 03 Nov 2022 | RM12.5b | RM14.3b | RM938.9m | 8.7x | 13.3x | 0.9x |
| Sat, 01 Oct 2022 | RM12.8b | RM14.3b | RM969.6m | 9x | 13.2x | 0.9x |
| Mon, 29 Aug 2022 | RM13.3b | RM14.4b | RM1.2b | 7.5x | 11.5x | 0.9x |
| Wed, 27 Jul 2022 | RM13.5b | RM14.8b | RM1.3b | 7.4x | 10x | 0.9x |
| Fri, 24 Jun 2022 | RM13.3b | RM14.8b | RM1.3b | 7.5x | 9.8x | 0.9x |
| Sun, 22 May 2022 | RM13.8b | RM14.5b | RM1.3b | 7.2x | 10.3x | 1x |
| Tue, 19 Apr 2022 | RM13.9b | RM14.4b | RM1.3b | 7.3x | 10.6x | 1x |
| Thu, 17 Mar 2022 | RM13.5b | RM14.4b | RM1.3b | 6.9x | 10.1x | 0.9x |
| Sat, 12 Feb 2022 | RM14.3b | RM15.0b | RM1.3b | 12.9x | 10.7x | 1x |
| Mon, 10 Jan 2022 | RM14.1b | RM15.1b | RM1.4b | 12x | 10.3x | 0.9x |
| Wed, 08 Dec 2021 | RM13.8b | RM15.1b | RM1.4b | 11.7x | 10.1x | 0.9x |
| Fri, 05 Nov 2021 | RM14.3b | RM15.1b | RM1.4b | 11.9x | 10.3x | 0.9x |
| Sun, 03 Oct 2021 | RM14.6b | RM15.1b | RM1.4b | 12.7x | 10.7x | 1x |
| Tue, 31 Aug 2021 | RM15.0b | RM15.1b | RM1.4b | 13x | 11x | 1x |
| Wed, 07 Jul 2021 | RM14.7b | RM15.1b | RM1.4b | 12.8x | 10.8x | 1x |
Price to Earnings Ratio
10.1x
Current Industry PE
- Investors are pessimistic on the Malaysian Insurance industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 8.9x which is lower than its 3-year average PE of 10.9x.
- The 3-year average PS ratio of 0.89x is lower than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- The earnings for companies in the Insurance industry have grown 5.4% per year over the last three years.
- Meanwhile revenues for these companies have declined 4.7% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the Malaysian Financials industry?
| MY Market | 1.23% | |
| Financials | 0.71% | |
| Insurance | 3.57% | |
| Reinsurance | 16.14% | |
| Life and Health Insurance | 12.08% | |
| General Insurance | 2.78% | |
| Insurance Brokers | 0% | |
| Property and Casualty Insurance | -0.59% | |
Industry PE
- Investors are most optimistic about the Property and Casualty Insurance industry even though it's trading below its 3-year average PE ratio of 17.2x.
- Analysts are expecting annual earnings growth of 3.9%, which is lower than the prior year's growth of 30.6% per year.
- Investors are most pessimistic about the Reinsurance industry, which is trading below its 3-year average of 7.5x.
Forecasted Growth
- Analysts are most optimistic on the General Insurance industry, expecting annual earnings growth of 12% over the next 5 years.
- However this is lower than its past earnings growth rate of 21% per year.
- In contrast, the Reinsurance industry is expected to see its earnings decline by 37% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MNRB MNRB Holdings Berhad | RM2.59 | 16.1% +RM281.9m | 160.3% | PE4.7x | |
| TAKAFUL Syarikat Takaful Malaysia Keluarga Berhad | RM3.80 | 3.8% +RM117.2m | 17.6% | PE9.2x | |
| ALLIANZ Allianz Malaysia Berhad | RM22.08 | 1.8% +RM71.2m | 57.7% | PE7.4x | |
| MANULFE Manulife Holdings Berhad | RM2.45 | 15.0% +RM70.2m | 23.1% | PE6.9x | |
| TUNEPRO Tune Protect Group Berhad | RM0.36 | 4.3% +RM11.3m | -17.0% | PS0.8x |
