Tune Protect Group Berhad – Insurance Made Easy

Tune Protect Group

Overview

Tune Protect Group Berhad (“Tune Protect”), previously known as Tune Insurance Holdings Berhad is listed on the main market of Bursa Malaysia since its initial public offering in February 2013. The main business of Tune Protect is in insurance and reinsurance, primarily travel insurance and general insurance. Through its alliance with AirAsia and its affiliates, Tune Protect has been one of the major travel insurance players in Malaysia and the ASEAN region.

I purchased a total of 10,800 shares in Tune Protect (TUNEPRO 5230) back in February and July 2015 for an average price of RM1.7133.

Tune Protect Fundamentals – Annual Report 2016

The financial year 2016 has been a positive one for Tune Protect when compared to the dismal year of 2015. The company grew revenue by 7.6% to RM516.6 million. Profit after tax increased by 18.8% to RM86.6 million. Shareholders equity also grew 10.1% to RM496.6 million. Earnings per share of the company have grown to 10.64 sen from 9.17 sen a year ago.

Profitability metrics are more than suitable. Tune Protect has a return on equity of 16.1%. A good, solid number here.

For a more comprehensive view of the company’s financials, the 2016 Annual Report can be downloaded hERE.

Tune Protect, AirAsia and Tune Group

Tune Protect Ownership / Shareholders
Tune Protect Ownership

15.77% of Tune Protect is owned by Tune Group Sdn Bhd whose joint-shareholders are Tan Sri Tony Fernandes and Datuk Kamarudin Meranun. Another 13.65% is further owned by AirAsia Berhad. This strong correlation to AirAsia is the reason for the strong partnership between Tune Protect and the airline. I view this as a double-edged sword because Tune Protect is deriving most of its travel insurance income from AirAsia customers – a risk in my opinion.

That being said, this risk also creates a secure and all but guaranteed stream of income for Tune Protect. AirAsia and its owners Tan Sri Tony Fernandes and Datuk Kamarudin Meranun both have a significant interest in the company and I don’t foresee a break in the strategic alliance between the parties.

Tune Protect Insurance Structure
Tune Protect Corporate Structure – 2016 AR

Conclusion

All in all, I view Tune Protect as an insurance company with immense growth potential. I particularly like the direction the company is going in terms of digitalisation and ease of usage. The company’s partnership with AirAsia puts it in a strong position in the travel insurance industry.

In 2016, Tune Protect added RM540 to my annual dividend income, a 2.92% dividend yield for 2016. The stock is trading at RM1.58 today (22 May 2017), translating to a capital loss of 7.78% for me.

Have you taken a look at this stock? Like it? 

Tune Protect Group – AGM 2017

Tune Protect Group to face ‘Short-term Pains’ in 2017

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Tune Protect AGM Doorgift Tony Fernandes
Tony Fernandes and Kamarudin bin Meranun

The management stated in the AGM today that Tune Protect is quietly optimistic moving forward. They’re expecting to maintain single digit growth for the 2017 financial year.

Towards the end of 2016, the Malaysian Aviation Authority’s new requirement for airlines to provide an “Opt-in” facility for travelers purchasing travel insurance. This has huge negative implications for Tune Protect. However, management has several initiatives planned to offset this. The company is planning to collaborate with AirAsia, leveraging on the airline’s technology and digital platform.

AirAsia, Tune Protect ‘about to announce big tie up’

KUALA LUMPUR (May 22): AirAsia Bhd group chief executive Officer Tan Sri Tony Fernandes said the budget airline and Tune Protect Group Bhd will announce a major collaboration to further grow both companies’ income.

AirAsia is the largest shareholder in insurer Tune Protect with a 13.65% stake as at April 10, 2017. Tune Protect’s units include Tune Insurance Malaysia Bhd and Tune Insurance Labuan Ltd.

“Airasia and Tune Insurance about to announce big tie up. Both incomes will grow. PC (press conference) later.

“I believe Tune will create new markets through digital insurance,”
Fernandes said via Twitter.

The Edge Malaysia

Tune Protect 2017 AGM Doorgift / Goody Bag

I had a mini heart-attack today as I arrived to register for the AGM. They told us they ran out of door gifts again but fortunately more were on the way. I headed in to attend the AGM first after being told there would be enough gifts for everyone after the AGM. The AGM was conducted in GSC’s cinema theater and it was a well-run meeting.

Tune Protect AGM Doorgift
A tote bag that can be worn as a backpack is how I’d describe this.
Tune Protect AGM Doorgift
What was inside: A nice, fluffy round pillow for your travels.
Tune Protect AGM Doorgift
RM10 Secret Recipe Cash Voucher x2

End.

Surprisingly, the AGM today wasn’t filled with dumb questions. The shareholders today were much more sophisticated and involved.

The investor relations team from Tune Protect did a good job handling some rowdy shareholders who weren’t happy because they had to wait a few minutes for their door gifts. Some were even complaining because they wanted bottled waters to bring home.

To the Tune Protect IR team, thank you for a good AGM. And if it is of any consolation, I apologize for the garbage and self-entitled attitudes from some of my fellow shareholders.

Wanted to get a picture with Tony Fernandes but I was rushing to get some errands done. Doubt I’ll be able to during AirAsia’s AGM this coming Thursday (25/5/2017) due to the crowd.

Let me know if you’re attending the AGM this Thursday, we’ve still got 1 more slot in our little carpool squad.

After the AGM ended at around 11.30 am, I headed to Secret Recipe to redeem my RM20 cash vouchers. Had a plate of Stewed Australian Beef and a cup of coffee. Paid an extra 11 bucks for those.

As at 4 pm today, Tune Protect’s share price rose 11% to RM1.57, for a market value of a little over RM1 billion.

Thank you for reading!

IGB REIT AGM 2017 (Doorgift inside)

IGB REIT AGM

IGB REIT AGM was held on 25 April 2017 (a Tuesday). I was really interested in putting a face to the management team of one of my favourite REITs, not to mention I’ve read online that they give out Cititel buffet vouchers every year. With that in mind, I journeyed to Mid Valley Megamall on a wet Tuesday morning.

If you’ve never heard of a REIT (Real Estate Investment Trust), you may find out more HERE.

This being my second AGM of 2017 (the first was Public Bank’s), I was a little more privy to the timing of it all. Making use of the KTM to avoid the anticipated traffic jam around Mid Valley, I arrived with about 10 minutes to spare. IGB REIT AGM was set to start at 11.30 am at Cititel.

The Venue and the sights that greeted me

IGB REIT AGM 2017
The Venue: Cititel
IGB REIT AGM 2017
Yup. This.
IGB REIT AGM 2017
And this.
IGB REIT AGM 2017
And more.

So the first guy in the picture, I don’t know why he had to sit down with his legs wide open right at the entrance. I saw him as soon as I got out of the lifts. Classy.

Don’t know if you’ve caught on by now, but AGMs in Malaysia are apparently attended 99% by our elders. I had a sliver of hope that this IGB REIT AGM would attract some youngER folks but I guess not. Turnout wasn’t as good as Public Bank’s AGM – I’d say IGB REIT’s was about 25% of the crowd.

Again, I have nothing against old people. Just wish there were younger folks showing interest in the companies they invest in.

The Refreshments

IGB REIT AGM 2017
Wow!! Empty Line?

See the nicely arranged cups and snacks in the first pic? My first thoughts: Wow I could actually have something before going in for the AGM.

I was then politely told that these were for another meeting. Walking ahead, I came across the familiar queue for refreshments. I didn’t want to waste my time in line, I think they served soya milk?

IGB REIT AGM 2017

IGB REIT AGM 2017 Doorgift

The moment some of you have been waiting for – I present you the Cititel buffet voucher! To be precise, a discount voucher. I expected a fully subsidized buffet..

After the AGM, I headed to Citi Cafe and found out a huge line outside. Apparently, the lunch buffet was close to RM38, dinner wasn’t though.

Oh and guess what some of the shareholders were doing right there? Offering to purchase the discount vouchers for RM20. Some even offered RM15. Another one of those Malaysian moments I guess.

IGB REIT AGM 2017 Buffet Voucher
IGB REIT AGM 2017 Doorgift – Buffet Voucher
IGB REIT AGM 2017
Parking Validation (submitted by a reader)

IGB REIT AGM 2017

As I mentioned earlier, the turnout was only about 25% of Public Bank’s. The ballroom started to fill out as the management team arrived.

IGB REIT AGM 2017
Pretty dismal turnout
IGB REIT AGM 2017
All set for AGM
IGB REIT AGM 2017
A familiar face from Public Bank’s AGM
IGB REIT AGM 2017
The management (4th from right is the main man).
IGB REIT AGM 2017
Spot Ms Elizabeth Tan on the left (Chief of Operations for the Gardens Mall)
IGB REIT AGM 2017
A closer look  : )

Remember my post on the CEO of Axis REIT – Leong Kit May? Well, it looks like IGB REIT is giving them a run for their money with their Chief of Operations (Gardens Mall) Ms. Elizabeth Tan. All jokes aside, she has been doing a good job, the whole team has.

This time around, the questions from shareholders were much better compared to Public Bank’s. The main topic of discussion was the parking bays at the malls. One particular suggestion was really good – Instead of having green and red lights to indicate and empty spot, a shareholder suggested that management instead put up only one green light (saving 50% of costs). As he astutely pointed out, no one looks for the red light.

Notice Mr. Singh from Public Bank’s AGM a month earlier, he attended this meeting as well. Though his complaints were nonsense in my opinion – He complained about the KTM’s being congested and packed. Dude, that’s a good thing. Also, it’s out of the management’s control. 

Findings

I found the management team of IGB REIT to be practical. These guys know what they’re doing. Tenancy for Mid Valley and The Gardens has never been an issue as they’ve a long queue of tenants waiting to rent. The issue right now is with the weak economy, it’s tough for IGB REIT to raise rental rates by a substantial amount. They’ve indicated that the rates however, will not be lowered but instead remain stagnant or raised slightly.

Even with the economy in bad shape, IGB REIT has managed to cut costs and increased profits in 2016. That is why their share prices has been going up. My confidence in the management has been greatly boosted after the AGM. I’m now waiting for the right price to add more of the REIT to my portfolio.

I’ve tried my best to take as many pictures as I could that day although they could’ve been better. I’ll practice my photography. Tips and suggestions on what you’d like to see the next time are welcome!

Thank you.