AirAsia AGM 2017 – RM500 Flight Voucher

AirAsia’s 2017 AGM

First off, do forgive me for the lack of Facebook updates this time around as I was feeling a little under the weather throughout the day. That being said, I had a marvelous time attending AirAsia’s 2017 AGM this year with my newfound friends – Steve and Heng.

I arranged to meet up with them at Subang’s LRT station at 8 am. Steve had graciously volunteered to give us a ride to the Asian Aviation Centre Of Excellence where AirAsia’s AGM was to be held at 10 am. We arrived with an hour to spare and set about registering ourselves for the meeting first. Next up was the food!

The Food

There were significantly fewer shareholders attending the AGM this year so registration was swift and smooth for us.

We headed for the food next and this was what AirAsia served up. I think it’s similar to what you’d get on their flights. Compared to some of the other AGMs I attended, AirAsia’s nasi lemak was amazing!

Air Asia AGM 2017
AirAsia’s Nasi Lemak

The Annual General Meeting

AirAsia’s 2017 AGM was truly well run. The questions posed by shareholders were well-thought out and intelligent. The management revealed their capabilities and experience through their answers as well as video presentations.

AirAsia AGM 2017
The AGM
Air Asia AGM 2017
People rushing forward after the AGM
AirAsia AGM 2017
Sir Francis!

AirAsia 2017 Doorgift / Goody Bag

AirAsia AGM 2017
RM500 Flight Voucher

The doorgift this year was similar to the previous year’s. All attending shareholders got a RM500 flight voucherHoliday, here I come!

The terms and conditions of the voucher will be delivered together with the vouchers. I’ll update accordingly. Another fantastic thing about AirAsia is their annual report, they’re actually making money through endorsements and sponsors with their reports! I’ve requested for mine to be delivered so again, I’ll update when I get it.

My very lucky friend Steve managed to get his cap signed by Tan Sri Tony Fernandes and Ms. Aireen Omar.

AirAsia AGM 2017
Autographed Cap

Findings from AirAsia’s 2017 AGM

Logistics for AirAsia

The management’s plan to venture into the logistics industry was one of the airline’s strategies I found to be the most exciting. With over 200 aircraft at AirAsia’s command and tons of belly space in those said aircraft, the plan seems to be a remarkably viable one.

“Companies like Amazon were planning to buy airlines and incorporate them into their logistics operations. AirAsia already has an airline.” Tony Fernandes on the management’s vision of AirAsia as a future logistics player. AirAsia is currently in talks with POS Malaysia and Singapore Post with possible partnerships and cooperations.

No Merger with AAX

At the AGM today, AirAsia Group CEO Tan Sri Tony Fernandes said the merger was never tabled to the board of directors, and the management remains in their belief that both short and long haul operations should be separated.

“AirAsia’s position is very clear, the board has never discussed this and there is no merger at all,” he said.

“The whole purpose of setting up AAX as a separate company, is because we believe it should be separated, and 10 years on we still believe that,” he added.

This came amid wild speculations from research analysts on potential mergers between the two airlines. The statement from Fernandes should put them to rest.

Special Dividends

Tony Fernandes also mentioned his plans for several special dividends for shareholders as AirAsia unlocks value from the assets it currently owns. Currently in the mix are the sale and disposal of Asia Aviation Capital (AAC), AirAsia’s leasing arm. Other potential assets mentioned were the 50% owned Academy – Asian Aviation Centre Of Excellence as well as stakes in companies such as Expedia.

Fernandes plans to pay out special dividends every 2 -3 years if and when AirAsia manages to dispose of their many assets and stakes.

Digitalization and Market Share

AirAsia is moving ahead of its competitors through technology. The airline plans to utilize their vast database of customers via their many planned digital platforms. From increasing ancillary sales on flights by understanding their customers better to grabbing and retaining market share through their BIG loyalty program.

There are many innovations and new things coming to AirAsia in the not too distant future. While I’m excited by some, I’m equally unsure about some of the initiatives mentioned. We shall see.

End.

At 6 pm yesterday, AirAsia released their Q1 2017 results which saw net profit drop by 29.8% to RM615.81 million. A key contribution to the drop in net profit is the sharp increase in staff cost by 27% as the airline aims to prevent a shortage of pilots by offering more attractive remuneration packages.

Many of you would’ve been shocked at the dip in AirAsia’s price on 24 May 2017 mainly due to the bad results of AAX. I am hoping for a further drop in price today as I am looking to purchase more of the stock.

I very much still believe in the management team at AirAsia and I’m confident of a good year ahead for the airline.

What do you think of AirAsia? 

Thanks for reading and a special thanks to Steve for the ride to the AGM!

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!