Tune Ins Holdings Bhd - No retuning by new maestro
Target RM2.83 (Stock Rating: ADD)
Our meeting with the new CEO of Tune Ins, Mr. Junior N. Cho, reinforced our view that he is the right candidate to lead the company, given his experience in the insurance, e-commerce and airline sectors. We also draw comfort from the fact that the management team is intact despite the departure of the previous CEO. We do not expect the new CEO to change significantly the strategic direction of the company. Tune is still an Add, premised on the swift expansion of its travel insurance business in the region, with exposure to 30 countries. Our DDM-based target price (COE of 9.2%; LT growth of 5%) increases as we roll it over to end-2015.
What Happened
Yesterday, Tune Ins Holdings (TIH) appointed a new CEO, Mr. Junior N. Cho (a South Korean in his 40s) to replace Peter Miller, who had resigned and will leave the company on 17 Nov. The company held a meeting for analysts with the new CEO this morning.
What We Think
The meeting with the new CEO reinforced our view that his work experience equips him with the ability to lead and bring TIH to new heights. He plans to apply to TIH some of his experience in the sale of insurance products in South Korea, which is a more advanced market. To strengthen its e-commerce capabilities, the company also hired ex-AirAsia staffer, Al-Ishsal, as Digital Director. The new CEO shared with us his key initiatives, which do not deviate from the company’s strategic direction. These include (1) enhancing its platform for e-commerce to improve the customer experience in purchasing insurance through the Internet, (2) scouting for tie-ups with other airlines, and (3) building up its capabilities in B2B and B2C businesses. The key focus is on growing the travel insurance business but the company aims to increase its market share in other non-life insurance segments with its digital prowess.
What You Should Do
Investors should continue to accumulate the stock given the bright growth prospects for its travel insurance business in the region. We do not expect the change in CEO to derail its strategic plans for expansion, especially when the major shareholder, Tune Group, is actively involved in the management of the company.
Source: CIMB Daybreak - 05 November 2014
Target RM2.83 (Stock Rating: ADD)
Our meeting with the new CEO of Tune Ins, Mr. Junior N. Cho, reinforced our view that he is the right candidate to lead the company, given his experience in the insurance, e-commerce and airline sectors. We also draw comfort from the fact that the management team is intact despite the departure of the previous CEO. We do not expect the new CEO to change significantly the strategic direction of the company. Tune is still an Add, premised on the swift expansion of its travel insurance business in the region, with exposure to 30 countries. Our DDM-based target price (COE of 9.2%; LT growth of 5%) increases as we roll it over to end-2015.
What Happened
Yesterday, Tune Ins Holdings (TIH) appointed a new CEO, Mr. Junior N. Cho (a South Korean in his 40s) to replace Peter Miller, who had resigned and will leave the company on 17 Nov. The company held a meeting for analysts with the new CEO this morning.
What We Think
The meeting with the new CEO reinforced our view that his work experience equips him with the ability to lead and bring TIH to new heights. He plans to apply to TIH some of his experience in the sale of insurance products in South Korea, which is a more advanced market. To strengthen its e-commerce capabilities, the company also hired ex-AirAsia staffer, Al-Ishsal, as Digital Director. The new CEO shared with us his key initiatives, which do not deviate from the company’s strategic direction. These include (1) enhancing its platform for e-commerce to improve the customer experience in purchasing insurance through the Internet, (2) scouting for tie-ups with other airlines, and (3) building up its capabilities in B2B and B2C businesses. The key focus is on growing the travel insurance business but the company aims to increase its market share in other non-life insurance segments with its digital prowess.
What You Should Do
Investors should continue to accumulate the stock given the bright growth prospects for its travel insurance business in the region. We do not expect the change in CEO to derail its strategic plans for expansion, especially when the major shareholder, Tune Group, is actively involved in the management of the company.
Source: CIMB Daybreak - 05 November 2014
