3Q21: Impacted By Prolonged Lockdown
STMK’s 3Q21 results were marginally below expectations due to the impact of the prolonged lockdown on the premium growth of its Family Takaful business. That said, recovery is underway as the lockdown measures ease. 9M21 net premium growth of 6% and a relatively stable earnings trend are also commendable given the challenging environment. As such, current depressed valuations (-2SD below historical mean PE) are an opportunity to accumulate. Maintain BUY and target price of RM4.80.