Tune Protect expected to resume dividend payouts in FY25 on turnaround

PETALING JAYA: With a turnaround underway, there are expectations that Tune Protect Group Bhd would likely resume dividend payouts in financial year 2025 (FY25).

That is at least what TA Research expects, implying a 5.2% yield. It also expects a robust fourth-quarter 2025 performance as the peak travel season lifts results, benefitting Tune Protect meaningfully.

The momentum should extend into 2026, supported by Visit Malaysia Year, airline expansion initiatives and strengthening travel demand across Asia.

TA Research maintains its “buy” call on the stock with an unchanged target price of 48 sen a share based on 0.6 times 2026 price-to-book ratio.

The research house made no changes to its FY25 to FY27 earnings estimates.

The group reported a nine-month 2025 (9M25) net profit of RM20mil, accounting for 62.6% of TA Research’s full-year forecast. It deems the performance to be in line with expectations, with a stronger fourth quarter 2025 anticipated, amid peak travel season momentum.

The 9M25 performance improved substantially, with insurance service results improving to RM27mil versus a loss of RM0.7mil in 9M24. This led to a higher profit before tax of RM32mil.

The better showing was a result of increasing weightage of travel in its portfolio, favourable motor and fire claims experience and cost-optimisation efforts.