Cheap Valuation, Number Of TUGU Shareholders Increases Rapidly

JAKARTA - Shareholders of PT Asuransi Tugu Pratama Indonesia Tbk (Tugu Insurance/Tugu) experienced high growth in recent months due to low valuation.

Kiwoom Sekuritas analyst Abdul Azis said the generalized insurance industry showed a positive trend in the number of shareholders and foreign capital flows, where TUGU recorded the highest growth.

"In the TUGU case, the number of shareholders at the end of December 2023 reached 6,377. However, at the end of November 2024 the number of shareholders reached 9,628. This means that there was an increase of 3,251," said Azis quoting Antara.

The number of TUGU shareholders surpassed the 9,000 mark in the last two months. For the first time in October 2024, the number of TUGU shareholders reached 9,315, an increase of 1,457 compared to the previous month.

Then, the increase also occurred again in November 2024. The number of TUGU shareholders reached 9,628, an increase of 313 compared to the previous month.

In addition to the number of shareholders, foreign capital flows to the general insurance sector are still dominated by TUGU shares.

"Of the total Rp 62 billion of foreign funds that entered public insurance stocks, foreign inflows that entered the TUGU reached Rp 60.5 billion and the largest," he said.

Azis melihat bahwa antara jumlah pemegang saham dengan inflow asing cenderung berjalan yang menunjukkan saham TUGU memang diburu.

The position of strong TUGU in the industry, positive growing financial performance, quite liquid shares in the sector, and low valuation are said to be the main reason why the number of TUGU shareholders continues to rise.

Similarly, Phillip Sekuritas analyst Edo Ardiansyah said that although TUGU shares fall into the small & mid cap stock category, it means that they have a small market capitalization value, the trade liquidity still allows fund managers to enter and invest.

In addition to the matter of transaction liquidity, Edo also observed the valuation of TUGU shares which had been heavily discounted.

Rasio price to book value (PBV) TUGU at 0.4x. Meanwhile, general insurance for the PBV ratio is in the range of 0.8-1.0x, banking 2x, and IDX Finance 1.85x. This means that the potential for upside for TUGU is open," he said.

Another advantage is that the general insurance issuer of PT Pertamina (Persero) has consistently distributed dividends with an attractive payout ratio or yield or yield, so he considers it reasonable for local and foreign investors to participate in hunting down TUGU shares throughout 2024.