TQM makes stock move to boost liquidity
TQM Corporation, a SET-listed insurance broker, is splitting its par value from 1 baht to 50 satang on Jan 13 to enhance its liquidity in the stock market.
Unchalin Punnipa, TQM’s chairman and president, said the decision was made after unanimous approval from shareholders at an extraordinary general meeting on Dec 23 to increase the liquidity of the company’s stock as well as expand the investor base.
While some insurers have suffered during the Covid-19 pandemic, Mr Unchalin said TQM continues to thrive even amid the Omicron outbreak as consumers have additional health concerns and want to avoid risk by buying more insurance online.
In addition to health insurance, the company reported a rise in car insurance sales as consumers recognise the necessity of insurance policies during the pandemic, he said.
Mr Unchalin said the share price of the company has been pressured by negative sentiment about the insurance industry, with some companies buckling because of the surge in claims from Covid policies offering lumpsum payments.
TQM remains optimistic because it is an insurance broker that functions as a middleman between the customer and insurer, meaning the company bears no risk in terms of paying claims, he said.
Moreover, Mr Unchalin said TQM has strong growth potential.
The company generated 95% of its 2020 operation results in the last three quarters of 2021, he said.
Operations in the fourth quarter of 2021 also showed an uptrend and sustained growth following the third quarter, said Mr Unchalin.
“I am confident we will be able to reach a record high in operation results this year,” he said.
“I expect to achieve up to 1.75 billion baht in insurance premiums with a net profit margin of at least 23% this year.”
I expect to achieve up to 1.75 billion baht in insurance premiums with a net profit margin of at least 23% this year. UNCHALIN PUNNIPA Chairman and president, TQM