The call on the stocks for General insurer LPI Capital Bhd and semiconductor assembly and test services provider Unisem (M) Bhd has been upgraded at Affin Hwang Investment Bank Bhd (AHIB) today following the release of their full year results yesterday.

Unisem has also been upgraded at Kenanga Research in a note released today.

In its note, AHIB said LPI's 2023 numbers beat its and street estimates, thanks to another decent fourth quarter while its 2023 performance was supported by the investment portfolio's strong performance.

It upgraded its rating on LPI to 'buy' from 'hold', with a higher 12-month target price of RM14.00. The counter ended yesterday's trading at LPI RM12.58.

LPI posted a net profit of RM313.7 million for the financial year ended Dec 31, 2023 (FY23), up 24% from FY22, on the back of RM1.905 billion in turnover, up 17% year-on-year (yoy).

It noted that the absence of prosperity tax partially underpinned the more robust profit growth in 2023. In 4Q23, it said the insurance service results turned more favourable for motor and miscellaneous, while for 2023, it saw a turnaround in growth especially for the motor segment.

Lonpac has declared a second interim dividend of 40.0 sen per share, compared to 35.0 sen per share in FY22, bringing its total dividend payment for FY23to RM262.9 million, representing 83.8% of its net profit attributable to shareholders. Its first interim dividend of 26.0 sen was paid in September 2023.

AHIB has upgraded Unisem to 'hold' from 'sell', with a higher 12-month target price of RM3.30, noting that the worst was likely behind while sector sentiment was improving. Unisem closed at RM3.26 yesterday.

"Earnings recovery should continue in subsequent quarters, but we do not expect a return to peak earnings in FY24," it said.

Unisem's net profit for the financial year ended Dec 31, 2023 (FY23) shrunk 79% yoy to RM80.2 million on the back of RM1.440 billion, down 19% from FY22.