KUALA LUMPUR: CIMB Equities Research expects Tune Ins Holdings Bhd to possibly report a weaker set of financial results for the first quarter ended March 31, 2015 due to poor tourist arrivals in Malaysia.

It said on Tuesday the insurance company, which is expected to release its results on later Tuesday, to see its results also impacted by softer passenger growth for AirAsia in January to February 2015.

CIMB Research said this would have affected the growth of its travel insurance unit.

“However, we are encouraged that the momentum has picked up in March. We see the possibility of a cut of 10%-13% in our net profit forecast for FY15.

“For now, we retain our EPS forecasts and dividend discount model-based target price (cost of equity of 9.2%, long term growth of 5%).

“We see weaker 1Q15 earnings as a hiccup and continue to rate the stock as an Add, predicated on the bright growth prospects for (1) the travel insurance business, and (2) the non-life insurance unit in Thailand,” said the research house.