Highlights
KLSE: RCECAP (9296)       RCE CAPITAL BHD MAIN : Finance
Last Price Today's Change   Day's Range   Trading Volume
1.62   +0.01 (0.62%)  1.61 - 1.62  147,600
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Overview

Market Cap: 583 Million
NOSH: 360 Million
Avg Volume (4 weeks):152,562
4 Weeks Range:1.54 - 1.63
4 Weeks Price Volatility (%):
88.89%
52 Weeks Range:1.06 - 1.72
52 Weeks Price Volatility (%):
84.85%
Average Price Target: 2.10
Price Target Upside/Downside: +0.48
Stamp duty exempted for year 2019

Financial Highlight

Latest Quarter | Ann. Date 30-Sep-2018 [#2]  |  14-Nov-2018
Next QR | Est. Ann. Date: 31-Dec-2018  |  08-Feb-2019
T4Q P/E | EY: 6.30  |  15.89%
T4Q DY | Payout %: 4.68%  |  29.46%
T4Q NAPS | P/NAPS: 1.5121  |  1.07
T4Q NP Margin | ROE: 36.25%  |  17.02%

Headlines

Date Subject
15-Jan-2019 Counter with momentum today!! RCE Capital Bhd
02-Dec-2018 (CHOIVO CAPITAL) Lets talk about RCE CAPITAL (RCECAP)
15-Nov-2018 [转贴] 5分钟看懂 RCECAP(9296) 2019年 Q2季报 ~ 第一天
07-Sep-2018 [转贴] RCECAP 股东大会 6-9-2018 @ Tropicana Golf & Country Resort ~ 第一天
07-Sep-2018 Mplus Market Pulse - 7 Sept 2018
24-Aug-2018 [转贴] 5分钟看懂 RCECAP(9296) 2019年 Q1季报 ~ 第一天
03-Aug-2018 [转贴] RCE資本是能以守為攻的成長型股息股~RCECAP - Alex Shee
02-Aug-2018 Technical Analysis - RCE Capital
02-Aug-2018 [转贴] 5分钟看懂RCECAP 2018年报重点 - 第一天
22-Jun-2018 Technical Analysis - RCE Capital
07-Jun-2018 Daily Technical Highlights – (RCECAP, RGB)
05-Jun-2018 Technical Analysis - RCE Capital
29-May-2018 [转贴] 5分钟看懂 RCECAP(9296) 2018年 Q4季报 - 第一天

Business Background

RCE Capital Bhd is engaged in the business of investment holding and provision of management services. The company operates in two segments: Consumer financing which is involved in general consumer loan financing; Investment holding which is involved in investment activities, provision of management services and provision of factoring and confirming. The group operates substantially in Malaysia.
Analyze this stock with MQ Trader system

  7 people like this.
 
Choivo Capital https://klse.i3investor.com/blogs/PilosopoCapital/142803.jsp

http://www.rce.com.my/docs/news/Kenanga%20Report.pdf

http://www.rce.com.my/docs/news/Maybank%20Research%20Report%20-%20RCE%20Capital%20Berhad%2020.09.2016.pdf

Kindly refer to this. It should answer most if not all your questions.

=====

eskay67 As commented above, negative operating cash flow merely reflects asset / receivables growth financed from borrowings and/or equity fund raising. While RCE Cap target segment is mainly civil servants for personal loans, AEON Credit targets broader micro financing segments as well as credit card, e-money and certain other product segments. While current ROE level of RCE Cap is slightly lower than AEON Credit, the figures are still pretty good. My conclusion : RCE Cap does seem to be undervalued stock. Can’t see any reason why price level should not command certain premium over NTA per share, which currently stands around RM1.60 per share (30 Sep 2018).

commonsense Hi Pc Tan,

I see what u mean on them taking debt to finance the dividend as the cfo was negative in 3q18.
But is that not just because the revenue from the sales has yet to turn to cash (stilk under receivable) . Because i saw that aeon credit cash flow statement is similar as well. Is there any other company in the industry that differs from these 2?

Hi USApg,

So does this mean rce cap is cheaper? Cause only trading at 6.0x? Or its cheap because of something else?
15/11/2018 11:28
21/11/2018 14:50
singh1 10 years ago ago the share price was at today's level. So on that side of things, the returns are a
wonderful Zero percent !!!
Dividends over the 10 year period amounts to about 40 sens. Invest 160 sen and get 40 sens over 10 years amounts to a yield of 2.5% per year.
Will be better off placing the investment in FD and enjoy a good night sleep. No tension from the ups and downs of the marketplace.
What do you guys think? Makes sense or not? Correct me if I am wrong. Thanks.
25/11/2018 08:33
Kensington singh1, to arrive at the above conclusion, have you taken into consideration of any capital changes between 2012 and 2016, i.e. BI, RI and share consolidation? That might give us a more accurate picture. Thanks.
25/11/2018 09:07
singh1 The observation was made with reference to data from google as follows. I wonder too if the data takes into account all changes that have occurred during the said period.
https://www.google.ca/search?q=rcecap+share+price&rlz=1C1CHWA_enCA635CA669&oq=rcecap&aqs=chrome.1.69i57j0j69i61j0l3.6423j0j7&sourceid=chrome&ie=UTF-8
25/11/2018 22:57
Choivo Capital It does. Study what happened in 2013-2014.

===
singh1 The observation was made with reference to data from google as follows. I wonder too if the data takes into account all changes that have occurred during the said period.
https://www.google.ca/search?q=rcecap+share+price&rlz=1C1CHWA_enCA...-8
25/11/2018 22:57
26/11/2018 10:05
(S = Qr) Philip Hi Singh1, I may be wrong on this, but I think your conclusion on price alone as a factor of investing in stocks is pretty flawed. Example, the house I bought in puchong was pretty low for a good 10 years before suddenly the price jump to catch the value of the location in recent years. So price and value is unconnected from my opinion,

In 2009( best year in Malaysia), rce did around 200m revenue, the net assets per share is 40 cents, earnings is 9 cents.
In 2018( after the worst set of years in Malaysia), rce did around 245m revenue, net assets per share is 151 cents, earnings is 26 cents.

If you assume that IMDb d didn't exist, and market factors from our spending (usd3.0 to usd4.5 exc) has no effect on business, then yes fd would have been a much better investment. But imagine if you had bought 10k every quarter from 2009-2018( knowing that you had a solid business and just keep on buying consistently), the dollar cost averaging itself u would realize that your average buying cost + dividend would be around rm1.20.
27/11/2018 10:46
(S = Qr) Philip So my question is, do you think our country which had 7 years of bad economy will be balanced out by 7 years of good economy in the future? ( Past results doesn't guaranteed future performance)

And if you think Malaysia will catch a break sooner or later, do you think a company that averages 36% net profit during the bad times will outperform during the good times?

Basically it's like buying that semi-d in puchong for 300k, you don't know what the value will be like, but the location will almost guarantee value sooner or later.

Hope this gives you more clarity. Until then, buy and hold!
27/11/2018 10:52
leong87654321 Forecast TP is rm 1.95. Do not know when? Wait .........wait
27/11/2018 22:04
darkangell slow2 wait
27/11/2018 22:57
Vivian Hee Drop to 1.45
30/11/2018 10:45
gladiator Why today drop?
30/11/2018 11:44
johnbrooks Choivo, read ur research. Like the company because of the valuation. Looks super cheap. But got some questions. Hope u can answer. Sorry gonna be a bit long.

1) Why would anyone want to borrow money at 15-20%? Bank rakyat and mbsb is charging less than half of that. Does it mean that does that borrow from rce are those that got rejected by other instituition. Does this mean the clients are more risky? Or does it mean that rce is less stringent in giving out loan?

2) If other institutions growth for civil servant loan is slowing down, why do u think rce growth can accelerate? Should it not be at least growing (if not slowing) at the same rate as other instituition? I mean bank rakyat will still try n chase the same customer as rce right?

3) Previously mbsb also has a low NPL compared to other banks. But when the merger deal between rhb, cimb and mbsb were launch, due diligence finding show that mbsb actually is way lineant in recognising NPL. Is it the same case for RCE? I mean if they are getting clients which are rejected by MBSB, it should also mean that the clients are riskier which means NPL should be higher as well. Is there a risk of bnm forcing them to recognise any npl more stringently in line with other banks?

4) Recently becoz of the high household debt, even public servants and glc employees find it hard to apply for loan. Some of the glc has stricten the condition to enable employee to apply for a salary deduction. If not mistaken they have reduce the maximum net salary ratio to debt payment to 60% from the previous 75%. This would affect business like rce right?

5) Another risk is that the company business is dependent on the size of the civil servant. From my understanding the new govt is planning to reduce the civil servant size. Currently i think they have already reduce and slow down new hires. Those position that are already retired are not being replace (just asked any of ur friends working w the govt). Most new hire are based on contract (not entitled to salary deduction scheme). This would potentially reduce the company business right?

6) what is your profit target for 2019?
04/01/2019 16:34
Choivo Capital Dear john,

Thank you for the questions. They are fair ones, and i've asked the same questions when researching this company.

Some is already answered in the article, you may study further by reading the research reports from kenanga and maybank.

The rest, well, i'm not one to take from your the pleasure of finding out on your own.

Its not in my interest to fry up the price, if my research is right, it should increase on its own volition.

I've enclosed them here, and an article i wrote december 2017 on the valuation of financial institutions.

http://www.rce.com.my/docs/news/Maybank%20Research%20Report%20-%20RCE%20Capital%20Berhad%2020.09.2016.pdf

http://www.rce.com.my/docs/news/Kenanga%20Report.pdf

https://choivocapital.com/2018/11/28/the-valuation-of-financial-institutions-and-why-coldeye-is-wrong-on-mbsb/
04/01/2019 16:42
Alex™ rce macam yes. But i don't like their balance sheet. Any loan default then gg. Yes ROE is high, it's because of debt-leveraged business model, something like airasia.

Div also cantik. Make your call.
04/01/2019 16:47
Choivo Capital Alex.

You are correct. Please continue thinking that way.
04/01/2019 16:47
Alex™ ur aeoncr more gooding. Too bad i sold for technical reason. Amdui now
04/01/2019 16:48
Choivo Capital Yes, Aeoncr is a better business i think. But given the price, i prefer rce. Still, i have some aeoncr in my port.
04/01/2019 20:01
KLCI Going Heaven this looks really good some sell to me!
13/01/2019 16:13
bctan2005 what happens today?
14/01/2019 11:31
gladiator today up
14/01/2019 15:31
cheoky good uptrend.
15/01/2019 11:17
15/01/2019 15:05
PotentialGhost Those pukimak small fish day sell night sell sell everyday.
18/01/2019 11:25
Walao Walao Eh Hahahhhah, damn down price for collec
18/01/2019 11:56
GLNT The usual pump dump counter, buy 1.4++, sell 1.6++, then repeat forever. Done.
18/01/2019 12:02
Walao Walao Eh Noted, pump dump counter
18/01/2019 12:10
LaoTzeAhSir new high volume in 52weeks. n it's a dump. only insiders and operators who would know what's happening. the strong form of EMH.
18/01/2019 12:34
LaoTzeAhSir a good stock with terribly manipulated kind of share price movement. I'm out
18/01/2019 12:39
DaitoRyu Agreed LaoTze, however I'm going to hang on a for a while longer, it's also difficult to see where any growth is going to come from eventually, under their current strategy.
18/01/2019 12:55
qqq3 this is Azman Hashim toy....

not for u guys to invest.


this thing live or die, u think he cares meh?
18/01/2019 12:58
qqq3 this thing is used to finance a lot of his friends business that Arab Malaysia cannot do....and a lot of his pet projects that Arab Malaysia cannot do and will not do.....
18/01/2019 13:01
qqq3 u want to be involved in consumer financing, there are much better vehicles out there.....million times better.
18/01/2019 13:07
Choivo Capital Despite my position being large and thus unable to top up significant amounts, i generally find moments when prices drop for RCECAP to be quite useful. Because it its during these moments, that everyone let loose with all their pent up critique. Whether real or imaginary, logical or spurious.

And every time i read the critiques, i can't help but feel inclined to buy a bit more.

I kind of wish i saw this drop coming and made money on the difference, i did in fact have a feeling, but i've all but removed most action triggers related to technical or sentiment from within my system.

Well, whatever you're going to do, good luck. I know what i'll be doing.
18/01/2019 13:19
Choivo Capital I would suggest the people here to go and read the aeoncr forums from 2013 to 2018, and look at the price movements.

The similarity is uncanny. Haha.

Having said that, i do think AEONCR is a better business. Just much more expensive.
18/01/2019 13:21
Choivo Capital http://www.bnm.gov.my/files/publication/fsreview/en/2018/1h/ba_01.pdf

This is a fun read.
18/01/2019 13:52
Connie555 I don't see it as fun read at all. Hmmm...with your sceptical mindset, it should be the article is trying to feed u all that u want to hear, while he is at the other side selling u all his rce shares. Unethical, should we report to SC?
18/01/2019 14:06
Invest_888 I just bought at RM1.50. I believe this counter will be stable around RM1.6 to RM1.7. Moreover, got dividend around 4% per year. As long as Sino:US trade over no negative news. FBMKLCI Market will go up around 1700.
18/01/2019 16:17
Choivo Capital Go on Connie.

I'll wait eagerly for the request for appearance by SC. Hahaha. Please.

Buy, Sell or Hold. Do whatever you like, i have no preference. Price go down, i buy, price go up, i sell. Price stay the same i hold.
18/01/2019 17:42
Yi Heng 1.50 call me
19/01/2019 21:55
LaoTzeAhSir Rce is getting exposure in Singapore now.
25/01/2019 10:40
LaoTzeAhSir https://www.klsescreener.com/v2/news/view/483594 认购新企1.2亿私债 RCE资本进军金融科技
25/01/2019 10:42
LaoTzeAhSir https://www.facebook.com/SinChewDaily/?__tn__=%2CdkCH-R-R&eid=ARAo-4uIpM2mrZ4-GomgsnhEasERe6e7RrYARAN7ADG05rxEgJF5DYqtBWWhcnclg1U7e03d6hsWJbyG&hc_ref=ARS5kIf-kRBCa9Ph_lTSSri5Dpnyo5SKnrh_nN3Abc_RfJM1AoTEneerLEHcu8CNfoo&fref=nf&hc_location=group lay off 16k government workers. but the matter of fact is, they once said to do the same, while the government workers actually increased from million to 1.million.
26/01/2019 00:11
sonic008 Post removed. Why?
26/01/2019 00:11
LaoTzeAhSir from 1 million to 1.7 million*
26/01/2019 00:11
zhangliang can enter with steady DY, consistent profit growth, no fear!!
26/01/2019 11:33
KLCI Going Heaven this is literally free money from poor people (B40)
27/01/2019 22:02
LaoTzeAhSir covered full page in business weekly
03/02/2019 18:40
Choivo Capital can send the article?
04/02/2019 10:34
yiniugongxiong RCECAP 9296 INFORMATION OVERVIEW 1
https://yiniugongxiong.blogspot.com/2019/02/rcecap-9296-information-overview-1.html
13/02/2019 18:16
LouiseS Last 5 years EPS on increasing trend, increased by 89.5% over last 5 years, PE ratio at 6.2, ROE 16%, and dividend yield 4.97%.

https://louisesinvesting.blogspot.com/2019/02/preliminary-screening-of-counters-with.html
16/02/2019 16:41


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