KLSE: RCECAP (9296)       RCE CAPITAL BHD MAIN : Finance
Last Price Today's Change   Day's Range   Trading Volume
3.29   +0.03 (0.92%)  3.22 - 3.30  141,200
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Market Cap: 1,276 Million
NOSH: 388 Million
Avg Volume (4 weeks):283,584
4 Weeks Range:3.03 - 3.37
4 Weeks Price Volatility (%):
52 Weeks Range:1.88 - 3.37
52 Weeks Price Volatility (%):
Average Price Target: 2.39
Price Target Upside/Downside: -0.90
Stamp duty exempted for year 2021

Financial Highlight

Latest Quarter | Ann. Date 30-Jun-2021 [#1]  |  12-Aug-2021
Next QR | Est. Ann. Date: 30-Sep-2021  |  10-Nov-2021
T4Q P/E | EY: 9.30  |  10.76%
T4Q DY | Payout %: 3.64%  |  33.87%
T4Q NAPS | P/NAPS: 2.0291  |  1.62
T4Q NP Margin | ROE: 44.72%  |  17.44%


Date Subject
29-Sep-2021 Trading Stocks - RCE Capital
13-Aug-2021 【行家论股/视频】RCE资本 首季财报超越预期
13-Aug-2021 Mplus Market Pulse - 13 Aug 2021
01-Jul-2021 Mplus Market Pulse - 1 Jul 2021
27-May-2021 [转贴] 5分钟看懂 RCECAP(9296) 2021年 Q4季报 ~ 有如预期般的好业绩 ~ 第一天
10-Feb-2021 【行家论股/视频】RCE资本 信贷成本可恢复正常
10-Feb-2021 [转贴] 5分钟看懂 RCECAP(9296) 2021年 Q3季报 ~ 再次超越预期的业绩? ~ 第一天
23-Dec-2020 RCE资本上挑RM2.65/敏源
14-Nov-2020 Slow Crawling Kraken - RCECAP (9296)
12-Nov-2020 RCECAP(9296)业绩反弹,是否要追高呢?
11-Nov-2020 [转贴] 5分钟看懂 RCECAP(9296) 2021年 Q2季报 ~ 超越预期的业绩? ~ 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

  8 people like this.
JayC88 hopefully got chance to buy tmr
10/06/2021 12:51 PM
Goh123 Major shareholder buy in again huat ar
11/06/2021 5:24 PM
Moolala good earnings up ahead
11/06/2021 6:55 PM
observatory Published in The Edge today. "Positive views on RCE Capital maintained, despite FMCO"
12/06/2021 2:59 PM
Moolala The Edge has been publishing quite a few articles on RCEcap as of late, hopefully more fund managers will notice this gem and push the price up higher
12/06/2021 3:03 PM
observatory I’ll watch out for these few factors:

1. Revenue growth – can expect little growth given the loan book growth has slowed considerably. The management has turned cautious even before the pandemic. But I agree as it’s better to be too cautious than overly aggressive in this personal loan business

2. Asset quality – continues to hold up very well. It’s helped by the job security of its customer base (civil servant) where repayment is mostly through salary deduction.

3. Interest rate – It has benefited from lower funding cost in the past few years during the interest rate down cycle. But 10Y Malaysian government bond yield has recovered from the 2.5% low last year to current 3.2%. How fast will it rise in future, and how might it affect future cost of borrowing and therefore the net margin?

4. Valuation – This is a contentious topic. Some investors here feel that it’s undervalued. Based on Maybank’s projection of FY22E book value of RM2.37, currently RCE trades at 1.24X PB against expected FY22E ROE of 15.1%.

Instead of comparing against valuation of another lender like Aeon Credit (which stirs up a different kind of disagreement with AEONCR investors), I look up at BIMB, which also offers a lot of personal loan to civil servants (although also other banking, stock brokerage and insurance thrown in).

AM Invest projects 2021E BV at RM4.08, which is 0.84X PB, against FY21E ROE of 12.8%. In this not perfect comparison, RCE Capital doesn’t look too much undervalued in a relative sense. Besides, BIMB being a larger cap stock and more liquid could attract larger funds, and therefore in theory should enjoy higher valuation.

Anyway, like it or not, the share price is determined by the market. For me it's good enough to just hold and collect dividends regardless of share price movement, as long as fundamentals remain sound.
12/06/2021 3:56 PM
kywoo I do not agree that we should emphasize too much on the price versus book value factor in determining the fair value of a profitable and well managed stock. We should look at the company as an on going concern and not on a liquidation basis. If a company is not doing well and has been losing money every year, then the book value or net asset value becomes important. If the net asset value is much higher compared to the share price, it makes sense for some party to take over the company and strip its assets for sale. This is especially true for non performing property companies.

Take for example the net asset value of Nestle Malaysia. It is only 3.16 and yet the share price today is 135.4. Hence, the share price is 43 times its net asset value. This is because everyone expect Nestle to operate indefinitely over the foreseeable future and liquidation of its assets as unlikely.

The same principle should apply to RCE Capital. As the company is well managed and has a track record of increasing profit and dividend over the years, the more important consideration would be PE ratio and dividend yield. Barring unforeseen circumstances, the company is expected to operate well into the foreseeable future and continues to grow. Hence, the book value to price ratio becomes less relevant.

As far as I am concerned, if the PE ratio of this company is well below 10 and its dividend yield is above 5.5%, I will continue to accumulate this counter slowly but surely. In fact, I started collecting this counter at around 1.60 early last year because I was attracted by its fundamentals. My only limitation is availability of cash to buy more.
15/06/2021 9:51 PM
observatory Hi kywoo, I certainly agree RCE Capital is well managed.

I cited the PB and ROE valuation method not because I value it on liquidation basis, but because it’s commonly used for most financial stocks. Maybank and RHB analysts also use this method to derive their TPs for RCE.

Thanks for sharing your investment journey on RCE. I could imagine adding this stock if I have not owned it as I feel it’s fairly valued (though you think it’s still undervalued). But like you, I’ve accumulated before Covid-19, though not anymore now given it’s one of my top holdings and I want to avoid too much concentration.
16/06/2021 12:00 AM
JayC88 rm3 surely is a tough nut to crack, but i'm happy buying up the dips. good one to hold long term and reap the dividends.
17/06/2021 6:19 PM
observatory Last Sat The Edge ran an article with the title “Bank Rakyat’s continued reliance on personal financing raises questions”. It talks about the space of personal financing which could provide useful info to RCE Capital shareholders.

I summarize the key points as below:

1. Bank Rakyat has a personal financing portfolio of RM59 billion, making up the 76% of total financing portfolio of RM78 billion.
2. For comparison, the size of Malaysian personal financing/ loan is RM104 billion. (RCE Capital’s portfolio is only RM1.7 billion)
3. Gross impaired financing is 2.12% (total portfolio). Compare against RCE Capital GIL at 4.0%
4. A BNM study in 2018 showed that Malaysian civil servants spend more than half their monthly salaries repaying debts compared with one-third for average borrowers.
5. Personal financing amounted to 34% of civil servants’ total debt as opposed to national level of 15%
26/06/2021 7:08 PM
Moolala Thanks for sharing
27/06/2021 2:59 PM
kywoo Thanks for sharing Observatory. I think RCE Capital has learn an expensive lesson in 2013. They were then too aggressive in penetrating the loan market to civil servants. There was no proper internal controls. As a result of some changes to the lending rules, they made some big write offs. Since then, they are very careful in their lending, limiting the size and tenure of their loans.

It appears to me that they do not want quantity but rather quality in their loan portfolio. They try to control their portfolio growth to no more than 10% per annum. At the moment, their portfolio size of RM1.7 billion represent less than 2% of the total market potential. A lot of room for growth but they are in no hurry. I have full confidence in their management. Slow, steady and profitable.
29/06/2021 10:44 PM
C 88 https://malaysiastock.biz/Company-Announcement.aspx?id=1330501

30/06/2021 8:12 PM
keong118 2.5
06/08/2021 10:35 PM
ooihk899 QR sui, grats to all shareholders
12/08/2021 5:19 PM
ooihk899 Good chance next Q will declare a higher interim dividend
12/08/2021 5:33 PM
Moolala Solid as a rock
12/08/2021 6:13 PM
thesteward I strongly believe this one stand a v high chance get the digital banking licence.
31/08/2021 8:41 PM
ooihk899 The boss start buying since 3rd June until now. Hope something is brewing.
31/08/2021 9:55 PM
thesteward Solid co
06/09/2021 1:25 PM
thesteward Hope to cu at 5
06/09/2021 1:25 PM
thesteward Holding tight long term investment
06/09/2021 6:02 PM
ipohwhitecoffee Solid fundamental co. Tan Sri Azman keep on acquiring from open market.
06/09/2021 8:41 PM
thesteward Yes indeed . V prudent businessman Tan Sri.
06/09/2021 9:20 PM
up2_sky continue acquire..Up Up
07/09/2021 9:14 AM
Hu00mun Up up up ⬆️
07/09/2021 1:21 PM
Beethoven VCP liao la.. mari mari ohm
07/09/2021 5:24 PM
maximus . this stock is a hidden gem....
07/09/2021 6:48 PM
thesteward Holding tight tight
07/09/2021 8:19 PM
thesteward Pattern splendid liao hopefully next week spike
10/09/2021 12:11 PM
thesteward Wah beautiful close . Go down n then up above last high is a very nice pattern lo
10/09/2021 6:18 PM
1345 Post removed. Why?
12/09/2021 5:07 PM
thesteward Switching my finance shares to rcecap
14/09/2021 10:11 PM
Iseeyoubuy Hidden gem on Bursa, buying more
24/09/2021 10:36 AM
up2_sky what happen to RCECAP? hit so high
28/09/2021 12:08 PM
ipohwhitecoffee don't ask. just buy. lol
28/09/2021 12:13 PM
up2_sky lol..still can in now?
28/09/2021 12:39 PM
Moolala HOOT 9 E!!
28/09/2021 2:02 PM
yongleecheng RM 3.20
28/09/2021 5:35 PM
yongleecheng https://klse.i3investor.com/blogs/kianweiaritcles/2021-05-27-story-h1565271797.jsp
而且公司的nett profit margin非常高居然接近40%,我只能说这家公司真的是非常好赚了
28/09/2021 5:41 PM
blackchicken U.S. Bank Stocks Surge Toward Best Year Since 1997 on Fed Shift
By Matt Turner
Updated on 28 September 2021, 05:17 GMT+9
Sooner rate hikes would be a boost to banks’ lending revenue
Rally extends Monday, driving index to 37% gain this year
28/09/2021 10:49 PM
blackchicken https://www.businesstimes.com.sg/companies-markets/singapore-banks-get-bump-as-fed-signals-earlier-rate-hike-report
28/09/2021 11:00 PM
remus Hi i noticed the major shareholder, Tan Sri Azman been buying since pandemic last year
i.e. refer https://klse.i3investor.com/servlets/stk/annchsh/9296.jsp
However his shareholding been reduced to 53.59% vs ~60% last year.
How is this possible? Can help shed some lights? thanks

20-Sep-2021 195,359,784 (53.59%) TAN SRI AZMAN HASHIM / Cempaka Empayar S/B
20-Mar-2020 209,581,584 (59.45%) TAN SRI AZMAN HASHIM / Cempaka Empayar S/B
30/09/2021 10:32 AM
thesteward High chance digital banking license ?
30/09/2021 10:43 PM
thesteward https://www.theedgemarkets.com/article/paramountled-consortium-star-media-and-rce-capital-applies-digital-bank-licence
30/09/2021 10:44 PM
thesteward If today can maintain above 3.23 got chance next week spike . Not many if any short term retailers in this counter . A gem
01/10/2021 3:13 PM
thesteward Hopefully next week’s wave can bring us to 3.80
01/10/2021 3:52 PM
Iseeyoubuy I can see RCE become as expensive as TNB if they continue to do well. Will add more position soon, still cheap thou. Hidden gem to buy before more ppl realise this company.
11/10/2021 1:37 PM
blackchicken KUALA LUMPUR: The FBM KLCI pushed higher into midday as financial stocks continued their advance while other sectors erased earlier losses.

FBM KLCI on track to extend winning streak https://www.thestar.com.my/business/business-news/2021/10/13/fbm-klci-on-track-to-extend-winning-streak
13/10/2021 4:26 PM
blackchicken One of the best financial stocks in Bursa
13/10/2021 4:27 PM


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