Highlights
KLSE: RCECAP (9296)       RCE CAPITAL BHD MAIN : Finance
Last Price Today's Change   Day's Range   Trading Volume
2.82   -0.03 (1.05%)  2.81 - 2.90  520,600
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Financials


Market Cap: 1,083 Million

Market Cap 1,083 Million
NOSH 384 Million

Latest Audited Result:  31-Mar-2020

Latest Audited Result: 31-Mar-2020
Announcement Date 24-Aug-2020
Next Audited Result: 31-Mar-2021
Est. Ann. Date: 24-Aug-2021
Est. Ann. Due Date: 27-Sep-2021

Latest Quarter:  31-Mar-2021 [#4]

Latest Quarter: 31-Mar-2021 [#4]
Announcement Date 25-May-2021
Next Quarter: 30-Jun-2021
Est. Ann. Date: 18-Aug-2021
Est. Ann. Due Date: 29-Aug-2021
QoQ | YoY   -2.00%  |    20.25%

Annual (Unaudited) ( EPS: 32.45, P/E: 8.69 )

Revenue | NP to SH 293,459  |  124,633
RPS | P/RPS 76.40 Cent  |  3.69
EPS | P/E | EY 32.45 Cent  |  8.69  |  11.51%
DPS | DY | Payout % 12.14 Cent  |  4.30%  |  37.40%
NAPS | P/NAPS 2.01  |  1.41
YoY   12.71%
NP Margin | ROE 42.47%  |  16.17%
F.Y. | Ann. Date 31-Mar-2021  |  25-May-2021

T4Q Result ( EPS: 32.45, P/E: 8.69 )

Revenue | NP to SH 293,459  |  124,633
RPS | P/RPS 76.40 Cent  |  3.69
EPS | P/E | EY 32.45 Cent  |  8.69  |  11.51%
DPS | DY | Payout % 12.10 Cent  |  4.29%  |  37.28%
NAPS | P/NAPS 2.01  |  1.41
QoQ | YoY   4.83%  |    12.71%
NP Margin | ROE 42.47%  |  16.17%
F.Y. | Ann. Date 31-Mar-2021  |  25-May-2021

Annualized Result ( EPS: 32.45, P/E: 8.69 )

Revenue | NP to SH 293,459  |  124,633
RPS | P/RPS 76.40 Cent  |  3.69
EPS | P/E | EY 32.45 Cent  |  8.69  |  11.51%
DPS | DY | Payout % -
NAPS | P/NAPS -
QoQ | YoY   3.20%  |    12.71%
NP Margin | ROE 42.47%  |  16.17%
F.Y. | Ann. Date 31-Mar-2021  |  25-May-2021


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Date Financial Result Financial Ratio Per Share Item Performance Valuation (End of Quarter) Valuation (Ann. Date)
F.Y. Ann. Date Quarter # Revenue PBT NP NP to SH Div Net Worth Div Payout % NP Margin ROE NOSH RPS Adj. RPS EPS Adj. EPS DPS Adj. DPS NAPS Adj. NAPS QoQ YoY EOQ Date EOQ Price EOQ P/RPS EOQ P/EPS EOQ P/NAPS EOQ EY EOQ DY ANN Date ANN Price ANN P/RPS ANN P/EPS ANN P/NAPS ANN EY ANN DY
31-Mar-2021 25-May-2021 31-Mar-2021 4 74,964 45,800 34,061 34,061 25,101 770,987 73.70% 45.44% 4.42% 358,599 20.90 19.52 9.50 8.87 7.00 6.53 2.1500 2.01   -2.00%   20.25% 31-Mar-2021 2.60 12.44 27.37 1.21 3.65% 2.69% 2.73 13.06 28.74 1.27 3.48% 2.56%
31-Mar-2021 09-Feb-2021 31-Dec-2020 3 77,855 46,679 34,756 34,756 - 732,700 - % 44.64% 4.74% 357,415 21.78 20.27 9.72 9.05 0.00 0.00 2.0500 1.91   5.35%   12.19% 31-Dec-2020 2.75 12.62 28.28 1.34 3.54% 0.00% 2.51 11.52 25.81 1.22 3.87% 0.00%
31-Mar-2021 10-Nov-2020 30-Sep-2020 2 75,921 44,158 32,992 32,992 21,359 715,551 64.74% 43.46% 4.61% 355,996 21.33 19.76 9.27 8.59 6.00 5.56 2.0100 1.86   44.55%   21.48% 30-Sep-2020 1.90 8.91 20.50 0.95 4.88% 3.16% 10-Nov-2020 1.94 9.10 20.93 0.97 4.78% 3.09%
31-Mar-2021 18-Aug-2020 30-Jun-2020 1 64,719 30,586 22,824 22,824 - 674,056 - % 35.27% 3.39% 351,071 18.43 16.85 6.50 5.94 0.00 0.00 1.9200 1.75   -19.42%   -5.37% 30-Jun-2020 1.90 10.31 29.23 0.99 3.42% 0.00% 18-Aug-2020 1.95 10.58 29.99 1.02 3.33% 0.00%
31-Mar-2020 16-Jun-2020 31-Mar-2020 4 72,993 37,845 28,324 28,324 21,040 673,303 74.29% 38.80% 4.21% 350,679 20.81 19.00 8.08 7.37 6.00 5.48 1.9200 1.75   -8.57%   19.37% 31-Mar-2020 1.49 7.16 18.45 0.78 5.42% 4.03% 16-Jun-2020 1.81 8.70 22.41 0.94 4.46% 3.31%
31-Mar-2020 18-Feb-2020 31-Dec-2019 3 72,502 40,975 30,980 30,980 - 641,927 - % 42.73% 4.83% 348,873 20.78 18.87 8.88 8.06 0.00 0.00 1.8400 1.67   14.07%   23.16% 31-Dec-2019 1.65 7.94 18.58 0.90 5.38% 0.00% 18-Feb-2020 1.69 8.13 19.03 0.92 5.25% 0.00%
31-Mar-2020 11-Nov-2019 30-Sep-2019 2 70,176 36,795 27,158 27,158 17,363 625,085 63.94% 38.70% 4.34% 347,270 20.21 18.27 7.82 7.07 5.00 4.52 1.8000 1.63   12.60%   15.80% 30-Sep-2019 1.55 7.67 19.82 0.86 5.05% 3.23% 11-Nov-2019 1.57 7.77 20.08 0.87 4.98% 3.18%
31-Mar-2020 21-Aug-2019 30-Jun-2019 1 66,938 33,285 24,119 24,119 - 610,479 - % 36.03% 3.95% 342,966 19.52 17.43 7.03 6.28 0.00 0.00 1.7800 1.59   1.65%   3.97% 28-Jun-2019 1.62 8.30 23.04 0.91 4.34% 0.00% 21-Aug-2019 1.60 8.20 22.75 0.90 4.40% 0.00%
31-Mar-2019 28-May-2019 31-Mar-2019 4 67,395 33,248 23,727 23,727 17,087 584,402 72.02% 35.21% 4.06% 341,756 19.72 17.54 6.94 6.18 5.00 4.45 1.7100 1.52   -5.68%   3.06% 29-Mar-2019 1.63 8.27 23.48 0.95 4.26% 3.07% 28-May-2019 1.63 8.27 23.48 0.95 4.26% 3.07%
31-Mar-2019 26-Feb-2019 31-Dec-2018 3 66,976 35,475 25,155 25,155 - 559,810 - % 37.56% 4.49% 341,348 19.62 17.44 7.37 6.55 0.00 0.00 1.6400 1.46   7.26%   9.77% 31-Dec-2018 1.47 7.49 19.95 0.90 5.01% 0.00% 26-Feb-2019 1.65 8.41 22.39 1.01 4.47% 0.00%
31-Mar-2019 14-Nov-2018 30-Sep-2018 2 64,964 31,256 23,452 23,452 13,600 544,014 57.99% 36.10% 4.31% 340,009 19.11 16.91 6.90 6.11 4.00 3.54 1.6000 1.42   1.09%   7.50% 28-Sep-2018 1.63 8.53 23.63 1.02 4.23% 2.45% 14-Nov-2018 1.54 8.06 22.33 0.96 4.48% 2.60%
31-Mar-2019 23-Aug-2018 30-Jun-2018 1 63,235 31,110 23,199 23,199 - 534,509 - % 36.69% 4.34% 340,452 18.57 16.46 6.81 6.04 0.00 0.00 1.5700 1.39   0.77%   10.85% 29-Jun-2018 1.52 8.18 22.31 0.97 4.48% 0.00% 23-Aug-2018 1.63 8.78 23.92 1.04 4.18% 0.00%
31-Mar-2018 28-May-2018 31-Mar-2018 4 63,242 30,073 23,022 23,022 13,678 519,794 59.42% 36.40% 4.43% 341,970 18.49 16.46 6.73 5.99 4.00 3.56 1.5200 1.35   0.46%   8.36% 30-Mar-2018 1.23 6.65 18.27 0.81 5.47% 3.25% 28-May-2018 1.33 7.19 19.76 0.88 5.06% 3.01%
31-Mar-2018 08-Feb-2018 31-Dec-2017 3 63,997 29,987 22,916 22,916 - 495,189 - % 35.81% 4.63% 341,510 18.74 16.66 6.71 5.97 0.00 0.00 1.4500 1.29   5.05%   5.24% 29-Dec-2017 1.50 8.00 22.35 1.03 4.47% 0.00% 08-Feb-2018 1.47 7.84 21.91 1.01 4.56% 0.00%
31-Mar-2018 09-Nov-2017 30-Sep-2017 2 61,565 29,931 21,815 21,815 10,225 480,611 46.88% 35.43% 4.54% 340,859 18.06 16.03 6.40 5.68 3.00 2.66 1.4100 1.25   4.24%   18.55% 29-Sep-2017 1.59 8.80 24.84 1.13 4.03% 1.89% 09-Nov-2017 1.59 8.80 24.84 1.13 4.03% 1.89%
31-Mar-2018 22-Aug-2017 30-Jun-2017 1 57,102 27,382 20,928 20,928 - 463,937 - % 36.65% 4.51% 338,640 16.86 14.87 6.18 5.45 0.00 0.00 1.3700 1.21   -1.49%   19.40% 30-Jun-2017 1.71 10.14 27.67 1.25 3.61% 0.00% 22-Aug-2017 1.65 9.79 26.70 1.20 3.75% 0.00%
31-Mar-2017 26-May-2017 31-Mar-2017 4 57,254 28,855 21,245 21,245 10,037 438,282 47.24% 37.11% 4.85% 334,566 17.11 14.90 6.35 5.53 3.00 2.61 1.3100 1.14   -2.43%   207.19% 31-Mar-2017 1.78 10.40 28.03 1.36 3.57% 1.69% 26-May-2017 1.83 10.69 28.82 1.40 3.47% 1.64%
31-Mar-2017 15-Feb-2017 31-Dec-2016 3 57,982 23,702 21,774 21,774 - 414,106 - % 37.55% 5.26% 333,957 17.36 15.09 6.52 5.67 0.00 0.00 1.2400 1.08   18.32%   67.45% 30-Dec-2016 1.36 7.83 20.86 1.10 4.79% 0.00% 15-Feb-2017 1.51 8.70 23.16 1.22 4.32% 0.00%
31-Mar-2017 03-Nov-2016 30-Sep-2016 2 56,160 25,503 18,402 18,402 - 386,376 - % 32.77% 4.76% 327,437 17.15 14.62 5.62 4.79 0.00 0.00 1.1800 1.01   4.99%   80.15% 30-Sep-2016 1.31 7.64 23.31 1.11 4.29% 0.00% 03-Nov-2016 1.23 7.17 21.89 1.04 4.57% 0.00%
31-Mar-2017 10-Aug-2016 30-Jun-2016 1 51,935 23,430 17,528 17,528 - 376,527 - % 33.75% 4.66% 324,592 16.00 13.52 5.40 4.56 0.00 0.00 1.1600 0.98   153.44%   85.74% 30-Jun-2016 0.705 4.41 13.06 0.61 7.66% 0.00% 10-Aug-2016 0.78 4.87 14.44 0.67 6.92% 0.00%
31-Mar-2016 26-May-2016 31-Mar-2016 4 44,302 11,101 6,916 6,916 45,671 456,716 660.38% 15.61% 1.51% 1,304,905 3.40 11.53 0.53 1.80 3.50 11.89 0.3500 1.19   -46.81%   -38.05% 31-Mar-2016 0.285 8.39 53.77 0.81 1.86% 12.28% 26-May-2016 0.75 22.09 141.51 2.14 0.71% 4.67%
31-Mar-2016 03-Feb-2016 31-Dec-2015 3 41,552 16,840 13,003 13,003 - 450,599 - % 31.29% 2.89% 1,287,425 3.23 10.82 1.01 3.39 0.00 0.00 0.3500 1.17   27.29%   315.30% 31-Dec-2015 0.27 8.37 26.73 0.77 3.74% 0.00% 03-Feb-2016 0.255 7.90 25.25 0.73 3.96% 0.00%
31-Mar-2016 05-Nov-2015 30-Sep-2015 2 39,043 13,858 10,215 10,215 134,071 434,137 1,312.50% 26.16% 2.35% 1,276,874 3.06 10.16 0.80 2.66 10.50 34.90 0.3400 1.13   8.24%   80.96% 30-Sep-2015 0.25 8.18 31.25 0.74 3.20% 42.00% 05-Nov-2015 0.30 9.81 37.50 0.88 2.67% 35.00%
31-Mar-2016 06-Aug-2015 30-Jun-2015 1 37,489 12,384 9,437 9,437 - 573,871 - % 25.17% 1.64% 1,275,270 2.94 9.76 0.74 2.46 0.00 0.00 0.4500 1.49   -15.47%   37.25% 30-Jun-2015 0.34 11.57 45.95 0.76 2.18% 0.00% 06-Aug-2015 0.34 11.57 45.95 0.76 2.18% 0.00%
31-Mar-2015 25-May-2015 31-Mar-2015 4 34,884 15,963 11,164 11,164 19,248 564,616 172.41% 32.00% 1.98% 1,283,218 2.72 9.08 0.87 2.91 1.50 5.01 0.4400 1.47   256.56%   -25.67% 31-Mar-2015 0.315 11.59 36.21 0.72 2.76% 4.76% 25-May-2015 0.335 12.32 38.51 0.76 2.60% 4.48%
31-Mar-2015 09-Feb-2015 31-Dec-2014 3 33,540 13,596 12,520 3,131 - 579,814 - % 37.33% 0.54% 1,159,629 2.89 8.73 0.27 0.82 0.00 0.00 0.5000 1.51   -44.53%   -42.90% 31-Dec-2014 0.305 10.55 112.96 0.61 0.89% 0.00% 09-Feb-2015 0.31 10.72 114.81 0.62 0.87% 0.00%
31-Mar-2015 19-Nov-2014 30-Sep-2014 2 32,351 7,494 5,645 5,645 - 620,950 - % 17.45% 0.91% 1,129,000 2.87 8.42 0.50 1.47 0.00 0.00 0.5500 1.62   -17.90%   -45.73% 30-Sep-2014 0.335 11.69 67.00 0.61 1.49% 0.00% 19-Nov-2014 0.33 11.52 66.00 0.60 1.52% 0.00%
31-Mar-2015 11-Aug-2014 30-Jun-2014 1 30,411 8,676 6,876 6,876 - 641,759 - % 22.61% 1.07% 1,145,999 2.65 7.92 0.60 1.79 0.00 0.00 0.5600 1.67   -54.22%   124.75% 30-Jun-2014 0.335 12.62 55.83 0.60 1.79% 0.00% 11-Aug-2014 0.345 13.00 57.50 0.62 1.74% 0.00%
31-Mar-2014 21-May-2014 31-Mar-2014 4 29,951 18,584 15,020 15,020 17,465 640,387 116.28% 50.15% 2.35% 1,164,341 2.57 7.80 1.29 3.91 1.50 4.55 0.5500 1.67   173.94%   152.66% 31-Mar-2014 0.28 10.88 21.71 0.51 4.61% 5.36% 21-May-2014 0.32 12.44 24.81 0.58 4.03% 4.69%
31-Mar-2014 20-Feb-2014 31-Dec-2013 3 29,676 16,467 14,872 5,483 - 629,961 - % 50.11% 0.87% 1,166,595 2.54 7.73 0.47 1.43 0.00 0.00 0.5400 1.64   -47.29%   -41.69% 31-Dec-2013 0.27 10.61 57.45 0.50 1.74% 0.00% 20-Feb-2014 0.28 11.01 59.57 0.52 1.68% 0.00%
31-Mar-2014 15-Nov-2013 30-Sep-2013 2 32,260 13,891 10,402 10,402 - 619,444 - % 32.24% 1.68% 1,168,764 2.76 8.40 0.89 2.71 0.00 0.00 0.5300 1.61   137.44%   -32.88% 30-Sep-2013 0.265 9.60 29.78 0.50 3.36% 0.00% 15-Nov-2013 0.275 9.96 30.90 0.52 3.24% 0.00%
31-Mar-2014 06-Aug-2013 30-Jun-2013 1 38,374 -34,717 -27,781 -27,781 - 632,984 - % -72.40% -4.39% 1,172,194 3.27 9.99 -2.37 -7.23 0.00 0.00 0.5400 1.65   2.59%   -308.28% 28-Jun-2013 0.27 8.25 -11.39 0.50 -8.78% 0.00% 06-Aug-2013 0.29 8.86 -12.24 0.54 -8.17% 0.00%
31-Mar-2013 27-May-2013 31-Mar-2013 4 33,687 -22,176 -28,520 -28,520 17,604 657,251 - % -84.66% -4.34% 1,173,662 2.87 8.77 -2.43 -7.42 1.50 4.58 0.5600 1.71   -403.31%   -273.15% 29-Mar-2013 0.27 9.41 -11.11 0.48 -9.00% 5.56% 27-May-2013 0.31 10.80 -12.76 0.55 -7.84% 4.84%
31-Mar-2013 21-Feb-2013 31-Dec-2012 3 40,632 18,293 9,403 9,403 - 681,717 - % 23.14% 1.38% 1,175,374 3.46 10.58 0.80 2.45 0.00 0.00 0.5800 1.77   -39.33%   -62.05% 31-Dec-2012 0.28 8.10 35.00 0.48 2.86% 0.00% 21-Feb-2013 0.245 7.09 30.63 0.42 3.27% 0.00%
31-Mar-2013 06-Nov-2012 30-Sep-2012 2 45,003 20,304 15,498 15,498 - 821,863 - % 34.44% 1.89% 1,174,090 3.83 11.72 1.32 4.03 0.00 0.00 0.7000 2.14   16.19%   -42.35% 28-Sep-2012 0.30 7.83 22.73 0.43 4.40% 0.00% 06-Nov-2012 0.31 8.09 23.48 0.44 4.26% 0.00%
31-Mar-2013 13-Aug-2012 30-Jun-2012 1 47,990 17,789 13,338 13,338 - 0 - % 27.79% - % 784,588 6.12 12.49 1.14 3.47 0.00 0.00 0.0000 0.00   -19.02%   -59.86% 29-Jun-2012 0.31 5.07 18.24 0.00 5.48% 0.00% 13-Aug-2012 0.32 5.23 18.82 0.00 5.31% 0.00%
31-Mar-2012 28-May-2012 31-Mar-2012 4 49,189 22,928 16,471 16,471 11,709 530,818 71.09% 33.49% 3.10% 780,616 6.30 12.81 2.11 4.29 1.50 3.05 0.6800 1.38   -33.52%   -0.80% 30-Mar-2012 0.32 5.08 15.17 0.47 6.59% 4.69% 28-May-2012 0.31 4.92 14.69 0.46 6.81% 4.84%
31-Mar-2012 14-Feb-2012 31-Dec-2011 3 61,110 30,645 24,776 24,776 - 515,841 - % 40.54% 4.80% 781,577 7.82 15.91 3.17 6.45 0.00 0.00 0.6600 1.34   -7.83%   -24.42% 30-Dec-2011 0.32 4.09 10.09 0.48 9.91% 0.00% 14-Feb-2012 0.34 4.35 10.73 0.52 9.32% 0.00%
31-Mar-2012 25-Nov-2011 30-Sep-2011 2 58,803 34,782 26,882 26,882 - 492,315 - % 45.72% 5.46% 781,453 7.52 15.31 3.44 7.00 0.00 0.00 0.6300 1.28   -19.09%   -13.94% 30-Sep-2011 0.29 3.85 8.43 0.46 11.86% 0.00% 25-Nov-2011 0.31 4.12 9.01 0.49 11.10% 0.00%
31-Mar-2012 09-Aug-2011 30-Jun-2011 1 60,757 39,810 33,226 33,226 - 476,890 - % 54.69% 6.97% 781,788 7.77 15.82 4.25 8.65 0.00 0.00 0.6100 1.24   100.12%   40.57% 30-Jun-2011 0.35 4.50 8.24 0.57 12.14% 0.00% 09-Aug-2011 0.30 3.86 7.06 0.49 14.17% 0.00%

PBT = Profit before Tax, NP = Net Profit, NP to SH = Net Profit Attributable to Shareholder, Div = Dividend, NP Margin = Net Profit Margin, ROE = Return on Equity, NOSH = Number of Shares, RPS = Revenue per Share, EPS = Earning Per Share, DPS = Dividend Per Share, NAPS = Net Asset Per Share, EOQ = End of Quarter, ANN = Announcement, P/RPS = Price/Revenue per Share, P/EPS = Price/Earning per Share, P/NAPS = Price/Net Asset per Share, EY = Earning Yield, DY = Dividend Yield.


NOSH is estimated based on the NP to SH and EPS. Div is an estimated figure based on the DPS and NOSH. Net Worth is an estimated figure based on the NAPS and NOSH.

Div Payout %, NP Margin, ROE, DY, QoQ Δ & YoY Δ figures in Percentage; RPS, EPS & DPS's figures in Cent; and NAPS's figures in Dollar.

All figures in '000 unless specified.


Analyze this stock with MQ Trader system
  7 people like this.
 
Foker Learner King, Aeoncr real PE is much lower at around 8. Don't do gung-ho yet.
19/02/2021 7:52 PM
Foker If you take out the impairments, and after the MFRS normalisation, Aeoncr real PE is probably around 7. So after the economy fully recovers Rcecap and Aeoncr will have similar PE. But everyone knows Aeoncr is the better of the two la
19/02/2021 7:53 PM
Foker Congrats to those who bought Rcecap when it was lower around RM 1.90. But using Aeoncr as a reference is not accurate
19/02/2021 7:54 PM
Learner King @Foker Using Aeoncr as a reference is kywoo not me, but i agreed with him laa. I dont know know how u calculate can get so called real PE is around 7 only, and i disagreed that u said Aeoncr is better than Rcecap.
19/02/2021 8:22 PM
Foker Hahaha, 5 years later we talk
19/02/2021 8:26 PM
Foker I will be there to laugh at u
19/02/2021 8:26 PM
Foker Observatory sifu will agree with me
19/02/2021 8:27 PM
Learner King @Foker Ok from the way u talk i know im wasting my time talking to you. Bye
19/02/2021 10:32 PM
kywoo I used to own some Nestle, Hong Leong Industry and Maybank shares. I have sold all my Nestle shares and made a small fortune from it. I have also sold my Maybank shares but made a loss from it. Maybank was really a big disappointment to me especially when they skipped dividend payment and reported lower profits. Now I am holding mainly 3 counters ie Allianz, RCECap and Hong Leong Industries. I am allocating about 30% of my resources to each of the counter as I happen to like them equally. As Warren Buffet said, holding 3 or 4 counters at any point of time is a better investment strategy than owning a lot of counters. If one has say 20 or 30 counters one would not be able to monitor their performance and hence lose control of one's concentration.
20/02/2021 12:41 AM
observatory Mr kywoo, thanks for sharing your investment decision. Not sure why my earlier comment disappeared. I deleted and reposted after correcting typos. I just found the reposted message missing.

*****

Mr. Kywoo! It’s nice to see you joining. You’re a very knowledgeable and focused investor. It’s a real pleasure to have you sharing your opinion and pointing out where I went wrong. If you don’t mind I'd like to take this opportunity to dwell into those points further details just to clear some doubts.

On point 1, yes I’ve overlooked it. It makes more sense now. Using Loanstreet flat to effective rate calculator, a 4.99% fixed rate over a 10-year tenure works out to have an effective rate of 8.67%.

4.99% fixed rate demands taking a takaful. Without takaful, it is 5.85%, equivalent to an effective rate of 9.99%.

The only fee mentioned is a stamp duty of 0.5% of total financing. The product disclosure sheet states that no collateral is required although a guarantor is needed.
https://www.bankrakyat.com.my/c/personal/financing_i/personal_financin...

So if the above calculation is correct, the effective rate is slightly under 10%. But not reaching 12% as in your experience. It’s still lower than 13% to 14% by RCE that I read somewhere. But that was quite a while back and RCE might have adjusted its rate down too as borrowing cost reduces.

Back to the question that prompts me to raise this example in the first place. Are Bank Rakyat, Bank Islam, BSN etc have the means and incentives to lower pricing and/or lending standards among public sector employees? How could RCE defend its profitability and market share, although it certainly helps that RCE has good management and pride itself for speedy loan approval.

On Point 3, you’ve misquoted me when you wrote “You have said that RCECap has enjoyed a PE of 6.5 in the past years and you are quite happy with that”.

What I wrote was “the past 5 year average PE was only 6.5X”. From the chart I saw, the forward PE over the last 5 years went as high as 9 to 10 times and as low as below 5. The average forward PE is 6.5X. (Median forward PE would tell a better story but I don’t have the data).

As I’ve commented back on Jan 1 and again today, I deemed current forward PE that is close to 9X as fair. Fair means I’m happy to hold, but not topping up or selling. If for no fundamental reason the share price is back to around 6.5X forward PE (which is RM0.33 * 6.5 = RM2.14), I personally will feel it’s undervalued and will top up.

So our difference is at 9X to 10X is undervalued for you and fair for me. But that is our personal opinions. The market price considers factors besides what retail value investors think, such as liquidity. Yes, the market could be “wrong” in the last 5 years. By 2026 we shall see in the new PE chart of the preceding 5 years whether the average PE gets “corrected”.

This brings me to a very practical question. Mr. Kywoo, not sure if you still remember that we’ve once discussed Allianz and HLIND, the two other companies that you’ve viewed as grossly undervalued. I also happen to like both companies, except HLIND management due to its cash hoarding.

Comparing these three companies as of today:
HLIND: share price RM8.15, TTM PE 17X (was 10X pre-Covid), ROE 9% (was 20% pre-Covid), dividend yield 5.2% (42 cents), net cash RM4.27 per share.
Allianz PA: share price RM13.90, TTM PE 9X (after dilution), PB 1.1X (after dilution), ROE 13%, dividend yield 5.0% (69.6 cents)
RCE Capital: share price RM2.78, TTM PE 9X, PB 1.4X, ROE 16%, dividend yield 4.3% (12 cents)

Assuming you have not held these stocks earlier, given a sum of capital, how many percent would you allocate into each of them?

This is a sincere question. I asked because eventually, stock investment is not carried out in isolation without relative comparison. Besides we both like these three companies. The allocation decision will reflect relative preferences.
20/02/2021 1:19 AM
observatory Mr kywoo, thanks for sharing. I see you are very confident with a concentrated portfolio as you’ve studied each one in depth. As I hold more stocks, I experience the challenge you mentioned.

Like you Nestle used to be my favorite holding, and I was reluctant to part even as valuation became very expensive. But I completely sold it in March to switch to many other bargains and never look back since.

Let me also put forward my 2 cents on how I would allocate between HLIND, Allianz and RCE if they are the only choices. If I start from a clean slate today, I will probably be 1/2 Allianz, 1/3 HLIND and 1/6 RCE.

Putting valuation aside, I have more confidence for Allianz to maintain good governance and capital discipline over the long term as this will be demanded by its parent. Today HLIND will be a recovery play for me. The net cash is also a potential positive wild card. As for RCE, even though I believe its valuation is only fair at the current level, my approach is usually to take a foothold when I come across a good company and observe it over time. Besides Buffett once advised buying good companies at fair prices.

Of course, this is just hypothetical. As I’ve started with them much earlier, I also own them in roughly equal proportion, besides a range of other stocks.
20/02/2021 1:38 AM
Xxxting any advice for buying in tp ?i wanna buy in this counter but it might to high right now
20/02/2021 3:08 AM
observatory Guys, check out The Edge today. Just as we debated the merits of RCE, their weekly edition published an article "RCE Capital shines in adversity".
20/02/2021 6:49 PM
donald770 Overall still room for going north. Recent issue esos is a. plus point.
22/02/2021 6:50 AM
Dragon88 good fundamental but price not moving much .....
12/04/2021 3:11 PM
Learner King its normal for this counter, it only will move when close to Quarter Report time
13/04/2021 5:18 PM
sheldon Too many ESOS diluting the earnings and stunting the share price.
20/04/2021 9:19 AM
up2_sky may i know QR out by when?
18/05/2021 9:53 AM
Goh123 Dividend 7cen
25/05/2021 5:45 PM
Goh123 Gogo rcecap
25/05/2021 5:46 PM
ooihk899 Q4 result good mah. That's why dividend increase loh.
25/05/2021 5:51 PM
Goh123 Rm3.00
25/05/2021 6:31 PM
Moolala solid
25/05/2021 6:47 PM
nextan Thursday 3.00 coming lioa
25/05/2021 7:40 PM
Moolala 7c in july + 7c in Nov = 14c dividend this year
26/05/2021 9:16 AM
nextan Very good company, longterm tp 5.00
26/05/2021 9:59 AM
kywoo There is hardly any counter in Bursa that can show a steady and consistent growth in net profits and dividend in the past 6 years despite economic uncertainty. Before 2015, RCECap had some rough times and the dividends then were miserable. However, after some restructuring and change in management strategy since 2015, the company never look back but continue to grow from strength to strength. Even very good companies like Nestle, Maybank, F & N and Hong Leong Industries etc suffered downturn in profitability in 2020 because of the covid pandemic. However, RCECap was hardly affected but continued to strengthen.

The average PE of Bursa's counters is around 15. Some counters are in fact trading at PE of over 50. I really cant understand why the company's PE has always been under 8 or 7. This fantastic company should be given a PE of around 10 at least. One would only give a PE of 7 or 8 to a company that is without any growth prospect in profit or dividend or perhaps to a company with high volatility or uncertainty in profitability. This is certainly not the case with this company.

The market can be irrational in the short term but will be rational in the long run. I am sure the market will award a higher PE to RCECap in the medium term. Perhaps in the PE region of 11 to 14.
26/05/2021 11:50 AM
Moolala I second that
26/05/2021 12:19 PM
nextan Sir if the PE 15 how much is the tp?
26/05/2021 2:26 PM
Moolala you can calculate yourself, use trailing EPS x PE
26/05/2021 5:13 PM
nextan Thanks bro...
26/05/2021 7:09 PM
Goh123 3.70?
26/05/2021 7:53 PM
zigua 290!
02/06/2021 5:11 PM
Moolala major shareholders buying shares, they know business is going to be good and share price is undervalued
03/06/2021 10:32 PM
kakashi1888 @nextan @Goh123.... if PE 15 then the share price would be around RM5+-. Hope this help you. Cheers
04/06/2021 12:59 AM
Goh123 Major shareholder buy back. ... something want happen?
08/06/2021 6:35 PM
Sureinvest I think so. I think they are going to privatize this cash cow.
08/06/2021 6:37 PM
ming Yea.. but price now alrdy exceed NTA. Even privatise dont think will offer good price
08/06/2021 6:42 PM
kelvin17 there is basically no asset why should the boss wanted to privatise , he can set up another similar co at little cost instead of paying us rm 3
10/06/2021 5:01 AM
Bgt 9963 Hoot9e...!
10/06/2021 8:30 AM
stevenlowcb esos for staffs priced at RM 2.17 tomorrow list
10/06/2021 10:46 AM
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