Heng0202's comment slightly overstretched the imagination. RCECAP outstanding performance from personal loan financing segment amounts to about 1% of the 1.3 million civil servants. Most take loans for car purchase, motorcycle, housing & living essentials. To borrow solely for 'playing' or 'gambling' in Bursa is definitely off the mark. No brainers' investment in ASB, EPF would be enough, no need for risks in Bursa.
KUALA LUMPUR: Maybank Investment Bank Research has raised its FY17-FY19 earnings for RCE Capital Bhd by 15-21% and also projects higher return on equity (ROEs) of 15-16% over this period.
The research house said on Thursday that the new projections were following consistently strong earnings in 3QFY3/17, aided by still robust net loans growth of about 14% on-year and net interest margin (NIM) expansion, mitigated in part by higher credit costs.
It maintained its Buy call on the counter with a higher target price of RM1.95 from RM1.60.
Rcecap is expected to post better profit in the absent of one-off additional expenses
" RM 4.6 million costs were incurred for securing additional facilities,which has resulted in higher other expenses of RM18.6 million in the current quarter under review."
As stated in the AR 2016, the additional facilities secured by 31Mar2016 consisted of Term Loan 5 value RM 300 million and Revolving credits 5 & 6 value RM 200 million. I don't think they will apply additional facilities in big amount during FY 31 Mar17 since the funds raised in 2016 is sufficient to offset its loan growth this year.
Long-term in the context of civil servants opting for longer repayment plans. For example, 8 years repayment plan. RCECAP stands to gain from consistently recurrent higher interest income from longer repayment period.
An opinion poll (contd) Do you think RCECAP will continue to OUTPERFORM? Why?
READ THIS NEWSPAPER REPORT - IS THE OBVIOUS Obvious Enough?
Cuepacs: Up to 100,000 govt staff may soon become bankrupt
The Star Malaysia KUALA LUMPUR: Many civil servants are taking up more loans to cope with the rising cost of living, resulting in them being declared bankrupt.
Cuepacs president Datuk Azih Muda said civil servants from the middle and lower ranks were resorting to such measures, thinking that it would offset their expenditure owing to the rising inflation rate.
“How wrong they are. Our rough estimate shows up to 100,000 civil servants may soon be declared bankrupt. As of now, 3,000 of them are already bankrupt.
“This situation may worsen as many more are also taking up loans from loan sharks,” he told reporters during a launching of a Workers’ Seminar, in conjunction with Labour Day, yesterday. Azih said they could lose their jobs or get suspended, resulting in more domestic problems like divorce and broken families.
“Just imagine if half of the 100,000 civil servants are married with children,” he said. Azih said there were now at least 20 financial institutions, including cooperatives that had been appointed to provide loans to civil servants by way of monthly deductions.
He pointed out that these entities do not cross check the background of each applicant. Citing an example, Azih said a civil servant, who is only eligible to apply for a RM50,000 loan, could go to four banks to apply and get a total sum of RM200,000.
“Some even submit fake salary slips to ensure that they are successful and this is when the problem starts.
“The Government should come up with a system to monitor this alarming situation,” he said. Azih said given the present economic situation, government servants should tighten their belts rather than find a short and an easy way out.
“This is akin to digging a hole to fill another and in the end, there will be too many holes.” Cuepacs has 1.2 million members and 106 affiliated unions.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
heng0202
983 posts
Posted by heng0202 > 2017-04-09 20:45 | Report Abuse
local fund will come in. trust me. the show start. tp 2.2 .