There is another article about RCE on The Edge Saturday. There are a few key points: 1. Interviewed analysts believed loan loss provisioning due to many civil servants leaving their jobs may have peaked. In fact, provision for the latest quarter has come down. 2. Maybank expects RCE earnings to normalize because 2Q earnings were boosted by early settlement income as customers wanting to lock in lower rates before rates move higher. 3. RHB pointed out that given most of RCE’s funding is on a fixed rate basis, the impact of higher funding rate affects only new sukuk issuance.
I believe the management anticipate a better future earning, that's why they declare a special div of 18 sen. Even the interim div also being increased to 5 sen.
RCE has a dividend policy of 20% to 40% payout. Despite the increasing payout ratio in the last few years, and in fact payout exceeded 40% in FY22, it has accumulated too much equity capital given the business has been growing quite slowly. Take for example, over a period of 4.5 years from end Mar 2018 to end Sep 2022, shareholders’ equity has increased 76% from RM519m to RM912m. However total financing receivables only increased 21% from RM1.5b+ to RM1.8b+. This is probably to motivation to return underutilized shareholder’s equity. Maybe this is the request from its major shareholder. Still the management deserves praise for being responsible to shareholders.
I don't think it's possible but I believe their dividend will be at least 10sen and above for FY2023 n beyond. Even at current price, if the dividend is 10 sen, yield will be 5.9%, which I consider is excellent if you compare to other divy stock in KLSE
When the profit continues to grow sure can back to RM2 lo, can even go above 3 wor. Why you ask? you stuck at RM 2 ar? Actually, only god knows the answer. Waakakaka.....
This stock is for value investor and dividend earning. I can feel the investors here are mostly satisfying RCE performance and willing to invest in longer term. Good!
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....
sheldon
1,432 posts
Posted by sheldon > 2022-04-26 09:48 | Report Abuse
Anyone has any idea as to the amount of ESOS outstanding.