Posted by Sohai Trader > 2023-07-08 23:19 | Report Abuse

RCECAP distributes dividend of 30 cents in FY 2023, this translates to dividend payout ratio of 63% (from The Edge)

As RCECAP announced a new dividend payout ratio of 60-80% for FY 2024 onwards, are we expecting that the dividend payout amount will be at around 30 cents or more for FY 2024 onwards, assuming the net profits remain the same and increasing yoy? If this is the case, the dividend yield for this Gem at the current price level is : 0.3/ 2.32 = 12.92%, which sounds awesome at the moment.

Posted by Learner King > 2023-07-09 00:08 | Report Abuse

FY 2023 dividend 30 cents is including 18 cents special dividend....

Posted by Learner King > 2023-07-09 00:31 | Report Abuse

So glad i'm never believe in so called sifu observatory analysis and i been enjoying the capital gain plus increase dividends every year and the share split in 2022! Keep up the good work Rcecap Management and run the company well ! Thank you rcecap😄

Posted by ooihk899 > 2023-07-09 09:44 | Report Abuse

What's wrong with you? Did observatory say he is a sifu?
Did he give a sell call????? Below was his comment.

Posted by observatory > 2023-02-15 19:52 | Report Abuse

The top line is helped by non-interest income of almost RM19m, which is a record high. NII now constitutes 28.5% of total income. As mentioned in the management review, it's primarily driven by "higher early settlement income arising from increased refinancing activities".
The question is, could refinancing activities be near its peak now?

More reassuringly, financing receivables have been growing above 6% YoY in the last and current quarters, reversing the slow down that started in 2020. As long as management remains prudent with its lending, this will be a more reliable and growing source of income in the future.

Posted by Learner King > 2023-07-09 12:06 | Report Abuse

Haha ooihk899 seem like you are the big fan of observatory. Ok lo u don't like i call him sifu than i just call him observatory ok? Don't angry ok? Haha

Oh btw did i got say he give sell call? No right? Haha

Lastly i'm refering to his analysis all the way back to 2021, not the recently one.

Are you happy with my explanation? If still not happy i also bobian. Haha

Posted by Moolala > 2023-07-09 14:46 | Report Abuse

what's wrong with observatory's analysis? I think he touched on some good points.

Posted by ooihk899 > 2023-07-09 15:16 | Report Abuse

I'm not a big fan of anyone. I just don't like TKLSS ppl.
Anyway, my money, my decision. Why wan to listen to others.
Only (So-hai) ppl do that. Opps, no wonder your name is (So-hai)

Posted by Sohai Trader > 2023-07-09 18:14 | Report Abuse

Thanks for the correction, my bad, with that special dividend, the total dividend payout of 30 cents in FY 23 represents a dividend payout ratio of 158% (as per RCECAP latest QR Note 8: Total dividend declared in respect of the financial year ended 31 March 2023 is 30.00 sen. This translates to a dividend payout ratio of 158.4%.)

With the anticipated dividend payout of 14 cents in FY 24 (Maybank report), the current dividend yield at current price is at 0.14 / 2.32 = 6.034%, still a decent yield but yeah, the price movement of this stocks are quite elevated at the moment...

Posted by ooihk899 > 2023-08-14 17:16 | Report Abuse

Excellent result, FY 2023 16 sen div in the bag. 😁🤑🤑🤑

Posted by observatory > 2023-08-14 21:23 | Report Abuse

Another good quarter. For the last 3 years, net interest income fluctuated at around RM43m - RM52m per quarter. It is RM46m in the latest quarter. The good result in recent quarter is contributed by rising non-interest income.

Impairment on financings has been coming down to RM4.7m (versus RM8.2m last quarter, and RM8.2m a year ago). Credit cost is 93 basis points. This is good. Hopefully this is a new trend after recording on average about 150 basis points per quarter throughout FY23.

Gross financing continues to grow modestly to RM2,045m (+1.2% QoQ, +7.4% YoY). This is in line with management's guidance to analysts earlier that the company financing growth will track the banking industry. It's better to grow conservatively through quality financing.

One bright spot with RCE is the Board is willing to return excess capital to shareholders. Not only through increased dividends, where payout ratio has increased from 30% a few years ago to current 60%, but also the 18 sen special dividends in late 2022.

As a result, the company has reversed the ROE decline seen earlier. Despite its growing business size, ROE has actually risen back to 17% - 18% range. This is rare and impressive act. Such attitude of taking care of shareholders is probably one reason that the market has re-rated its share.

Posted by Moolala > 2023-08-14 22:17 | Report Abuse

Hi Observatory, thanks for the qr summary. Quite rare to find a gem like this which keeps announcing record high revenue and profits

Posted by Tibbers > 2023-08-16 11:38 | Report Abuse

growth stock + dividend. Rm2.50 coming.

Posted by jeffrey1166 > 2023-08-16 17:57 | Report Abuse

tp i set is rm2.8 will be soon

Posted by ooihk899 > 2023-09-12 12:34 | Report Abuse

Grats to all, new high again, broke thru RM2.5 already.
Hope bumper dividend declare in Nov.

Posted by jeffrey1166 > 2023-09-13 00:38 | Report Abuse

ya oi around 0.15-0.17 div

Posted by Tibbers > 2023-09-13 09:23 | Report Abuse

Hehehe nice. hit my tp 2.50, but since its a breakout, probably next tp 2.80 to 3.00

Posted by jeffrey1166 > 2023-09-13 21:43 | Report Abuse

ya 2.8 above surely hit on q4

Posted by ooihk899 > 2023-11-08 11:14 | Report Abuse

New high today😁💪

Posted by jeffrey1166 > 2023-11-09 23:34 | Report Abuse

next week will hit mt tp

Posted by Tibbers > 2023-11-15 10:53 | Report Abuse

Niceeee growth + dividend counter

Posted by llwj1985 > 2023-11-21 11:17 | Report Abuse

moving up nicely, are we expecting another great qr and a bonus dividend again? 😁

Posted by Moolala > 2023-11-21 11:22 | Report Abuse

🚀🚀

Posted by Tibbers > 2023-11-21 11:59 | Report Abuse

hehehehehe

Posted by kimpeng > 2023-11-22 18:24 | Report Abuse

great qr hehe

Posted by ooihk899 > 2023-11-22 18:53 | Report Abuse

😁🤑🤑, CNY come early, will receive big Ang Pou on 28th Dec

Posted by Moolala > 2023-11-22 19:19 | Report Abuse

Insane!

Posted by observatory > 2023-11-22 23:14 | Report Abuse

From FY18 (Apr 2017) to 2QFY24, RCE eps on adjusted basis has grown at a compound annual growth rate of 9.4%.
During the same period, dividend has grown at CAGR of 32%! This is achieved as payout ratio increases from 27% in FY2018 to 76% in the last 4 quarters. Last year there was also a special dividend.

In short, the impressive dividend has increased on the back of strong earning growth, compounded by trippling in payout ratio. Moving forward, however, payout ratio is likely to plateau as it's already at 76%.

As for earning growth, there are two sources:
1) Percentage of Non-interest income (NII) as total operating income has increased from a low point of 16% to 33% now, helped by higher interest earned and customer refinancing. In other words, NII has increased a very fast pace in the last few years. It has to slow at some point. But I haven't seen it slowing.
2) The last four quarters have seen financing receivables growing at 6% to 8%, much higher than the 2% to 3% growth in FY21 to FY22. This is the fundamental source of growth. The growth rate is higher than banking sector, exceeding the management promise.

On asset quality. Over the last 3 quarters, GIL ratio stays below 4%. Credit cost on last 4Q basis remains at acceptable 133 basis points. So far so good.

I will continue to hold and keep an eye on performance. But I won't buy.

Posted by ooihk899 > 2023-11-23 07:59 | Report Abuse

observatory, thanks for the sharing.😍

Posted by TalkNumberOne > 2023-11-23 08:39 | Report Abuse

Observatory, superb sharing! Love it. Clear message and your thought behind it. Please share more 😍😍

Posted by ooihk899 > 2023-11-23 10:51 | Report Abuse

I will hold until 2025 since the government will revise the salary scale
of government servant end 2024. More ppl will be eligible to become
RCE customer.

Posted by ooihk899 > 2023-11-23 10:53 | Report Abuse

Hopefully, there will be an increase in dividend again😀

Posted by Cakes Moon > 2023-11-29 09:09 | Report Abuse

8 cents dividend equivalent to 3% returns while revenue & net profit broke new high to 87.7m & 38.2m, respectively!!!
Profit margin consistently staying high at 43%, I see great opportunity for RCECAP share price to continuously growing!!!

Posted by jeffrey1166 > 2023-11-29 23:54 | Report Abuse

i keep buying

Posted by ooihk899 > 2023-12-04 11:51 | Report Abuse

Grats to you, jeff, new high. Most probably final div will be 9 sen.

Posted by wallstreetrookieNEW > 2023-12-07 15:51 | Report Abuse

pang72 earned a lot from this counter

Posted by wallstreetrookieNEW > 2023-12-07 15:51 | Report Abuse

Next stop RM3.00

Posted by alexnada > 2023-12-07 17:05 | Report Abuse

What happened? jump so high...

Posted by moven00 > 2023-12-07 20:07 | Report Abuse

@ alexnada

Nothing happen, just enjoy the show.

Posted by alexnada > 2023-12-08 09:51 | Report Abuse

All right... hahahaha

Posted by Chellons > 2023-12-08 16:57 | Report Abuse

Wonderful to look at the chart

Posted by Moolala > 2023-12-08 18:50 | Report Abuse

friggin awesome move in a market like this

Posted by Cakes Moon > 2023-12-09 09:31 | Report Abuse

Growth & dividend stocks!!!

Posted by ooihk899 > 2023-12-09 14:25 | Report Abuse

Hopefully can break RM 3 and stay above 3. Then we can attend
next year AGM to ask for split 1:1, hahaha😁😁😁.

Posted by jeffrey1166 > 2023-12-09 16:59 | Report Abuse

ya surely can up above rm3

Posted by moven00 > 2023-12-10 18:52 | Report Abuse

RM3 boleh. 👍🏻

Posted by ooihk899 > 2023-12-11 10:25 | Report Abuse

Broke RM3!!!!! 💰💰💰🤑🤑🤑 Grats to all.

Posted by ooihk899 > 2023-12-11 10:59 | Report Abuse

Haiz, too fast to celebrate, should have wait till closing.😅

Posted by jeffrey1166 > 2023-12-11 20:12 | Report Abuse

i will portion on 3.4 then wait bonus issues in again

Posted by jeffrey1166 > 2023-12-11 20:12 | Report Abuse

sell

Posted by sheldon > 2023-12-21 08:05 | Report Abuse

Ive sold all my stake cum-dividend and have registered a handsome gain although on hindsight I shouldn't. I'm fairly convinced that it's overvalued compared to other financial institutions.