Latest news with #RCECapital
The Star
3 days ago
- Business
- The Star
RCE Capital likely to post stronger receivables
PETALING JAYA: RCE Capital Bhd 's impairment losses on receivables are expected to normalise following the elevated provisioning recognised in its fourth quarter ending March 31, 2026 (4Q25). The recent civil servant salary adjustments are also expected to enhance financial stability within RCE Capital's main borrower base, it said. This will potentially lower the risk of early retirement or migration to the private sector by improving disposable income levels, it noted. RHB Research said the company is still maintaining a cautious stance on disbursements amid the still-elevated and plateauing cases of bankruptcies and early retirements. 'While most of the bad news looks priced in, an unexciting core earnings profile will likely cap the stock's potential upside. 'Management reiterated the need to remain cautious with disbursements amidst a tough operating environment, where cases of bankruptcies and early retirements are still at elevated levels. 'Financing receivables growth was a soft 1% year-on-year but flat quarter-on-quarter,' RHB Research said. However, the company could benefit slightly from the recent overnight policy rate cut. This will then have a slight positive impact on interest or profit expenses on RCE Capital's revolving credits, which form some 30% of the group's financing liabilities base, RHB Research said. 'We estimate the interest/profit expense savings to amount to circa RM2mil per year, which is not too significant. 'More significantly, RCE Capital is planning a new sukuk tranche issuance to capitalise on the favourable bond yield movements of late. 'While the tranche amount and profit rate are undisclosed at this juncture, we think this could allow the group to more significantly lower its overall cost of funds over a longer period,' it said. RHB Research, which had retained its 'neutral' call on RCE Capital, decreased its financial year 2026 (FY26) to FY28 earnings estimates by 15%, 12%, and 10%, respectively, after factoring in softer receivables growth and higher credit cost assumptions. It also reduced its target price to RM1.15 from RM1.25, noting the share price has retreated some 16% over the past three months. But at these reduced share price levels, it pointed out most of the bad news has likely already been priced in. For the 1Q25, RCE Capital's net profit dipped to RM25.99mil from RM30.32mil in the previous corresponding period, while revenue stood at RM79.79mil against RM79.12mil a year earlier.
The Star
5 days ago
- Business
- The Star
RCE Capital posts solid 1Q26 performance
PETALING JAYA: RCE Capital Bhd believes that its commitment to maintaining asset quality by actively monitoring its portfolio and credit exposure is key to ensuring long-term sustainability of its business. To strengthen competitive positioning, the group said it would continue to implement omnichannel marketing initiatives for enhanced customer experience and market reach expansion. Releasing its results for the first quarter ended June 30 (1Q26) for the financial year ending March 2026 (FY26), RCE Capital saw net profit slide by 14.3% year-on-year to RM26mil, despite the marginal growth in revenue to RM79.8mil. The group said the slightly better revenue was due to higher fee income from increased disbursements, before adding that net profit declined after accounting for higher allowances for impairment loss on receivables. Compared to the previous quarter (4Q25), however, revenue fell by 14% from RM92.8mil, but net profit actually surged by 56.2% from RM16.6mil. RCE Capital attributed the lower quarterly revenue to lower fees and early settlement profit income, while crediting the better 1Q26 profit primarily to the absence of impairment of goodwill on consolidation, and lower allowances for impairment loss on receivables.
Yahoo
23-06-2025
- Business
- Yahoo
Those who invested in RCE Capital Berhad (KLSE:RCECAP) five years ago are up 251%
It hasn't been the best quarter for RCE Capital Berhad (KLSE:RCECAP) shareholders, since the share price has fallen 11% in that time. But that scarcely detracts from the really solid long term returns generated by the company over five years. In fact, the share price is 140% higher today. We think it's more important to dwell on the long term returns than the short term returns. The more important question is whether the stock is too cheap or too expensive today. While the long term returns are impressive, we do have some sympathy for those who bought more recently, given the 15% drop, in the last year. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. RCE Capital Berhad's earnings per share are down 3.0% per year, despite strong share price performance over five years. So it's hard to argue that the earnings per share are the best metric to judge the company, as it may not be optimized for profits at this point. Therefore, it's worth taking a look at other metrics to try to understand the share price movements. In fact, the dividend has increased over time, which is a positive. Maybe dividend investors have helped support the share price. The revenue growth of about 3.5% per year might also encourage buyers. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). Take a more thorough look at RCE Capital Berhad's financial health with this free report on its balance sheet. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for RCE Capital Berhad the TSR over the last 5 years was 251%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! We regret to report that RCE Capital Berhad shareholders are down 11% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 7.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 29% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for RCE Capital Berhad that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
Those who invested in RCE Capital Berhad (KLSE:RCECAP) five years ago are up 251%
It hasn't been the best quarter for RCE Capital Berhad (KLSE:RCECAP) shareholders, since the share price has fallen 11% in that time. But that scarcely detracts from the really solid long term returns generated by the company over five years. In fact, the share price is 140% higher today. We think it's more important to dwell on the long term returns than the short term returns. The more important question is whether the stock is too cheap or too expensive today. While the long term returns are impressive, we do have some sympathy for those who bought more recently, given the 15% drop, in the last year. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. RCE Capital Berhad's earnings per share are down 3.0% per year, despite strong share price performance over five years. So it's hard to argue that the earnings per share are the best metric to judge the company, as it may not be optimized for profits at this point. Therefore, it's worth taking a look at other metrics to try to understand the share price movements. In fact, the dividend has increased over time, which is a positive. Maybe dividend investors have helped support the share price. The revenue growth of about 3.5% per year might also encourage buyers. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). Take a more thorough look at RCE Capital Berhad's financial health with this free report on its balance sheet. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for RCE Capital Berhad the TSR over the last 5 years was 251%, which is better than the share price return mentioned above. This is largely a result of its dividend payments! We regret to report that RCE Capital Berhad shareholders are down 11% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 7.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 29% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for RCE Capital Berhad that you should be aware of before investing here. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
