$RCECAP / 9296 (RCE CAPITAL BERHAD)
Research by Maybank
Hold (Prior: Hold) – TP of MYR2.44
“Will wait for this storm to pass”
We understand that RCE’s operating environment has weakened recently. Financing receivables growth is likely to ease as the credit quality of new applicants has much to be desired. Credit costs also remain high due to more resignations and early retirements. Thus, we trim our EPS estimates by 3-5%, and our TP to MYR2.44 from MYR2.59 as we employ a lower endCY24E target P/BV of 2.1x (2.2x previously). With share price having reflected much of the negatives, we upgrade RCE to HOLD from SELL.
Analyst(s):
Yin Shao Yang
samuel.y@maybank-ib.com