[%NdrQ%]
Research by Maybank
Hold (Prior: Buy) – TP RM3.02

“Break for tea before Budget 2025"

With <10% upside potential currently, we downgrade RCE to HOLD from BUY with an unchanged MYR3.02 TP on 2.5x end-CY25E BVPS. We caution that the positive impact of the civil servants’ salaries hike will not be felt until 1 Dec 2024. That said, we flag the possibility of upside to financing receivables growth if civil servants who receive disproportionately higher salary hikes pivot to RCE. More details will be revealed during Budget 2025. Until then, investors will receive >5.0% dividend yield.

Analyst:
Yin Shao Yang
[%EpPp%]

$KLSE-RCECAP
Research by Maybank
Hold (Prior: Buy) – TP RM3.02

“Break for tea before Budget 2025"

With <10% upside potential currently, we downgrade RCE to HOLD from BUY with an unchanged MYR3.02 TP on 2.5x end-CY25E BVPS. We caution that the positive impact of the civil servants’ salaries hike will not be felt until 1 Dec 2024. That said, we flag the possibility of upside to financing receivables growth if civil servants who receive disproportionately higher salary hikes pivot to RCE. More details will be revealed during Budget 2025. Until then, investors will receive >5.0% dividend yield.

Analyst:
Yin Shao Yang
samuel.y@maybank-ib.com