[%wQvo%] 
Research by PIB
Neutral – TP of MYR 3.18

“Earnings Within Expectations” 

RCE’s 4QFY24 net profit fell by 16.6% YoY to RM29.1m, mainly dragged by an increase in allowance for impairment loss, higher operating expenses from facility fee relating to new funding secured and higher sales and marketing expenses. Full-year FY24 net profit of RM138.7m came in within our and consensus estimates, accounting for 97% and 96% respectively. Nevertheless, we tweak our earnings forecast for FY25-26Fdownwards by c.3% to account for the higher credit cost. We raise our dividend payout assumption to c.70% on higher financing receivables growth underpinned by the increase in civil servants’ salaries. As such our DDM-derived TP is adjusted to RM3.18, implying a P/BV of 2.7x. Given the recent run in share price (+16.4%) since our initiation and the limited upside potential, we downgrade our call on RCE from Trading Buy to Neutral.

Analyst(s):
Wong Ling Ling
w [%DqoC%]

$KLSE-RCECAP 
Research by PIB
Neutral – TP of MYR 3.18

“Earnings Within Expectations” 

RCE’s 4QFY24 net profit fell by 16.6% YoY to RM29.1m, mainly dragged by an increase in allowance for impairment loss, higher operating expenses from facility fee relating to new funding secured and higher sales and marketing expenses. Full-year FY24 net profit of RM138.7m came in within our and consensus estimates, accounting for 97% and 96% respectively. Nevertheless, we tweak our earnings forecast for FY25-26Fdownwards by c.3% to account for the higher credit cost. We raise our dividend payout assumption to c.70% on higher financing receivables growth underpinned by the increase in civil servants’ salaries. As such our DDM-derived TP is adjusted to RM3.18, implying a P/BV of 2.7x. Given the recent run in share price (+16.4%) since our initiation and the limited upside potential, we downgrade our call on RCE from Trading Buy to Neutral.

Analyst(s):
Wong Ling Ling
w ong.lingling@publicinvestbank.com.my