[%TYqs%]
Research by Maybank
Hold – TP RM3.00

“All eyes on civil service salary hike announcement today"

Like 4QFY24, 1QFY25 results were lacklustre. That said, we believe that the worst is over. The government will announce a major civil service salary hike effective 1 Dec 2024 today. With history as our guide, this ought to be positive for financing growth. Our earnings estimates and MYR3.00 TP based on 2.5x end-CY25E P/BV are maintained for now as we wait for the full details of this announcement. As things stand, RCE offers decent dividend yields of >5% p.a.

Analyst:
Yin Shao Yang
[%OFWP%]

$KLSE-RCECAP
Research by Maybank
Hold – TP RM3.00

“All eyes on civil service salary hike announcement today"

Like 4QFY24, 1QFY25 results were lacklustre. That said, we believe that the worst is over. The government will announce a major civil service salary hike effective 1 Dec 2024 today. With history as our guide, this ought to be positive for financing growth. Our earnings estimates and MYR3.00 TP based on 2.5x end-CY25E P/BV are maintained for now as we wait for the full details of this announcement. As things stand, RCE offers decent dividend yields of >5% p.a.

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