[%yZvR%]
Research by Public
Neutral – TP RM3.18

“Affected by Increase in Provisions"

RCE’s 1QFY25 net profit declined by 17.8% YoY to RM30.3m, dragged by lower fee income and higher allowance for impairment loss on receivables. Results came in broadly within our and consensus estimates, accounting for 21% and 20% of our full-year forecast respectively. Nevertheless, we adjust our earnings forecast for FY25-27F by an average of 2% due to book-keeping changes. We believe that RCE’s financing receivables growth will likely accelerate in 2HFY25, driven by the adjustment in civil servants’ salaries that will be implemented later this year, given the strong correlation with government emoluments. We maintain our Neutral call and TP of RM3.18 on RCE.

Analyst:
Wong Ling Ling
[%IhmX%]

$KLSE-RCECAP
Research by Public
Neutral – TP RM3.18

“Affected by Increase in Provisions"

RCE’s 1QFY25 net profit declined by 17.8% YoY to RM30.3m, dragged by lower fee income and higher allowance for impairment loss on receivables. Results came in broadly within our and consensus estimates, accounting for 21% and 20% of our full-year forecast respectively. Nevertheless, we adjust our earnings forecast for FY25-27F by an average of 2% due to book-keeping changes. We believe that RCE’s financing receivables growth will likely accelerate in 2HFY25, driven by the adjustment in civil servants’ salaries that will be implemented later this year, given the strong correlation with government emoluments. We maintain our Neutral call and TP of RM3.18 on RCE.

Analyst:
Wong Ling Ling
wong.lingling@publicinvestbank.com.my