[%ZMaL%] RCE Capital 
Research by RHB
NOT RATED ; Fair value (Return)  MYR2   

"Measured Growth, Undemanding Valuations"
 Fair value of MYR2 based on a GGM-derived P/BV of 1.1x against FY20F (Mar) ROE of 16%. RCE Capital, a provider of general financing services for civil servants, is forecast to achieve sustained earnings growth of 6% pa in FY20F-21F on measured loan growth – this is as management focuses on asset quality. Current valuation multiples of 0.99x P/BV (March) and a mere 5.4x FY20F P/E are undemanding, while its yield of 6% is attractive. 

Fiona Leong
+603 9280 8886
[%qwRA%] 

$KLSE-RCECAP RCE Capital 
Research by RHB
NOT RATED ; Fair value (Return)  MYR2   

"Measured Growth, Undemanding Valuations"
 Fair value of MYR2 based on a GGM-derived P/BV of 1.1x against FY20F (Mar) ROE of 16%. RCE Capital, a provider of general financing services for civil servants, is forecast to achieve sustained earnings growth of 6% pa in FY20F-21F on measured loan growth – this is as management focuses on asset quality. Current valuation multiples of 0.99x P/BV (March) and a mere 5.4x FY20F P/E are undemanding, while its yield of 6% is attractive. 

Fiona Leong
+603 9280 8886
fiona.leong@rhbgroup.com 