So glad i'm never believe in so called sifu observatory analysis and i been enjoying the capital gain plus increase dividends every year and the share split in 2022! Keep up the good work Rcecap Management and run the company well ! Thank you rcecap😄
@Foker Using Aeoncr as a reference is kywoo not me, but i agreed with him laa. I dont know know how u calculate can get so called real PE is around 7 only, and i disagreed that u said Aeoncr is better than Rcecap.
@kywoo Thank for pointed it out to Mr. Observatory, especially point number 3! Haha your english is better than i.
kywoo Mr. Observatory. As a shareholder myself, I would like to thank you for putting so much effort in doing research on the company. I would say that for most part, you are right in your research facts. However you may be wrong in 3 arears which I would like to highlight to all the readers.
(1) There is no way Bank Raayat or any bank can give out a clean loan of up to 10 years at an effective rate of 4.99% per annum as you have pointed out. At that rate, the bank will certainly lose money as cost of fund is volatile over a 10 years period. Don't forget that the actual cost of fund plus overhead cost and provisions will be much higher than 4.99%. Just like Hire Purchase financing, there is an add on rate and an effective rate depending on the period of financing. Effective interest of 12% p.a. over 5 years or more is very reasonable. Nowadays it is not easy to get a clean loan anywhere.
(2) You wrongly assume that when a borrower settle a loan with RCECap they will go to another bank for refinancing. In fact almost all of them will just get a bigger loan after they settle the smaller outstanding balance with the company. This is where the company makes some extra money from the early repayment. A very good deal for both parties.
(3) You have said that RCECap has enjoyed a PE of 6.5 in the past years and you are quite happy with that. I totally disagree with you. A fantastic company like RCECap should deserve a PE of no less than 10. The average PE of all counters in Bursa is 15. Some counters are rated with PEs of 30 or 50 or even 100. Even Aeon Credit can command a PE ranging from 12 to 15. In all honesty it would be sheer madness to rate Aeon at 15 and RCECap at 6.5 The market can be irrational in the short run but will be rational in the long run. RCECap is going up in price lately because the market is revaluating it according its fundamentals and future performance. As far as I am concerned I will keep on accumulating this counter ( subject to cash availability ) as long as the PE is below 9 or 10 and I am sure I am on the right track to make good money. 19/02/2021 6:17 PM
@observatory thanks for your compliment about my english but i still think my english is very bad haha. Yes u can say it Ambank and Rcecap got connection because both under same father Amcorp group. But both is doing their own business, rcecap is not helping ambank, ambank is not helping rcecap to promoted their bussiness either. I'm trying very hard to explain to you using my bad english.
Yes dividend Part myself i confidant will be at least 7 cent twice this year if nothing go wrong and business still going well, but i cannot guranteed it because how also im not the management of rcecap hence i didnt know if they will suddenly change it or not. But they did have a dividend policy which will take out 40% from their profit to give to shareholders, so 7 cent twice this year should be no problem, if they suddenly decided to give out 8 cent or more or even special dividend i will be more and more happy :)
@observatory OK for how to you valued the forward PE is up to you because everyone got their own opinion but i just want to showed that i disagreed with how you value it but is ok since you explain to me why u value it that way.
And please dont compare with cimb , mpi or airasia bla bla bla, if u want to say it that way most of the stocks in Bursa now is higher from it low since last year mco ok!Some even until 1000% 0r more growth. in share price. Now we are talking about this company fundamental.
And for the question that you ask I just want to WOW, are you sure u really got study this company and read their every quarter financial report at least from 2016 year start?
For the first question you ask said that "since earlier years RCE has relied on Yayasan Dewan Perniagaan Melayu Perlis and Yayasan Ihsan Raykay to reach end customers", are you sure they only relied on this 2 reunion only? Please go and do more study and the information can easily been found if u google it lol.
For this question:More importantly, how does RCE manage the credit risk if these intermediaries were to default? ", please go and read tru their each Quarter Report please, they been explaining in every quarter and continue the same strategy to how to reduce the risk and i like their strategy is easy to understand.
For this question" The other question concerns how to avoid a repeat of the difficult period in 2013-14. Stiff competitions then from Bank Rakyat and the like resulted in lax credit standard and subsequent rise in impairment. It took BNM’s intervention to limit loan tenure to not more than 10 years to prevent the race to the bottom. RCE management has turned conservative after that lesson. But what stops other banks from encroaching into RCE market share as a source of their growth? While RCE may enjoy its connection with the AmBank, other banks could tap into equally or even much lower funding sources."
Sorry because my english is not very good so i hope i dont get wrong from u said i will try to give my opinion on it, how to avoid is same like the question u ask how to manage risk please go read tru their report there answer is there liao
They did make mistakes in 2013-14 because uncontrolled borrowing and failure to review customers' repayment ability resulted in losses, I believe this is also one the reason why the market has given it such a low PE in recent years. But since than they have changed their strategy and i think their strategy is very successful base on the past few years result can see a growth every year. Although the company did not make huge growth,but it has grown step by step till today.
And for ur question about the bank get into rce market, as for now i dont see it going to happen, sorry i dont know how to explain it english and im not a analysis like u. But they is some one else have writen a article about how unique is rcecap business model that curently dont see bank can go into rcecap market. And rcecap and ambank is 2 independent company. Rcecap is not rely on Ambank at all. Thanks.
I really recommended you study more of this company if u really like it because most of the question u ask just now i think in kinda easy to get the info from online now, which is not even a question for me, it only become a question when u not study enough, for me investing is not rocket science, for me is more easy to understand how their bussiness model is better. This is why i like rcecap. It may not be a company like glove or other goreng stock can go up easily 100 % until 1000% . But i like it because i know i can sleep well when i buy it and dont need to worry when the share price drop :)
Ok it write too long and took me about 2 hours for this and probably still a very bad english but i have try my best haha.
Do u understand chinese or can write in chinese? haha, i prefer write in chinese word next time. Too tired to write in english to talk to people like you like 专家
@observatory i invest base on fundamental but i also learning that when the momentum come the right way to invest is jump on the boat and let it flow, because this stock is only started breakout since Quarter 2 result out, it has been consolidate for more than 3 year with price always stuck at 1.2-1.9, but since it break rm2 last year November the price is keep going up and finally appreciate by the Market, so i believe this year is RCECAP year. As long as nothing big shit happen or bussiness going wrong i belive the market should give it at PE 10 to be fair.
That is why i dont agree when u said "But don't be misled by the seemingly low forward PE of 8 to 9 times. Current forward PE should be compared against the past 5 year average of only 6.5 times. "
u are telling me the fair PE is 6.5 and which i think is ridiculous if u are telling me u are fundamentalist and the this is the how u defined PE? Sorry i totally disagreed.
Sorry for my bad english. I may not so good in language but trust me i know this company and this counter better than averange people's. Thanks
@ observatory u like school teacher long story write but more like talk strategy on paper only. Investing is all about speed, it on the uptrend momentum now u still need to futher study how long to missed the boat? I been invested and followed this stock since 2016 until now and i never left. u can search my history comments here to see wheever i telling the truth. I think i know this stock better than u. Even that so called choivo capital talk like analysis pro like u also left this counter already but im still here as always. :)
Haha this suhei choivo still acting like pro run here run there i just stay in Rcecap and make big money liao. Just waiting and dont need to do anything and still getting a huge dividend that is better than FD
The Board of Directors of MYEG (“the Board”) wishes to inform that the Company had received a Letter of Acceptance dated 8 October 2020 from the Ministry of Health, Malaysia to undertake the provision of an online payment system for inbound travellers to register and make payment, prior to their arrival in the Country, for COVID-19 Screening Test and Quarantine Charges to be implemented at all entry points to the Country (“the Project”).
slowly and slowly finally this joker is reveal himself...as i always said his reason here is just to find a water fish and promote his fund. I wonder how many idiots invested into his fund until the next JJPTR case explode. Haha