For QE31/3/2017, RCECap's net profit rose marginally by 0.5% q-o-q or 8% y-o-y to RM23 million. Its revenue is mixed - down 2% q-o-q but rose 10% y-o-y to RM63 million. Revenue rose y-o-y primarily led by higher interest and fee income backed by the expanded loan base from its consumer financing segment. Correspondingly, this led to a higher pre-tax profit of RM30.1 million in the current quarter as compared to RM28.9 million in the corresponding quarter.
Table: RCECap's last 8 quarterly results
RCECap's financial performance continued to crawl up after bottoming in last 2013.
Graph: RCECap's last 44 quarterly results
RCECap (closed at RM1.33 on May 28, 2018) has a trailing PE of 5.1 times (based on last 4 quarters' EPS of 26.02 sen). Starting this financial year, it is paying out dividend twice yearly totaling 7 sen. Dividend yield is 5.3%. Based on this PER & DY, RCECap is deemed fairly attractive.
RCECap is in a medium-term downtrend with resistance at RM1.45.
Chart 1: RCECap's weekly chart as at May 28, 2018 (Powered by ShareInvestor.com)
Chart 2: RCECap's monthly chart as at May 28, 2018 (Powered by ShareInvestor.com)
Based on continued good financial performance, and attractive valuation, RCECap is good stock for long-term investment. However it's medium-term outlook is still neutral as it is still in a downtrend line.