PE = 7.82 ( Not bad)
RCE Capital Berhad (“RCE Capital” or the “Company”) is a Main Board-listed investment holding company with a share capital base of RM71 million. The Company, through its wholly-owned subsidiary RCE Marketing Sdn Bhd (“RCE Marketing”), is one of the major non-financial institution players in the niche credit cooperative market. Previously involved in media, advertising and broadcasting, RCE Capital completely divested its interests in these areas by 2004 and is now principally engaged in financial services.The Company’s main business unit, RCE Marketing, provides personal loans to government servants through strategic affiliation with credit cooperatives, where repayments are done via the Salary Deduction Scheme. Another financing unit of the Company, RCE Factoring Sdn Bhd, on the other hand provides financial solutions to the corporate sector in the form of factoring and confirming facilities.
On top of its financial services business, RCE Capital also has investments in AmFIRST Real Estate Investment Trust, one of the largest commercial space REITs in the country, as well as other properties.
Over the years, RCE Capital has tapped into the debt market to fund its rapid growth, commencing with the Fixed Rate Serial Bonds and Commercial Papers Programme totalling RM95.0 million in 2004. Following this was the issuance of RM420.0 million Fixed Rate Medium Term Notes a year later. RCE Capital’s biggest venture into the capital markets to date is its RM1.5 billion Asset-Backed Securitisation Programme. This AAA-rated programme, launched at the end of 2007 for a period of 5.5 years, is the largest consumer receivables securitisation in the country.
In line with the Company’s vision to become one of the leading non-bank financial services providers, RCE Capital continues to seek organic growth via cheaper funding and extension to the non-government sector. Additionally, the Company also aims to strengthen its distribution network and agency management on top of strategic arrangement with potential credit cooperatives to continue to expand its business. RCE Capital remains open to exploring opportunistic investment and complementary business, both locally and abroad.
