StockAlliance, thanks for the coverage on RCECAP in i3investor forum.

RCE CAPITAL BERHAD
(Company No. 2444-M)
MEDIA RELEASE
26 May 2016

RCE GROUP ANNOUNCES 18.6% INCREASE IN ANNUAL PROFIT BEFORE TAX (“PBT”)

 Annual PBT up 18.6% against a year ago
 16.9% growth in loan base driven by market demand
 Higher annual revenue of RM162.4 million
 Implementation of Central Credit Reference Information System (“CCRIS”) in progress
 Completion of Share Consolidation and Capital Repayment
 Proposed final single-tier dividend of 3.5 sen per share

OTHERS RCE CAPITAL BERHAD ("RCE") - FINAL DIVIDEND

RCE CAPITAL BERHAD

Type Announcement
Subject OTHERS
Description RCE CAPITAL BERHAD ("RCE")
- FINAL DIVIDEND
The Board of Directors of RCE is pleased to propose a final single-tier dividend of 3.5 sen per ordinary share in respect of the financial year ended 31 March 2016, subject to the approval of the shareholders at the forthcoming Sixty-Second Annual General Meeting of RCE.

The entitlement date and date of payment in respect of the aforesaid final dividend will be determined and announced in due course.

This announcement is dated 26 May 2016.

Yippy68, your yippy positive and confident stance, LIKE.

Post El-Nino, CPO should see some upside but market sentiment is on the cautious side.
1. Palm oil production is falling. (Demand-supply play)
2. June Export tax 5.5% (soft market rebound)
3. Coming Ramadan reason (cyclical demand against falling inventory)
Watch video for market overview:
https://youtu.be/vvp8i-v1rwI

Today last price 0.78. Can RCECAP cross 0.80? (post-consolidation readjusted price)

Week beginning 23 May, 4th Quarter Report ending 31 March 2016 is due for release.

Latecomer first-timer, but lucky enough to get some units to enjoy the cash distribution honey.

Any more goodie from RCECAP? Wait for the week beginning 23 May.

Siti, well said.

Joblessrich, thanks for your kind words.

Rocketboy91, nothing extraordinary but just plain, common sense with some logical thinking and reasoning by studying the data available in the quarterly reports, Annual Reports, especially the financial documents like comprehensive income, balance sheet and cash flow plus understanding current market sentiment or trend.

Whether companies or individuals, borrowing money is a common thing to do. In difficult times, it is not easy for individuals to get loans from banks. RCE Capital is a non-bank but licensed company whose core business is weighted on providing personal loan financing services to about 1.6 million civil servants in the country.

In its 3rd Quarterly report, RCE Capital stated that its profit went up more than four times to RM13 million was due to higher interest income, higher loan base, strengthening credit quality, cost control and improved margin products. Its press release ended with, " Barring unforeseen circumstances, it expects its performance in FY16 to be better than the previous year's results." Through this statement, the company is hinting that a good performance is expected in the 4th Quarter ending 31 March 2016.

From my personal understanding and interpretation, I deduce that besides the generous cash repayment of 0.075 sen, I believe that the dividend for 2016 will improve. Leveraging on this confidence, I set up a trading plan to take advantage of this golden opportunity to maximise my earnings by steadily accumulating more units and consolidating my position in RCECAP. On entitlement date, besides the handsome cash distribution, I tactically unlocked more profit by selling 12,500 units. (based on readjusted share price).

My next expectation is the dividend for 2016. Perhaps, another special dividend like 2015! This time it gives me another opportunity for me to unlock further profit as I have a second tranche of 12,500 units for disposal. Nevertheless, my happiest moment is knowing that my circle of friends are also enjoying the angpow of cash distribution like me on 6 May.

Congratulations to fellow investors at RCE Capital on the recently concluded cash repayment.

4 years

Siti, payment on Friday, 6 May 2016

rocketboy, my averaged-weighted cost was 0.273 before ex-date. After ex-date, share price was readjusted to 0.80. On 25 April, complying with the 25% maximum sales limit, I sold 12500 units at 0.760 (consolidated) with a 0.487 gain per unit. (share value increase)

Taking 2015 1.5 sen dividend, after share consolidation based on 1:4 ratio, 2016 dividend is forecast as 1.5 x 4 = 6.0

hng33, you have a unique trading style. Jual, beli, jual, beli. Keluar, masuk, keluar, masuk. No problem asalkan UNTUNG! Like!

Rocketboy91, the share consolidation is a strategic capital mechanism to impact a successful "efficient capital structure" which will significantly enhance the company EPS, ROE & NA to the benefit of the shareholders in terms of superior equity value on 'the long term rates of return.' Firstly, the near term benefit of cash distribution. Secondly, post share consolidation, the increase of share price (equity value). Thirdly, we don't have to pay a single sen for the share value increase. Fourthly, an increase in the quantum of dividend distribution is also not remotely possible.

yanxuan8,thanks for the additional input.

Rocketboy91, your apprehension is quite understandable. To allay your fear, please read the Circular to the Shareholders dated 23 Dec 2015 again and you will get a clear picture of the situation.

Circular, p4 under caption "Rationale for the Proposals"

The Proposals form part of RCE’s capital management strategy which seeks [to achieve a more efficient capital structure]. In this respect, the Proposals are expected to improve the Group’s EPS, NA per share and ROE without affecting shareholders’ shareholdings percentage following the completion of the Proposals.

Accordingly, [RCE after taking consideration its objectives above and future financial obligations and operations requirements], proposes to undertake the Proposed Capital Repayment which is also intended [to reward Shareholders for their continuous support towards the Group.]
After the completion of the Proposed Capital Repayment, [the Group’s financial position is expected to remain healthy, supported by the Group’s cash and cash equivalents reserves and continued cash flow generated from its operations, which are expected to support, inter-alia, its operational needs, debt repayment obligations, as well as any investment opportunities which may arise in the immediate to medium term.]

In addition to [rewarding Shareholders through cash distribution], the returning of equity to Shareholders is expected to [enhance Shareholders’ long term rates of return.]

To my knowledge, quite a number of companies are also carrying out similar share reduction and share consolidation exercises. (Please refer to Starbiz, 11 April 2016, page 10 - BONUS/RIGHTS ISSUE). Most of them just CANCEL OFF the par values of their shares without any capital repayment to their shareholders at all. RCECAP investors are receiving 7.5 sen (cash) for every unit they hold. RCE Capital Management, with shareholders interest close to their heart, sincerely implements the 'Rationale for the proposals.'
In my opinion, RCE Capital Bhd has good cash reserves. The capital repayment initiative involves RM98.3 million which is internally generated. Last year, dividend payment alone was RM19.2 million and the special interim dividend incurred RM133.47 million. Altogether the amount of payment involves RM250.97 million.

What will be the share price after share consolidation?

Taking as reference, Appendix 1, p.11 - Historical Share Prices (Circular 23 Dec 2015):

Assuming last transacted market price of RCECAP share at LPD (25 April) is 0.275, then the share price after consolidation will be 0.20 x 4 = 0.80 sen

Notice of Book Closure contd.

Remarks 3 : Participating Organisations are to take note of the following Capital Repayment and Share Consolidation exercise by RCE CAPITAL BERHAD.

The Capital Repayment and Share Consolidation comprise the following:-

(a) Capital repayment of RM0.075 for each ordinary share of RM0.10 each in RCE Capital Berhad ("Capital Repayment") by way of a reduction of the issued and paid-up share capital of RCE under Section 64 of the Companies Act, 1965, whereby the par value of each ordinary share in RCE will be reduced from RM0.10 per share to RM0.025 per share ("Share Capital Reduction").

(b) Share consolidation involving the consolidation of every four (4) ordinary shares of RM0.025 each in RCE Capital Berhad ("RCE") into one (1) ordinary share of RM0.10 each in RCE ("Consolidated Share") after the Share Capital Reduction ("Share Consolidation").

In relation to the Capital Repayment and Share Consolidation undertaken by RCECAP as a SPEEDS Corporate Exercise, Bursa Malaysia Securities Berhad would like to highlight that:

(a) on or after the Ex-date on 21 April 2016, trading of RCECAP shares will be base on the newly adjusted share after the Capital Repayment and Share Consolidation of RCECAP shares,

(b) on the basis of settlement taking place on or after 25 April 2016 with consolidated RCECAP shares of RM 0.10 each, any entitled shareholder who owns RCECAP shares as at Ex-date may sell only up to the maximum RCECAP shares he expects to receive after the Capital Repayment and Share Consolidation, i.e. the reduced amount, on or after the Ex-date 21 April 2016.

With the adjustments pursuant to the Capital Repayment and Share Consolidation effected on RCECAP shareholders’ CDS account at the end of the Entitlement Date (“Books Closure Date”), an entitled RCECAP shareholder may use the following basis to estimate the maximum number of RCECAP shares that he may sell from the Ex-date until the Book Closing Date which is from 21 April 2016 until 25 April 2016.

Number of RCECAP shares that may be = Number of shares held x 0.25

sold on 21 April 2016 until 25 April 2016 (All fractional shares computed should be disregarded)

Illustration:

For example, if Mr X owns or purchases 1000 RCECAP shares (of RM 0.10 par value each) on cum basis on 20 April 2016, his CDS account would still show 1000 RCECAP shares (of RM 0.10 par value each) until 25 April 2016. However, as a result of the above Capital Repayment and Share Consolidation exercise, Mr X’s 1000 RCECAP shares of RM 0.10 each in his CDS account will be adjusted to 250 RCECAP shares of RM 0.10 each on the night of 25 April 2016 which is the Book Closing Date. Therefore Mr X may, if he so wishes, sells only up to 250 RCECAP shares of RM 0.10 each on or after the Ex-date i.e. from 21 April 2016 onwards.

Participating Organisations are hereby requested to caution all dealers and remisiers that, during the period from 21 April 2016 until 25 April 2016, they are only entitled to sell the maximum of 25% of the shares owned before the Ex-date. Participants Organisations are reminded that it is important to caution all dealers and remisiers on the above to prevent the dealers and remisiers from overselling of their client’s position.

Announcement Info
Company Name RCE CAPITAL BERHAD
Stock Name RCECAP
Date Announced 15 Apr 2016
Category Listing Circular
Reference Number ILC-15042016-00002

RCECAP - Notice of Book Closure
RCE CAPITAL BERHAD

1) Capital repayment of RM0.075 for each ordinary share of RM0.10 each in RCE Capital Berhad ("RCE") ("Capital Repayment").

2) Share consolidation involving the consolidation of every four (4) ordinary shares of RM0.025 each in RCE Capital Berhad ("RCE") into one (1) ordinary share of RM0.10 each in RCE ("Consolidated Share") after the Share Capital Reduction ("Share Consolidation").

Kindly be advised of the following :

1) The above Company's securities will be traded and quoted "Ex - All” as from: 21 Apr 2016
2) The last date of lodgment : 25 Apr 2016
3) Date Payable : 6 May 2016

Remarks 1 : Reference is made to RCE's announcement dated 11 April 2016 in relation to the entitlement date of the Share Consolidation ("Announcement"). Unless otherwise stated, the definitions used throughout this announcement shall have the same meaning as defined in the Announcement. Please note that the entitlement date of the Capital Repayment and Share Consolidation is on 25 April 2016. Accordingly, shareholders of RCE whose names appear in RCE's Record of Depositors as at 5.00 p.m. on 25 April 2016 shall be entitled to both the Capital Repayment and Share Consolidation. The Capital Repayment will be implemented by way of a reduction of the issued and paid-up share capital of RCE under Section 64 of the Companies Act, 1965, whereby the par value of each ordinary share in RCE will be reduced from RM0.10 per share to RM0.025 per share ("Share Capital Reduction") as approved by RCE's shareholders on 14 January 2016 and confirmed by the High Court of Malaya on 5 April 2016. RCE's shareholders, whose names appear in RCE's Record of Depositors as at 5.00 p.m. on 25 April 2016 ("Capital Repayment Entitlement Date"), shall receive a cash distribution under the Capital Repayment of RM0.075 for each ordinary share of RM0.10 each in RCE held on the Capital Repayment Entitlement Date. The trading of RCE shares on the Main Market of Bursa Malaysia Securities Berhad will not be suspended for the purpose of the Capital Repayment. RCE's shareholders are not required to take any action in respect of the Capital Repayment. This announcement is dated 11 April 2016.

Remarks 2 : Reference is made to RCE's announcement dated 11 April 2016 in relation to the entitlement date of the Capital Repayment ("Announcement"). Unless otherwise stated, the definitions used throughout this announcement shall have the same meaning as defined in the Announcement. Please note that the entitlement date of the Capital Repayment and Share Consolidation is on 25 April 2016. Accordingly, shareholders of RCE whose names appear in RCE's Record of Depositors as at 5.00 p.m. on 25 April 2016 shall be entitled to both the Capital Repayment and Share Consolidation. The Capital Repayment involves a cash distribution of RM0.075 for each ordinary share of RM0.10 each in RCE held on the Capital Repayment Entitlement Date. The Capital Repayment will be implemented by way of Share Capital Reduction as approved by RCE's shareholders on 14 January 2016 and confirmed by the High Court of Malaya on 5 April 2016. Immediately after the Share Capital Reduction, RCE will undertake the Share Consolidation. In determining shareholders' entitlement to the Consolidated Shares, fractional entitlements, if any, will be disregarded and shall be dealt with in such manner as the Board of Directors of RCE shall in its absolute discretion deems fit and expedient in order to minimize the incidence of odd lots, and in the best interest of RCE. The date of the listing of and quotation for the Consolidated Shares shall be on 26 April 2016, being the next market day immediately after the entitlement date of the Share Consolidation. There will be no suspension of trading of RCE shares on Bursa Malaysia Securities Berhad ("Bursa Securities") for the purpose of implementing the Share Consolidation. The notices of allotment will be issued and despatched to all the entitled shareholders of RCE within four (4) market days after the date of the listing of and quotation for the Consolidated Shares on the Main Market of Bursa Securities. RCE's shareholders are not required to take any action in respect of the Share Consolidation. This announcement is dated 11 April 2016.

Precisely, rocketboy91. "Efficient capital structure," which translates into better EPS, NA per share and ROE and enhancing shareholders' long term rates of return.

Profit taking for those with strong position at cheap price previously.

Circular(Multiple Proposals) to Shareholders
Rationale for the Proposals (p.4)
".... efficient capital structure ... without affecting shareholders' shareholdings percentage following the completion of the proposals."

Effects of Proposals (p.5)
1. Under minimum or maximum scenario
2. NA and gearing ratio
3. No impact on earnings ending 31 March 2016

The above content will help shed some light on post-share consolidation scenario.

Yes, sudahkena. The financial year ending 31 March 2016 is forecast to be better than previous year. Read the 2nd last paragraph of the report below quoting the company.

RCE Capital's 3Q profit quadruples on investment gain, higher interest income
By Tan Siew Mung / theedgemarkets.com

KUALA LUMPUR (Feb 3): RCE Capital Bhd’s net profit went up more than four times to RM13 million in the third quarter ended 31 Dec 2015 (3QFY16), from RM3.13 million a year ago, as its revenue rose 23.9%, primarily driven by higher interest income.

The favourable results were also because of a RM1.9 million net gain on disposal of an investment property, its bourse filing today showed. RCE also noted that the last corresponding quarter's net profit came in after taking into consideration the preference share dividend paid.

Meanwhile, its revenue for the quarter increased by 23.9% to RM41.55 million, from RM33.54 million in the previous year, mainly contributed by a RM7.9 million increase in interest income from the loan financing segment, due to a higher loan base and the introduction of improved margin products.

For the cumulative nine months (9MFY16), the group’s net profit more than doubled to RM32.66 million, from RM15.65 million in 9MFY15; while its revenue rose 22.6% to RM118.08 million, from RM96.3 million, primarily driven by higher interest income, as the loan base grew by 16.9% to RM1.362 billion from RM1.165 billion.

The group said in a statement that the results were due to the group's initiatives to improve asset quality, which have been encouraging.

“The group remains focused on strengthening credit quality, improving turnaround time for loan disbursements and controlling costs,” it said.

In the absence of unexpected events, the group’s financial performance for its financial year ending March 31, 2016 will be an improvement over the previous year’s results, it added.

RCE Capital fell 1.92% to 26 sen today, for a market capitalisation of RM331.73 million.

Still too many shares floating in open market? Price hardly moves up.

Payment date: 6 May 2016

WOW! Superb news.
Share consolidate

RCE CAPITAL BERHAD

EX-date 21 Apr 2016
Entitlement date 25 Apr 2016
Entitlement time 05:00 PM
Entitlement subject Share consolidate
Entitlement description Share consolidation involving the consolidation of every four (4) ordinary shares of RM0.025 each in RCE Capital Berhad ("RCE") into one (1) ordinary share of RM0.10 each in RCE ("Consolidated Share") after the Share Capital Reduction ("Share Consolidation")
Period of interest payment to
Financial Year End 31 Mar 2017
Share transfer book & register of members will be to closed from (both dates inclusive) for the purpose of determining the entitlement
Registrar or Service Provider name, address, telephone no TRICOR INVESTOR & ISSUING HOUSE SERVICES SDN BHD
Unit 32-01, Level 32, Tower A,
Vertical Business Suite, Avenue 3, Bangsar South,
No. 8, Jalan Kerinchi
59200Kuala Lumpur
Tel:0327839299
Fax:0327839222
Payment date
a.Securities transferred into the Depositor's Securities Account before 4:00 pm in respect of transfers 25 Apr 2016
b.Securities deposited into the Depositor's Securities Account before 12:30 pm in respect of securities exempted from mandatory deposit
c. Securities bought on the Exchange on a cum entitlement basis according to the Rules of the Exchange.
Number of new shares/securities issued (units) (If applicable)
Entitlement indicator Ratio
Ratio 1 : 4
Rights Issue/Offer Price
Par Value Malaysian Ringgit (MYR) 0.025


Remarks :
Reference is made to RCE's announcement dated 11 April 2016 in relation to the entitlement date of the Capital Repayment ("Announcement"). Unless otherwise stated, the definitions used throughout this announcement shall have the same meaning as defined in the Announcement.

Please note that the entitlement date of the Capital Repayment and Share Consolidation is on 25 April 2016. Accordingly, shareholders of RCE whose names appear in RCE's Record of Depositors as at 5.00 p.m. on 25 April 2016 shall be entitled to both the Capital Repayment and Share Consolidation.

The Capital Repayment involves a cash distribution of RM0.075 for each ordinary share of RM0.10 each in RCE held on the Capital Repayment Entitlement Date. The Capital Repayment will be implemented by way of Share Capital Reduction as approved by RCE's shareholders on 14 January 2016 and confirmed by the High Court of Malaya on 5 April 2016.

Immediately after the Share Capital Reduction, RCE will undertake the Share Consolidation. In determining shareholders' entitlement to the Consolidated Shares, fractional entitlements, if any, will be disregarded and shall be dealt with in such manner as the Board of Directors of RCE shall in its absolute discretion deems fit and expedient in order to minimize the incidence of odd lots, and in the best interest of RCE.

The date of the listing of and quotation for the Consolidated Shares shall be on 26 April 2016, being the next market day immediately after the entitlement date of the Share Consolidation.

There will be no suspension of trading of RCE shares on Bursa Malaysia Securities Berhad ("Bursa Securities") for the purpose of implementing the Share Consolidation.

The notices of allotment will be issued and despatched to all the entitled shareholders of RCE within four (4) market days after the date of the listing of and quotation for the Consolidated Shares on the Main Market of Bursa Securities.

RCE's shareholders are not required to take any action in respect of the Share Consolidation.

This announcement is dated 11 April 2016.

Today managed to top up another 10K units through GTD @ 0.275.

Hopefully 4th Quarterly Results ending 31 March 2016 are good. Then it would be a bonanza for RCECAP shareholders.

Great.Thanks,tomjohor.

Yes, hng33. Probably capital repayment will be fully done before end of April.

Circular to the Shareholders : Multiple Proposals (see p.2-4)
3 Stages of Implementation
1. Share repayment - 7.5 sen per unit to shareholders
2. Share consolidation - e.g. LPD 0.265 - 0.075 = 0.19 ; 0.19 × 4 = 0.76
3. Share price readjustment & relisting at Bursa Malaysia
Reference:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4958169

When sealed copy of the order by the High Court of Malaya confirming the Proposed Share Capital Reduction, is obtained on 5 April 2016 and ex-date of entitlement fixed, sure lagi NAIK! Wait for windfall.

Gforce2, appreciate your analysis.

Triple good news! Capital repayment, share consolidation and 2016 dividend?

Speakup, fully agree with you.These days the ordinary people are more concerned of their daily three basic meals, breakfast, lunch and dinner. About 3% (inflation), 6%(GST) and ?%(currency depreciation) disappears away even before they begin to spend!They can't even think of gold, what more buying gold.

Great news regarding MULTIPLE PROPOSALS! Extract from Bursa Malaysia announcement:
"On behalf of the Board of Directors of RCE, AmInvestment Bank Berhad wishes to announce that the hearing of the petition for the Proposed Share Capital Reduction is fixed on 5 April 2016. In this respect, the notice of hearing of the petition will be advertised in ‘The Star’ and ‘Nanyang Siang Pau’ newspapers on 8 March 2016.

Upon obtaining the sealed copy of the order by the High Court of Malaya confirming the Proposed Share Capital Reduction, RCE will proceed to implement the Proposals.

This announcement is dated 7 March 2016.

Acquisitions of shares by former Board Chairman TS Azman Hashim, board director & son in Feb could be indication capital repayment coming soon.

Recent newsflow that many civil servants are taking loans is good news for RCECAP snd MBSB. Difficult to get loans from banks.

Yes, share buyback @0.275. Sama2 tunggu RCECAP letup!

kenen, when ex-date fixed may meletup.

Good 3rd Quarterly Financial Report ending 31 Dec 2015.

After share consolidation, share price more value too?

EGM tomorrow.

Recommended reading (e-book format):
1. John C. Bogle - Common Sense on Mutual Funds, Fully Updated 10th Anniversary Edition, WILEY (2009)
2. Christine Benz - Morningstar Guide to Mutual Funds, Five-Star Strategies for Success, WILEY (2005)

Great field day! Great swing!

Hot stocks come with hot risks!

Company on share-buyback to sustain price.