One of the Top Consumer Analysts Upgrades RCECAP to Buy After 2Q Earnings Grew for the First Time in 7 Quarters
StockTipRatings ·
Maybank Investment Bank analyst Yin Shao Yang has upgraded RCE Capital to a Buy from Hold rating, with a higher target price of RM1.16 (from RM1.12), implying a 13% upside. The company delivered 2QFY26 earnings in line with expectations, and its quarterly earnings grew YoY for the first time after seven consecutive quarters of YoY decline.
The company posted a net profit of RM29.3 million (+5% YoY, +13% QoQ), driven mainly by higher fee income from increased disbursements and lower allowances for impairment losses on receivables.
Yin Shao Yang, currently ranked No.2 among 39 analysts covering the consumer products & services sector on StockTipRatings.com (based on data since 2023), holds a 76% expert rating with a 17% average return and a 69% success rate across the stocks he covered over a 1-year period following his calls. He is also ranked No.1 among 4 analysts covering the stock.
Additionally, Yin noted that the latest non-performing financing (NPF) ratio eased to 4.7% from the 1QFY26 high of 4.8%. He added that the company is hopeful disbursements will accelerate — and the NPF ratio will continue to moderate — from January 2026 onwards, supported by the 7% civil service salary hike.
As of 11:40 a.m. on November 19, RCE Capital's share price rose 4.6% to RM1.13.
The call: Maybank on RCE CAPITAL BERHAD
- Rating
- Buy
- Target price
- RM 1.16 (from RM 1.12)
- Upside at call
- 2.7%
Yin Shao Yang's 12-month track record
No.9 of 19 analysts at Maybank
- Success rate
- 65%
- Average return
- 6%
- Stocks covered
- 14
Consensus target price for RCECAP
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