Another Malaysia Boleh for the Local Guinness Book of Records

Look at this picture. Look how large is this garland;fit for a God. No wonder PM Najib is having one hearty laugh! He must truly be God-like to wear this well. One more for the local Guinness Book of Records.

Three shouts of Malaysia Boleh for PM Najib, every one!

Another Twist to the English Issue

What a laugh. We are at it again.

In an apparent response to the just concluded illegal demonstration by the SMK Sri Hartamas Parent-Teacher Association (PTA),DPM Muhyidden has added some Ajinomoto again to this continuing issue. Handing a laurel of peace, Muhyuddin says all students who began studying Mathematics and Science in English could continue to do so until they finished their secondary school education.

He said even his Cabinet colleagues are worried about this and assured all concerned parents that their children could continue to study in dual language until they complete their entire primary and secondary education.

“We have discussed the matter,” he told Malaysian journalists covering his five-day working visit to Perth which ended today.

Muhyiddin said that students who had started learning the two subjects in English would continue to be taught in English, and have the option and freedom of answering examination questions in either Bahasa Malaysia or English.

It's just one big merry-go-round

So its Malaysia Boleh lagi for English!

The Sun rise on RCE

RCE Capital Bhd is on the go again.

It posted 36% higher net profit of RM18.5mil for its first quarter to June 30 against the previous corresponding period, boosted by greater demand for personal financing in the credit cooperative market.

Revenue jumped 42.2% to RM66.98mil from a year ago. In a filing with Bursa Malaysia, RCE Capital said the group’s net loans receivables grew from RM754.4mil to RM1bil, representing an increase of 32.7% compared with the previous corresponding period.

What does analysts say about the RCE results?

First, the earnings, together with revenue and loan portfolio growth were within their expectation. Net loan receivables showed robust growth, up 5% qoq and 33% yoy, to RM1bn. As expected, RCE's growth rate was very much in-line with Bank Rakyat's growth, which is also a loan provider to government servants via cooperatives. Annualising its 5% qoq loan growth, the expected full-year net loan receivables will grow possibly by 15-20%.

Secondly, there are many RCE shareholders out there who are not too happy with the recent private placement at 55sen,a 10% below the 5-day weighted average price of 61sen benefiting only the ones who took the shares. Their unhappiness could be myopic as in the MID to LONG TERM, it is good for them as it provides the necessary capital for RCE to fund its trajectory loan growth. Raising new loans, ie ABS, will be difficult and will take at least 6 months in the current credit environment. The placement price could definitely have been better. Anyway this placement price is a good 22% above its latest NTA of 45sen. With a high ROE of 20-25%, the new capital will be well deployed and earnings enhanced for all shareholders.

Thirdly, valuation is undemanding; RCE has a market cap of RM450m++ and with expected net profit of RM74-76m for FYE03/10, share price is valued at 6x. Share price could rally tomorrow based on this excellent set of results.

Let us see whether the market will respond positively tomorrow.