RCE Capital Berhad

RCE received a strong buy call from Standard & Poor. PM has finally unveiled a much-anticipated and much-deservered pay rise for the civil service.
This move is positive for RCE, which provides financing to the civil service. Its loan book has grown by leaps and bounds, increasing from just RM69mil as at end-June 2005 to RM366mil as at end-Dec 2006. S&P expects this rapid pace to continue, aided in part by the increase in disposable income for the civil service.
The target price is RM1.05. S&P also project strong earnings growth over the next few years.