RCE Capital rises as much as 2.9% after declaring dividend with bonus

RCE Capital rises as much as 2.9% after declaring dividend with bonus
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KUALA LUMPUR (Nov 10): RCE Capital Bhd rose as much as 11 sen or 2.9% to a high of RM3.90 on Wednesday morning after announcing a dividend with bonus on Tuesday.

At 10.27am, the counter pared some gains to RM3.84, still up five sen or 1.32%. It saw one million shares traded.

At RM3.84, the counter was valued at RM1.45 billion.

Year-to-date, the counter has risen 41.18%.

In a bourse filing on Tuesday (Nov 9), RCE Capital announced a first interim dividend of seven sen per share, totalling an estimated RM25.56 million, to be paid out to shareholders on Dec 6.

It also proposed distribution of up to 18.78 million treasury shares as dividend shares, on the basis of one treasury share for every existing 20 shares held on an entitlement date to be fixed, together with a bonus issue of up to 360.25 million shares on the basis of 19 shares for every 21 shares held.

The rewards come despite of the group's net profit for the second quarter ended Sept 30, 2021 (2QFY22) dipping 10.9% to RM31.55 million from RM32.99 million a year earlier, due to lower refinancing activities by customers amid the implementation of the Full Movement Control Order that restricted business activities nationwide from June 1.

Its quarterly revenue also slipped 8.74% to RM69.82 million from RM75.92 million a year ago.

On prospects, the group said following the gradual easing of movement restrictions, more sales campaigns are in the pipeline to bring customers on board, complemented by its digital transformation initiatives.

"The group will continue to be prudent in its portfolio quality management and expects the financial year ending March 31, 2022 to remain profitable," it said.

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RCE Capital declares seven sen dividend with bonus and dividend shares despite lower 2Q profit

Surin Murugiah