RCECAP Quarterly Report Analysis
Results RCECAP posted a net profit of RM22.8m in 1Q21 compared with a net profit of RM24.1m in 1Q20 due to lower revenue of RM2.2m and additional allowance for impairment of RM2.6m. Extrapolated profits stand at RM91.3m (-17% YoY). Lower Revenue - lower RM2.1m and RM1.6m net fee and early settlement profit income respectively given the restricted business activities since the Movement Control Order on 18 March 2020. Additional Impairment - additional allowances for impairment of RM2.6m recognized to take into account the unfavourable impact arising from the further contraction of the forecasted Real Gross Domestic Product. Prospect - Since the Recovery MCO (RMCO), the Group has launched sales and marketing initiatives to boost disbursements. Besides, there is a increase in demand in financial applications during RMCO. I believe that RCECAP's business performance is able to back to pre-COVID levels in subsequent quarter. Impact of Covid-19 - Operations were slightly affected by