KUALA LUMPUR (Sept 2): RCE Capital Bhd said it will be tying up with Bank Negara Malaysia by end-2015, using the latter's Central Credit Reference Information System (CCRIS).
RCE (fundamental: 1.25 ; valuation: 2.00)'s chief executive officer Loh Kam Chuin said the move is in line with the company's cautious outlook on the current business environment.
"Definitely the focus is not so much on growing the business, but more on ensuring we have good quality loans. Having said that, we will be tying up with the central bank for the CCRIS.
"With that, we will have a more comprehensive look at the borrowers portfolio," he told the press, following RCE's annual general meeting (AGM) today.
The CCRIS is a database that allows users to assess the profile and total exposure of borrowers, allowing RCE to be more thorough in issuing loans, thus maintaining the quality of its lendings.
For the financial year ending March 31, 2016 (FY16), Loh said the company maintains a cautious outlook, with the consumer financing segment to be the main contributor to the company's performance.
Meanwhile, he said that RCE will not be focusing on the commercial financing segment, as the segment is seen to be challenging.
"We have not been focusing too much on the business. For the confirming and factoring side, it is quite high-risk.
"We want to take a step back and reassess the situation. But there is still a customer base right now, that's still generating income for us," he said.
Asked if the company is eyeing any acquisition targets, Loh said RCE does not have any particular target at this point in time.
However, he said the company remains open to opportunities, as long as it complements and provides value to RCE.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)