😌Peace of mind retirement assets, a money-making machine in my eyes
When I invest in a company for the long term, I demand to think carefully and record the reasons for investing in it for future review. I didn't expect $RCECAP (9296.MY)$ Can make me write so much 😄
$RCECAP (9296.MY)$ The business model is very simple, which is to provide loans to civil servants. Civil servants have installment payments deducted before receiving their salaries.
Here are the advantages I personally think of this business model:
Large customer base, few competitors
-Malaysia's population is 34 million, with 1.7 million civil servants, meaning that for every 20 people in the country, there is one civil servant, making it one of the countries with the highest percentage of civil servants to population globally
Very few competitors in this industry, it's not just about having money to play. The so-called competition is actually a group.cartelMaintain and control pricing together.
- Loans can be used for pilgrimage, purchasing household appliances, starting a business, renovation, children's education, and travel. They can be used for any purpose because the purpose does not matter, what matters is automatic salary deduction.
- Civil servants have secure jobs and will not face unemployment due to market downturns. Their salaries are deducted before they receive them, resulting in very low bad debt rates.
- Expanding business does not require a significant increase in operating costs, and not even the need for debt collectors. Increasing business volume only requires one condition, "civil servant salary increase". And I can hardly find any information indicating that civil servants did not receive a salary increase that year.
-Stable, predictable, and transparent cash inflow every month, with errors possibly not exceeding 1%. It allows for a clear control of cash flow and avoids overspending, lack of liquidity, and similar situations.
- It will not be affected by political factors. No matter who is in government, civil servants remain the same. Sometimes, even political struggles to win the votes of civil servants and provide salary increases can actually increase the company's performance.
-The company's business is only focused on Malaysia and will not expand to other countries. Moreover, the business is simple and singular, in a positive cycle of continuous growth, with an increasing amount of cash.Dividend payment，pay bonus shares, because the major shareholders will also benefit greatly.
-In October 2024, it was announced that civil servants would receive a salary increase, which will be implemented in December. Therefore, RCE will experience a wave of growth and will need to reserve a large amount of cash for lending. So it is being distributed.Bonus SharesInstead of dividends.
Looking back at the historical records, after dividend or bonus shares are issued, the stock price only fluctuates slightly and quickly returns to the previous price, continuing to rise.
Looking at the stock prices during the 2019 COVID-19 epidemic, it was as steady as a rock, more stable than buying gold.
Personal opinion, not investment advice: This company is undoubtedly of high quality for value investment. Of course, I don't expect it to expand into a multinational well-known company with a diversified business model. But precisely because it has such a simple and conservative model, it can be called an old-fashioned but solid and reliable one.Cash printer 💵It is not excessive to put it in a retirement investment portfolio, which is very suitable. The most important thing is peace of mind ❤️![]()
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