Credit Corp’s Strong Fiscal 2017 Result Largely as Expected; FVE Unchanged

We retain our AUD 18.00 per share fair value estimate for no-moat-rated Credit Corp Group following the strong fiscal 2017 result of AUD 55 million, in line with our forecasts and at the top of the AUD 53 million-AUD 55 million guidance range. The AUD 0.31 final fully franked dividend was AUD 0.01 below our forecast and AUD 0.04 up on a year ago. While fiscal 2018 net profit after tax guidance of AUD 60 million-AUD 63 million was below our expectations, both operating divisions are performing well, and guidance still implies very healthy growth of 9%-14%, following 20% growth in fiscal 2017. At current levels, Credit Corp shares are fairly valued.