Mid-Year Prospects: SMID

Research evidence excerpt

Mid-Year Prospects: SMID

J P M O R G A N Asia Pacific Equity Research

23 July 2026

Mid-Year Prospects

SMID

This report forms part of the J.P. Morgan Australia Mid-Year Prospects series as Australia

we take stock at the mid-point of 2026 and set out our Top Picks and Least Preferred

Emerging Companies

stocks for the remainder of the year.

Don Carducci AC

(61-2) 9003-8379

donald.n.carducci@jpmorgan.com

Top Pick – Credit Corp (CCP AU, OW)

George Stewart

US PDL activity; industry comps healthy: US PDL supply conditions remain (61-2) 9003-8199

favourable, with elevated revolving credit balances (US$1,344bn), credit card george.stewart@jpmorgan.com

charge-off rates (3.84%) and delinquency rates (2.92%) continuing to drive J.P. Morgan Securities Australia Limited

portfolio supply. ECPG, JCAP and PRAA all delivered solid 1Q26 results, with

stable-to-improving cash efficiency margins and no deterioration in consumer

payment behaviour. ECPG upgraded its global collections guidance to US$2.8bn CCP.AX, CCP AU

and maintained FY26 purchase guidance of US$1.4-1.5bn, while JCAP's Overweight

committed forward flows of US$353m (up ~28% from 31 December) confirm Price (23 Jul 26): A$13.42

originators' willingness to enter into forward flow arrangements. This is supportive Price Target (Dec-26): A$19.60

of CCP’s future US PDL book growth.

TPW.AX, TPW AU

Collections: AI beneficiaries to the margins: Collections efficiency across the

industry is improving, driven by enhanced digital capabilities and process Underweight

improvements in legal channels, and we view CCP as a net beneficiary of AI-driven Price (23 Jul 26): A$4.97

operational improvements. We are also supportive of CCP's re-gearing to 40% Price Target (Dec-26): A$3.70

(noting competitors are operating at ~80%+ gearing).