Credit Corp Limited: Charged-Off, Switched-On: Setup for Results

研报英文原文证据摘录

Credit Corp Limited: Charged-Off, Switched-On: Setup for Results

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

28 July 2026

Credit Corp Limited Overweight

CCP.AX, CCP AU

Charged-Off, Switched-On: Setup for Results Price (27 Jul 26):A$13.65

Price Target (Dec-26):A$19.60

CCP remains our top pick across the small-cap coverage; following our mid- Australia

year prospects note (here), we review our expectations versus consensus and key

Emerging Companies

drivers to watch. In short: 1) PDL purchasing environment (supportive in the US

with improvements within legal channels; 2) rising green shoots in ANZ; and 3) Don Carducci AC

valuation (1.0x price to book) mean the stock is positioned well into results with (61-2) 9003-8379

donald.n.carducci@jpmorgan.com

multiple incremental (positive) catalysts that we review below. Retain OW, PT A J.P. Morgan Securities Australia Limited

$19.60.

• US PDL activity; industry comps healthy: US PDL supply conditions are Half Yearly Forecasts (FYE Jun)

favourable; elevated revolving credit balances (US$1,344bn), credit card Adj. EPS (A$)

charge-off rates (3.84%) and delinquency rates (2.92%) continue driving 2025A 2026E 2027E

H1 0.64 0.64 0.78

portfolio supply. ECPG, JCAP and PRAA all delivered solid 1Q26 results, with H2 0.73 0.88 0.88

stable-to-improving cash efficiency margins and no deterioration in consumer FY 1.37 1.52 1.65

payment behaviour (results overleaf).

Style Exposure

• Maturation of the US legal channel: JCAP flagged the legal channel as an

increasingly important growth driver – a shift in tone from 4Q25. CCP has

lagged on the benefit relative to comps but we note their focus on the channel

(bigger attorney panels, pulling stagnant accounts from underperforming firms

and acquiring verified contact details) to lift enforcement.