Credit Corp (CCP) provided a trading update for the first four months of FY17. Key operational metrics include: cash collected +11% on the previous corresponding period; payment arrangements +3.8% over the four months; and the gross lending book growing 6% to A$143m. CCP stated that its lending book is on track to achieve proforma returns in FY18 (~15% ROE), which is in-line with our expectations. In our view, CCP already has an earnings base which gives relatively solid earnings visibility into FY18F. In our view, CCP has strong growth potential (17% three-year EPS CAGR), supported by a proven management team, solid cash flow generation, and balance sheet capacity. Read our note, including the analyst recommendation: (VIEW LINK)


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