MoneyMe: innovative existing and new product suite has the potential to further drive top-line growth

Finance

Moneymen, Update highlights: sturdy e book growth April noticed document originations for the month (A$47m, +570% on pep) which highlighted accelerating momentum on the 3Q21 common (A$108m for the quarter). Guidance for the gross mortgage e book is now &get; A$300m (vs previous guidance of above A$265m) and income coaching used to be reiterated to be in the range of A$58m-A$62m.

We make minor changes to our FY21F/FY22F/FY23 EPS forecasts of ~-1%- +1% on mild margin adjustments. Our DCF-derived valuation and charge target remain unchanged at A$2.04. MME continues to supply robust e book increase and we accept as true with its innovative existing and new product suite has the manageable to similarly power top-line growth.

Add advice maintained.

Update suggests robust origination momentum Moneymen (MME) supplied a buying and selling replace for April-21. The replace highlighted both strong originations boom on pep (A$47m, a document vs A$7m in April-20) and accelerating momentum on the 3Q21 month-to-month common (A$108m for the quarter). MME additionally guided to a gross mortgage e book at FY21 cease of above A$300m, a ~13% expand on the preceding loan book training supplied at the 3Q21 replace off &get; A$265m (implying ~125% increase on pep). Revenue instruction was once reiterated at A$58m-A$62m (Merganser ~A$60m).

Book diversification predicted with new products.

We observe at the current investor day, MME administration expects the mortgage e book to continue to develop and diversify with its current product additions gaining traction (e.g., MME+, List Ready/Rent Ready make up ~8% of the gross mortgage e book from a standing start) as well as the addition of its new Autopay product (secured car finance with 60min approval and agreement time) which launched late April and is already transacting in vehicle

dealerships.

Changes to forecasts

We make minor modifications to our FY21F/FY22F/FY23F EPS forecasts of ~-1%-+1% on slight margin adjustments. Our DCF-derived valuation and goal rate continue to be unchanged at A$2.04.

Investment view

MME has proven robust e book boom so some distance in 2H21. We consider its revolutionary current and new product suite has the viable to in addition force top-line growth. These products, along with the advantages of its lower-cost funding facility ought to grant medium time period tailwinds for gross mortgage boom and profitability.

Add suggestion maintained.

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