SOLVAR LIMITED (SVR)
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26/02/2025

1

Add

$1.55

16.54%

Morgans notes Solvar's 1H25 underlying net profit was 9% higher than its forecast, and bad debts at 4.1% remained within the company's 3.5-4.5% target range.

The company reaffirmed its FY25 net profit guidance of $34m which implies 2H net profit of $15.5m, and continues to expect its Australian loan receivables to exit FY25 at $850m, up 8% y/y.

The broker made moderate changes to forecasts, with FY25 net profit forecast up 1.6% and FY26 up 0.1%. Target price rises to $1.55 from $1.45 on time creep. Add rating maintained.

FORECAST
Morgans forecasts a full year FY25 dividend of 11.00 cents and EPS of 16.80 cents.
Morgans forecasts a full year FY26 dividend of 13.60 cents and EPS of 18.00 cents.

18/03/2025

1

Buy

$1.80

35.34%

Solvar announced its first asset-backed securitisation for $200m, made up of $60m of own capital from the existing warehouse and $140m from private credit funds, including MA Financial ((MAF)).

The company flagged $2.0m in pre-tax interest cost savings over three years, and Canaccord Genuity acknowledges this but has maintained current forecasts.

Target price of $1.8 and Buy rating maintained.

FORECAST
Canaccord Genuity forecasts a full year FY25 dividend of 12.00 cents and EPS of 16.60 cents.
Canaccord Genuity forecasts a full year FY26 dividend of 13.30 cents and EPS of 18.50 cents.