PIONEER CREDIT LIMITED (PNC)
Share Price Analysis and Chart

28/08/2025

1

Buy

$0.80

33.33%

Pioneer Credit reported FY25 cash collection up 1% to $142m, which missed Shaw and Partners' forecast and was attributed to the timing of debt portfolio purchases, with considerable purchases made in 4Q25 which left little time for collections.

The FY25 cost-to-serve ratio at 32% versus forecast at 35% was a positive surprise.

This offers some confidence to the analyst around FY26 collections, and management guided to FY26 net profit after tax of $18m, a rise of 80% on the just released FY25 result, as well as positive free cash flow for the current fiscal year.

Shaw and Partners expects procurement of $95m in debt portfolios in FY26 versus $69m in FY25.

Buy, High Risk. Target unchanged at 80c.

FORECAST
Shaw and Partners forecasts a full year FY26 dividend of 0.00 cents and EPS of 10.20 cents.
Shaw and Partners forecasts a full year FY27 dividend of 0.00 cents and EPS of 11.10 cents.

13/08/2025

1

Initiation of coverage with Overweight

$0.82

36.67%

Wilsons initiates coverage of Pioneer Credit with an Overweight rating and 82c target price.

The debt collection sector has largely transitioned to a duopoly, with Credit Corp ((CCP)) the number one player and Pioneer number two, due to reduced purchased debt portfolio (PDP) volumes during covid and increased compliance.

With less competition, the analyst envisages Pioneer's operating leverage will improve because of its better funding structure and efficiency in its operations.

Wilsons believes Pioneer Credit is an attractive "turnaround" play for investors.

FORECAST
Wilsons forecasts a full year FY26 dividend of 0.00 cents and EPS of 95.30 cents.