HMY-Harmoney

[lorraina]

Based on our trading results year-to-date, we reaffirm our guidance for FY26 Cash NPAT of $12
million, which represents a 111% increase on our FY25 result.
Growth remains strong across both markets. In our first quarter of FY26, Australian originations were
up 15%, and New Zealand originations surged by over 50%, on the same quarter of the prior year, and
this momentum has continued into the second quarter, as the market has fully embraced the speed
and ease of Stellare® 2.0

[Hectorplains]

Can't help wonder what the share price might be if this was still NZX listed...

[lorraina]

A stunner.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-03058602-2A1654594&v=undefined

[Cod]

Excellent update -- Cash NPAT: $13m (previous guidance $12m) FY26
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[lorraina]

20 February 202 6
A I - powered  money - making machine
Harmoney  is  a  warehouse  funded  personal
The  forecasted growth   / improvements    arrived sooner - than - expected , leading  to
lender,  distinct  from    traditional  non   - bank
exceptional   1H26 result s where Cash NPAT and Cash ROE   reached record levels   .
lenders  by  its  100%  to  consumer,    digital
We updated our forecasts and upgraded our   valuation    to $ 2. 90 .
distribution  model.  Harmoney's  current
portfolio    of  credit  products    include s
Key Takeaways
unsecured and secured personal loans up to
$ 10 0,000,  for  purposes    including    debt
Monumental    performance:   1H26  Cash  NPAT  of  $6.1m  was  ahead  of  our
consolidat   ion ,  business    loans , wedding
expectations and    surpassed the FY   25 Cash NPAT of $5.7m   . This led to an exceptional
loans,  medical  expenses   , holiday  loans  and
education loans.
1H26 cash ROE of 31%.   Loan s grew +9% to   $857m as  the  Australian book   sustained
https://www.harmoney.com.au/
double - digit growth (+17%)   while the NZ book rebounded in its originations (+49%).
The NIM improvement also came sooner   - than - expected and outweighed the slight
Key Data
increase  in  credit  losses.  The  company  is  now  reaping  the  benefits  of  its  new
Valuation (A$)   2. 90
platform (Stellare 2.0)   and is poised to generate exceptional cash returns   as long as
Current Price (A$)   0. 8 6
they  sustain exceptional  margins,    manage  their  costs  and  losses,  and    maintain
Market Cap (A$   m )   89 . 5
quality service    that attract s new and returning customers   .
30 Day Average Turnover   (A$)   $ 63,315
Improved  outlook  and  guidance:   FY26  Cash  NPAT  guidance  was  again  increased
Trim Capital f orecasts
from $12m to $13m, broadly in   - line with our prior forecast of $12.9m. More growth
is expected in FY26   - 27  from implementation of Agentic AI capabilities, introduction
FY Year End   25A 26E 27E 28E
of a mobile app, development of new products (revolving credit line), and pursuit
Cash NPAT (m)   5.7 13.3 19.5 24.3
EPS Cash (c)   5.5 12.9 19.4 24.1
of finance partnerships (auto marketplaces).
EPS gwth (%)   736   133   51   24 
Valuation & Forecasts
PE adj (x)   15.6 6.7 4.4 3.6
DPS (c)   0.0 0.0 0.0 0.0
Div yield (%)   – – – –
V aluation suggests    2 3 7 %  upside   : Our  primary  valuation  method    is  a general
Cash ROE (%)   16.0   35.0   43.8   46.6 
residual  income  model   and  produce s a valuation  of    $ 2. 90 ,  up by  + 6.5% from  the
PB (x)   2.6 2.1 1.8 1.5
prior  $2 . 7 2 due to  our  forecast revisions   . Our diluted cash EPS changes  are FY26:
12 - Month Share Price   Performance
+ 2 %, FY27: + 2 % , FY28: + 4 % .
Investment Thesis
1.20
1.20
1.00
1.00
0.80
0.80
Peer leading Risk Adjusted Income (RAI)   : Automatically generated, personalised
0.60
0.60
risk - adjusted interest rates enable a peer   - leading margins and    yield. We highlight
0.40
0.40
this as a pivotal driver of forecast   ed profitability   and growth   .
0.20
0.20
Direct  to  consumer    approach   creates  annuity  income  streams   : Harmoney   's self -
0.00
0.00
service, automated platform   creates recurring revenue streams once a customer    i s
acquired, with near zero acquisition costs for returning customers   .
Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Source: LSEG Data & Analytics Catalysts and Risks
Glen Wellham , Senior Analyst
Innovation and rollout of new p   roduct s: Having fully   implemented    Stellare 2.   0, the
glen.w ellham @trimcapital.com.au
company  is  now  transitioning  to    product  innovation    and  further  platform
improvements    that should drive   loan growth   ,  scale, and overall profits.
Mark Tomlins   ,  Senior  Analyst
mark.tomlins@trimcapital.com.au
Risk to the Investment Thesis:    Being a finance company, Harmoney has a range of
risks  applicable  including  macroeconomic  conditions,  liquidity  and  funding  risks,
credit risk, fraud, cybersecurity, asset   - liability mismatch and compliance risks.
This research report and any access to it, is intended only for wholesale clients within the meaning of the Corporations Act    2001 of Australia.
The company covered in this report is currently or may in the future be a research client of Trim Cap Pty Ltd (AR 1276369, AB   N 87643977351) a Corporate Authorised Representative of