Ann: PGL Trading Update 3Q23, page-8

Hi
I would think:

• Missed IPO forecasts
• Fears about upcomming bad debts that come with a recession and unsecured lending to uncrediwothy borrowers
• Lack of interest of institutional shareholders in that type of lending
• Have not achieved constant growth at the NPAT level (ie went backwards in the first half of FY23) as opposed to a company like PLT which seems to be constantly improving at that level each result

My view is that PGL is significantly undervalued at this time, however they have a lot of work to do to restore the trust of the market and interest rates do also need to stabilise before value can be restored. I think the HY23 result has meant a lot of people have lost confidence (given the share price). I would say there is better value elsewhere given the significant risks of this type of lending in this environment.