Ann: Shareholders to vote on Humm Consumer Finance transaction, page-70

Humm Group (HUM.ASX) is now officially the most profitable BNPL company in Australia and possibly the world. Management has given guidance of 1H cash NPAT of $43m, up 25% on the prior period. 2H of year will see increased marketing costs and investment into the entering of two new international markets. We estimate that HUM will achieve NPAT of approximately $70m for FY21 and is trading on a PE of 9x. Unfortunately, HUM is extremely profitable and investors valuing BNPL companies are ascribing higher valuations to their loss-making competitors. Eventually that bizarre paradigm will shift and the stock will re-rate to our estimated valuation of $2.00+.