Wages and Salaries Data for FY25 Bode Well for Financial and Industrial Sectors

This report is an updated version of the report published on 21 August 2025 at 12:49 PM AEST

Company Overview

Company Overview: Credit Corp Group Limited (ASX: CCP) is an Australian debt purchasing, collection, and consumer lending company with operations in Australia, the USA, and New Zealand. Established over 25 years ago, Credit Corp is dedicated to offering sustainable financial solutions, such as flexible repayment plans, to help improve customers' financial well-being. Alliance Aviation Services Limited (ASX: AQZ) is an Australia-based company, which is a provider of contract, charter and allied aviation and maintenance services. It also provides specialized aviation services to airlines and clients, including aircraft wet leasing, dry leasing, airport management, aircraft trading, parts sales, engine leasing and engineering services.  Kalkine’s Sector Report covers the Investment Summary, Sector Overview & Supporting Catalysts, Data Insights & Analysis, Financial Metrics, Financial Commentary, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on selected stocks.

Investment Summary

Sector Overview and Supporting Drivers

Australia’s Financial sector is one of the largest contributors to the national economy, encompassing banking, insurance, wealth management, and superannuation. The sector benefits from the country’s compulsory superannuation system, which generates steady capital inflows and underpins investment markets. Major banks dominate lending, mortgage finance, and business credit, while insurers and asset managers provide stability and long-term growth opportunities. Key drivers include interest rate dynamics, credit demand, digital transformation, and regional trade linkages. However, the sector faces challenges from regulatory pressures, rising competition from fintechs, and evolving customer expectations in a technology-driven financial landscape.

Australia’s Industrial sector is a diverse engine of economic activity, spanning construction, manufacturing, transport, logistics, and engineering services. It plays a critical role in supporting infrastructure development, resource projects, and national defence. Strong population growth and urbanisation drive demand for housing, transport networks, and utilities, while government investment in infrastructure and the energy transition provides long-term momentum. Technological adoption, including automation and AI, is enhancing efficiency and competitiveness across industries. Despite opportunities, the sector faces challenges from rising input costs, labour shortages, and global supply chain risks, making resilience and innovation key to sustaining growth.

Sector Catalysts

Index Performance

Investment theme and stocks under discussion (CCP, AQZ)

After understanding the sectors, let us now look at two companies from the Financial and Industrial sectors listed on the ASX. The price potential of the companies under discussion have been analysed based on Price/Book Value and EV/Sales based relative valuation methods, respectively.

1. ASX: CCP (Credit Corp Group Limited)

(Recommendation: ‘Speculative Buy’ at AUD 16.07; Potential Upside: Low Double-Digit; MCap: AUD 1.09bn)

CCP is an Australian debt purchasing, collection, and consumer lending company with operations in Australia, the USA, and New Zealand. Established over 25 years ago, Credit Corp is dedicated to offering sustainable financial solutions, such as flexible repayment plans, to help improve customers' financial well-being.

The stock has witnessed a growth of ~7.83% in last one month, and over the past six months, the stock is up by 2.94%. The stock has a 52-week low and 52-week high of AUD 11.275 and AUD 18.510, respectively and is currently trading above the mid-point of its 52-week high and low. CCP was last covered in a report dated ‘5 August 2025’.

2. ASX: AQZ (Alliance Aviation Services Limited)

(Recommendation: ‘Hold’ at AUD 2.530; Potential Upside: Low Double-Digit; MCap: AUD 415.43mn)

AQZ is an Australia-based company, which is a provider of contract, charter and allied aviation and maintenance services. It also provides specialized aviation services to airlines and clients, including aircraft wet leasing, dry leasing, airport management, aircraft trading, parts sales, engine leasing and engineering services.

The stock has corrected ~4.72% in last one month, and over the past six months, it has declined by ~3.21%. The stock has a 52-week low and 52-week high of AUD 2.120 and AUD 3.100, respectively and is currently trading near the 52-week high-low average. AQZ was last covered in a report dated ‘17 July 2025’.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 21 August 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.