McMillan Shakespeare Ltd

Perpetual Asset Management was consistently positive on McMillan Shakespeare. In August 2025 (~$19.63) it noted FY results ahead of expectations driven by strength in the novated leasing (GRS) segment, with volumes and yields holding up despite the March expiry of the FBT exemption on plug-in hybrids, as substitution into EVs and internal-combustion novated leases, contract wins, and growth in the newer Oly platform supported orders; it also cited the "Simply Stronger" efficiency program (including technology and AI investment), upgraded consensus FY26 earnings, an undemanding valuation versus peers, and an attractive fully-franked dividend yield. By May 2026 (~$18.60), after a 15.8% monthly return, Perpetual pointed to the federal budget providing regulatory clarity on the FBT EV exemption (unchanged for three years before a 2029 wind-back), a Middle East-conflict oil price spike acting as a catalyst for a step-change in EV purchases, and the structural tailwind of EVs' much higher novated-lease penetration (~50%) versus ICE vehicles (5-10%), concluding the novated leasing industry was entering a period of strong structural growth with McMillan Shakespeare well placed to capture it at an attractive 11-12x earnings multiple.