Original-Research: FinTech Group AG (von GBC AG): BUY

Original-Research: FinTech Group AG - von GBC AG

Einstufung von GBC AG zu FinTech Group AG

Unternehmen: FinTech Group AG

ISIN: DE0005249601

Anlass der Studie: Research Report (Anno)

Empfehlung: BUY

seit: 12.07.2016

Kursziel: EUR 28.50

Letzte Ratingänderung: -

Analyst: Felix Gode, CFA

* For FinTech Group AG, FY 2015 was very much characterised by

transfor-mation into one of the leading companies for innovative financial

technologies in Germany. With the acquisition of XCOM AG on 31.03.2015, the

company substantially expanded its value chain, for which reason it can now

offer a broad range of banking solutions for private customers and in the

B2B sphere, especially with regard to up-to-date fintech solutions.

Furthermore, not only does the company have a strong customer base with

access to more than 200,000 private customers and numerous B2B customers,

but it also combines technological expertise in the company to meet the

requirements associated with changes in the banking sector.

* The development of figures for 2015 was characterised mainly by the

acquisi-tion of XCOM AG, including the full bank subsidiary biw Bank AG.

However, the effects of adjusting the company structure and the

streamlining of the operational setup with the successful sale of the

loss-making AKTIONÄRSBANK or the out-licensing of CFD market making to

Commerzbank were also noticeable. Sales revenues in FY 2015 were EUR75.19

million, which was substantially higher than in the previous year, when

XCOM was not yet a member of the group.

* The result also improved significantly at the same time. EBITDA was

EUR19.74 million and the EBITDA margin was 26.3%. Here, it must be noted that

EBITDA was strongly affected by one-off events in the course of the

acquisition, restructuring etc., which on balance caused a reduction of

EUR7.18 million. Adjusted to take account of these effects, EBITDA would be

EUR26.90 million and the EBITDA margin would be 40.1%.

* In our opinion, the high core profitability demonstrates the trend in

profitability of the FinTech Group AG for the years ahead. While we expect

sales revenues for FY 2016 to increase to EUR84.71 million, we also

anticipate EBITDA amounting to EUR32.46 million, which is in the middle of

the range given by the management. With the discontinuation of the charges

from the relinquished business, post-tax earnings in 2016 should be

considerably better and allow an EPS of EUR1.41.

* A number of factors are expected to drive growth in the years ahead. In

B2C business, it is primarily the expansion of the product range (e.g.

flatex flex credit, structured products with their own label etc.) as well

as the regional expansion that produces growth in the number of customers

and therefore also deposits and revenue from commission. In B2B business,

the FinTech Group AG benefits amongst other things from the growing numbers

of customers in the white label banking sphere, in which a large number of

new customers have also been acquired this year. Furthermore, the company

can now use the high level of customer deposits much more efficiently,

thereby achieving an additional increase in profitability.

* Overall, we believe that FinTech Group AG is very much on track to expand

its position as one of the leading fintech companies on the German and

European market. We expect to see to see double-digit growth in revenue and

earnings in the years ahead. With this in mind, we are repeating our

purchase recommendation and increasing the target stock price from EUR26.85

to EUR28.50.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/14053.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

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