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Original-Research: FinLab AG (von GBC AG): BUY

Original-Research: FinLab AG – von GBC AG

Einstufung von GBC AG zu FinLab AG

Unternehmen: FinLab AG
ISIN: DE0001218063

Anlass der Studie: Research Report (Anno)
Empfehlung: BUY
Kursziel: 28.85 EUR
Kursziel auf Sicht von: 31.12.2020
Letzte Ratingänderung:
Analyst: Cosmin Filker, Matthias Greiffenberger

– Important operational developments achieved in the Fintech portfolio
– Deposit Solutions Holdings advances to Unicorn Status with a Valuation of
EUR1.0 Billion
– High upside potential

FinLab AG had a positive news flow also in the 2019 financial year with its
Fintech investments. The ‘flagship investment’ Deposit Solutions once again
proved to be an important driver for the company’s development. In addition
to further developing its operations, the company concluded a new financing
round in September 2019 with an investment by Deutsche Bank. The operator
of well-known platforms such as Savedo and Zinspilot was valued at a
shareholder value of EUR 1.0 billion, which led to significant revaluations
for FinLab AG from the previously calculated value of around EUR500
million.

There were also further major developments in the other portfolio
companies. nextmarkets GmbH released a new app generation, AUTHADA’s
identification solution is now used by comdirect bank AG for both deposit
and current account openings, Kapilendo took over a banking platform and
iconic completed a seven-figure financing round.

With the valuation increase of the Fintech portfolio, especially Deposit
Solutions, FinLab AG’s financial result improved significantly to EUR38.08
million (previous year EUR16.29 million). It is particularly worth noting
that FinLab AG’s recurring management income once again kept its operating
costs well covered. This means that the portfolio strategy does not come
with a cost pressure or the pressure of making exits.

The very solid balance sheet ratios of FinLab AG should also be mentioned,
given the current Covid-19 pandemic. The company’s equity of EUR142.77
million and equity ratio of 97.9% give it a high degree of flexibility with
regard to possible financing options. In addition, the company’s cash and
cash equivalents of approx. EUR11 million is sufficient to cover its
operating costs for the next financial years.

Although the effects of Covid-19, which are difficult to assess, will also
influence the development of the portfolio companies, they also present
disproportionately high growth opportunities after the crisis due to the
fact that their business models are based on innovation and digitalisation.
Deposit Solutions, for example, could benefit from high investor interest
due to the amount of available liquidity, especially as investments can be
made from home computers. The nextmarkets trading platform could also
benefit from the current high volatility on the market. Vaultoro is showing
its strength in peer-to-peer trading and AUTHADA could benefit from
increased demand for e-identification solutions.

We carried out a NAV valuation of FinLab AG. We determined a price of
EUR28.85 as the fair value per share (previously: EUR29.50). The reduction
is entirely the result of our more cautious approach to the valuation of
the Fintech portfolio, for which we currently do not assume any hidden
reserves and therefore use the balance sheet valuation. Based on the
current share price, the FinLab share is still a clear BUY.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/20553.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 § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung
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Date and time of completion (german version): 06/04/2020 (5:40 pm)
Date and time of first distribution (german version): 07/04/2020 (10:30 am)
Date and time of completion (english version): 17/04/2020 (8:00 am)
Date and time of first distribution (english version): 17/04/2020 (11:00 am)

——————-übermittelt durch die EQS Group AG.——————-


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