Advanced Blockchain AG
Original-Research: Advanced Blockchain AG (von GBC AG): BUY

Original-Research: Advanced Blockchain AG – von GBC AG

Einstufung von GBC AG zu Advanced Blockchain AG

Unternehmen: Advanced Blockchain AG
ISIN: DE000A0M93V6

Anlass der Studie: Research Report (Initial Valuation)
Empfehlung: BUY
Kursziel: 23.32 EUR
Kursziel auf Sicht von: 31/12/2022
Letzte Ratingänderung: –
Analyst: Julien Desrosiers, Matthias Greiffenberger, Felix Haugg

Easy access to DeFi, Crypto & Web 3.0. Significant upside potential due to
the high-growth portfolio. Successful partial divestments and financing
rounds confirm the Group’s investment approach.

With this research update we provide a preliminary assessment. The full
Annual Report 2021 is expected to be published soon. Subsequently, we will
update the valuation again and, if possible, include further projects in
the valuation.

Advanced Blockchain AG invests and participates through three areas: (1)
Investments, (2) Holdings and (3) Incubations.

In the area of holdings and incubations, Advanced Blockchain AG works
closely with the companies. Here, the company tries not to spread the
investments broadly, but to focus specifically on a smaller number of
investments. The higher focus is intended to achieve a higher probability
of success. Advanced Blockchain AG not only provides support here in the
form of financial resources, but also helps to successfully implement
blockchain processes. Here, companies benefit from the extensive expertise
of the Advanced Blockchain team and their numerous industry contacts. As
spin-offs are also frequently supported, the Advanced Blockchain Group is
also associated with established companies with a high profile. In addition
to external spin-offs, Advanced Blockchain Group also supports its own
spin-off projects and subsidiaries in the blockchain and decentralization
industry. Through internal support and foundation, numerous processes can
be implemented in a more straightforward manner, while the aforementioned
advantages for the companies continue to exist.

Advanced Blockchain Group relies on extensive internal analysis for its
startups and investments. For example, the company has an investment and
research team of more than ten people who are constantly looking for new
projects. There is also a symbiotic relationship with numerous external
professional investors who can contribute feedback. Provided a potential
project has been identified and the technology behind it has been analyzed,
a meeting will be arranged with the founding team. The Advanced Blockchain
Group can provide extensive support, from providing technical resources,
launch support, audits, investor access, and access to its own research
group.

In addition, Advanced Blockchain Group acts as a venture capitalist through
its subsidiaries. In this area, investments are made not only in startups,
but in all types of companies that seek to use blockchain and
decentralization technology to develop solutions to widespread problems
faced by large, established companies.

Furthermore, Advanced Blockchain invests in blockchain technology companies
offering crypto tokens through its subsidiaries. Thus, consulting services
are partly paid in the form of tokens.

In the incubation space, we have currently identified the following
investments/shareholdings: Bribe, Quasar, Angular, Panoptic, Instrumental,
Pendulum and Warp.

We have examined the valuation approaches of the company with regard to the
individual items and consider them to be comprehensible. In the area of
incubations, valuations were made according to current financing rounds or
according to the last transaction. Furthermore, tokens for consulting and
software services were issued, which correspond to a valuation approach
according to the initial issue. In our opinion, the current fair value of
the incubations (after safety discounts) is around EUR 12 million.

There are 31 different positions in Investments: namely, Maverick,
Sentinel, Alluo, Myso, Etherscore, Polymer, Fractal, Neon Labs, Mekatek,
Fragcolor, Element Finance, Zcloak, Fei Protocol, Backd, Arweave, Obol,
Forest Park, Component, NEAR Protocol, Sigmadex, Composable, Permanent
Ventures, Manta, Light, Moxy, Polkadot, Talisman, SDGX, Contango, Ithil,
Peaq and Apricot.

The most popular may have been the great success of the Polkadot
investment. Thus, in 2017, the company invested for an average of well
below EUR 1 per token and most recently realized most of it. In the
meantime, the price stood at around EUR 47 and according to the management,
the sales were carried out near the highest price.

We have discussed the valuation methods of the investment portfolio with
the management and consider them to be comprehensible. In our opinion,
numerous investment projects are still in the early stages and still show
enormous potential for the future. We currently estimate the value of the
investment portfolio (after risk discounts) at around EUR 35 million.

In the area of holdings, we identified 12 holdings, namely: FinPro AG,
Nakamo.to, FinPro GmbH, Peaq GmbH, Stela Labs Ltd, Tracebloc, Cliso Ltd.,
Brain Network Ltd., Peaq Ltd, Incredulous Ltd., ADVANCED BLOCKCHAIN LABS
(DMCC) and ADVANCED BLOCKCHAIN LABS (FZCO).

We currently see Peaq as the main value driver of the Holdings portfolio
and estimate the portfolio to be worth EUR 43 million.

Many of the portfolio positions are still at the beginning and have a great
potential to develop dynamically. In addition, according to our assessment,
there are still unpublished portfolio positions, which can also have a
value-enhancing effect. According to the management, the annual holding
costs are just below EUR 2 million, which we deduct from our portfolio
valuation according to the NAV approach.

In total, we have calculated an enterprise value of around EUR 88 million
according to NAV. With 3.77 million shares outstanding, this corresponds to
a value per share of EUR 23.32. Against the background of the high upside
potential, we assign a BUY rating in our initial valuation.

Note: As soon as the 2021 Annual Report is available, we will expand this
Initial Valuation to the Initial Coverage Study with an updated valuation.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/23937.pdf

Kontakt für Rückfragen
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,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung
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Date and time of completion of this research: 28/04/2022 (10:10 am); German Version: 26/04/2022 (04:45 pm)
Date and time of first distribution: 28/04/2022 (11:30 am); German Version: 27/04/2022 (09:30 am)
Validity of the target price: until max. 31/12/2022

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


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