Heliad AG
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: 30.65 €
Letzte Ratingänderung:
Analyst: Cosmin Filker, Matthias Greiffenberger

Further expansion in the fintech investment portfolio; NAV climbs to EUR
20.83 per share; further valuation potential yet to come

In the past financial year 2017, FinLab AG once again benefited from an
increase in the valuation of its fintech investments, allowing it to
sustain its significant financial result of EUR 13.00 million (previous
year: EUR 11.77 million). This total includes the valuation income from
unlisted fintech investments. As in the previous year, a large proportion
of the financial result is attributable to the increase in value of the
Deposit Solutions investment. During a USD 20 million financing round, this
associated company was valued at double the level recorded at the end of
2016 (as a result of third-party investment).

In addition to the high financial result, the listed investment in HELIAD
Equity Partners, in which FinLab AG has a significant stake (45.2%), posted
very good growth. In 2017, the HELIAD share price of EUR 5.71 (31/12/2016)
climbed significantly to EUR 9.48 (31/12/2017), which meant that given its
virtually unchanged shareholding, FinLab AG recorded a total gain of EUR
16.55 million. Although this gain is not recognised in the financial
result, it is recognised as a result-neutral revaluation basis in equity
capital, which entails a corresponding increase in equity capital and thus
in the NAV.

The positive post-tax result of EUR 14.21 million, together with the
revaluation reserve of the Heliad investment (EUR 16.55 million) and the
capital increase undertaken in May 2017 (EUR 5.85 million: 450,000 new
shares at EUR 13.00 per share), made for a significant increase in equity
capital to EUR 103.92 million (31/12/16: EUR 67.14 million). The NAV per
share once again saw a significant increase to EUR 20.83 (31/12/16: EUR
14.79).

FinLab AG is special in that current income (service income, profit shares)
is sufficient to cover the ongoing costs, which renders FinLab’s business
virtually ‘self-sustaining’ without external financing. This can be seen
from the positive EBIT of EUR 1.46 million, which gives an indication of
the strong internal financing capability within FinLab AG – this is not
considered the norm for venture capital portfolio companies.

In the past financial year, FinLab AG has expanded its investment portfolio
with three further investments, acquiring initial stakes in FastBill GmbH,
Vaultoro Ltd. and ICONIQ Lab GmbH. At the same time, the Company has
successfully completed its entry into the cryptocurrency and blockchain
markets. In this regard, it recently announced the creation of a fund with
leading blockchain software EOS.IO. With a planned capitalisation of up to
USD 100 million, FinLab is expected to benefit from both management fees
and the fund’s performance. In addition, all key fintech investments
reached important milestones in 2017.

Based on the NAV valuation, we calculated a fair value of EUR 30.65 per
share for FinLab AG. This figure includes the hidden reserves of the HELIAD
investment as well as the higher valuations we have calculated for fintech
investments. Based on a share price of EUR 20.70, we are assigning a BUY
rating.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/16407.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.htm
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——————-übermittelt durch die EQS Group AG.——————-


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