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 Note
Empfehlung: BUY
Kursziel: 29.50 EUR
Kursziel auf Sicht von: 31/12/2020
Letzte Ratingänderung:
Analyst: Cosmin Filker, Matthias Greiffenberger

FinLab AG’s business model as an investment company that focuses on Fintech
business models means that an analysis of turnover and earnings performance
according to conventional key figures does not adequately represent the
business situation. The most important message to take from an examination
of revenue and EBIT is the fact that FinLab AG is ‘self-sustaining’, and
that personnel and material costs are therefore covered.

As in previous financial years, FinLab AG achieved a positive EBIT result,
posting a result of EUR 1.16 million this year (previous year: EUR 1.02
million). Consequently, the company remains in the comfortable position of
being able to keep the Fintech investments in the portfolio for as long as
possible, thereby generating most of the potential increase in value. As
such, it is not necessary to perform any exit transactions to compensate
for possible deficits.

The basis for this stable EBIT performance is provided by revenue, which is
made up of income from services provided to subsidiaries and holdings
(management, marketing, accounting etc.) not to mention investment income.
Investment income consists primarily of dividend distributions from HELIAD
Equity Partners GmbH & Co. KGaA, in which a stake of 45.3% is held, as well
as shares in profit generated by portfolio companies. Overall, total income
increased to EUR 2.91 million (previous year: EUR 2.79 million), which, on
account of the fact that overhead costs remained consistent, resulted in
the reported EBIT increase.

As at 30/06/2019, FinLab AG had equity of EUR 106.00 million according to
its IFRS balance sheet. This is based on the financial investments’
carrying value of EUR 94.89 million, where the 45.3% investment in Heliad
Equity Partners GmbH & Co. KGaA is currently the largest individual
investment at EUR 16.15 million. The valuation of the Heliad investment
declined significantly, particularly in the last two financial years, as a
result of the need for amortisation of Heliad portfolio companies. The
Heliad NAV, which was last updated on 31/03/2019, is EUR 6.76 per share
(31/12/2018: EUR6.20 per share). Relative to this NAV, the hidden reserves
of the HELIAD investment amount to EUR 13.68 million.

In addition, the IFRS valuation of the Fintech portfolio companies was EUR
60.31 million as at 30/06/19 (31/12/18: EUR 52.75 million). This increase
is partly due to the investment in ONPEX Holding GmbH, which was completed
in February 2019, but also to the positive performance of the existing
Fintech portfolio companies. We see the overall NAV of the Fintech
portfolio companies at EUR 94.81 million, and therefore EUR 34.5 million
above the balance-sheet valuation.

In the third stage of the NAV calculation, we took into account in the
liquid assets (including securities) amounting to EUR 8.22 million the
revenue streams from traditional asset management business that are
expected and predictable for the second half of 2019, i.e. the agreed
management fees as well as dividend income (including income from the new
fund with Block.one) minus the holding costs.

At EUR 29.5, the current NAV/share of FinLab AG is slightly above the value
calculated thus far of EUR 28.87. The fair values of the Fintech
investments and the HELIAD NAV show slight increases compared to our
previous study. Based on the current share price, FinLab AG clearly retains
its BUY rating.

Important valuation note
At present, there is speculation about the sale of the online broker Flatex
AG (formerly trading under FinTech Group AG), the largest company in the
HELIAD portfolio. In July 2019, the company announced the decision to work
with the consulting firm Lazard to examine possible strategic options
regarding its future course. Selling the company was mentioned as a
possible option. Even though further information is not currently available
on the market, there is speculation in the media and on various financial
portals that a sale in excess of the price of EUR 30 per share is a likely
course of action. A sale of Flatex AG at this price would have a positive
impact on business performance and, as a resultant, on the valuation of
FinLab AG. According to our calculations, the positive impact would amount
to EUR 20.81 million or EUR 3.97 per share.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/18959.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 (Time) completion: 02/09/19 (3:07 pm)
Date (Time) first distribution: 03/09/18 (10:00 am)

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