flatexDEGIRO AG
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 (Initial Coverage)
Empfehlung: BUY
seit: 07.12.2015
Kursziel: EUR 26.85
Letzte Ratingänderung: –
Analyst: Felix Gode, CFA

• With the acquisition of XCOM AG, including its wholly-owned subsidiary
biw Bank AG, the FinTech Group AG has significantly expanded its business
model and can now benefit at various different levels from the strong
growth in the FinTech market. ViTrade AG and flatex AG provide established
access to end customers (B2C) and the full-service banks biw Bank AG and
XCOM AG have a strong IT capability in B2B services to the financial
services industry.

• Future growth at the company will receive equal support from all sectors.
B2C business at flatex should increase its “share of wallet” through the
provision of additional services. flatex will also grow through acquiring a
few thousand new customers per month due to improved marketing. biw Bank AG
is one of the leading enablers in the German fintech sector thanks to its
white label banking solutions. XCOM is acquiring customers in both the
traditional banking and the financial services sectors and is contributing
innovative products to the Group such as ‘kesh’ payment solutions. In
addition to organic growth, management is also constantly on the lookout
for interesting acquisitions, which would have a synergistic effect on the
Group.

• Due to the acquisition of XCOM AG and, thus, biw Bank AG, the sale of the
Aktionärsbank AG is currently going ahead. This will not only simplify and
focus the existing structure but will also have a significant impact on
earnings. Aktionärsbank only started operating in late 2013 and is
currently contributing significant losses. The sale should improve results
significantly starting in 2016. Beyond Aktionärsbank, significant cost
synergies across the entire group will result from the XCOM acquisition,
which will gradually make a significant improvement to profitability.

• Not least, in FY 2015 FinTech Group AG benefited from a co-operation with
Commerzbank AG, in which CFD market making was outsourced to the latter. As
part of the process, FinTech AG received a one-off lump sum in the low
two-digit millions and will receive a share of profits over future years.

• FinTech Group AG will therefore see a significant improvement in net
sales (net interest income + net commission income + trading profit) and in
EBITDA as soon as FY2015 due to the takeover of XCOM AG, as already
illustrated in HY1 2015. Semi-annual EBITDA was €11.7 million. After net
sales of €24.6 million in FY 2014, we forecast €84.23 million for the whole
of 2015.

• Currently the customer deposits at biw Bank AG of more than €1 billion
remain completely unused. Starting in 2016, the Executive Board is planning
to set up a technology-based consumer lending department (comparable to the
listed fintech company Ferratum). Even if regulatory limits prevent all
customer deposits from being used for this business, it is realistic to
expect interest income of around 1-2% on the entire deposits.

• In summary, the FinTech Group AG in its new form, including the synergies
from the XCOM acquisition, has high growth and earnings potential which
should be able to be gradually increased over future years due to its
excellent positioning in both the B2C and B2B sectors, due to its
technological leadership and, not least, the very high deposit levels at
biw Bank AG. A significant increase in profitability should be seen as
early as 2015, with further significant potential for increases over future
years.

• Using a residual income model and a peer group model, we have calculat-ed
an average fair value of €26.85 per FinTech Group share. Based on the
current price level, the share will have a PE of 14 for 2017. Based on the
favourable valuation and the positive outlook for the company, we are
rat-ing FinTech Group AG as a BUY.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/13445.pdf

Kontakt für Rückfragen
Jörg Grunwald
Vorstand
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
+++++++++++++++

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


Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.
Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung
oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.