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 Note
Empfehlung: BUY
seit: 05.10.2016
Kursziel: EUR 29.00
Letzte Ratingänderung: –
Analyst: Felix Gode, CFA

With regard to operating performance, in our opinion FinTech Group AG is
fully on schedule to achieve its annual targets after H1 2016. For FY 2016,
the company forecast an EBITDA range of €30-€35 million. After H1 2016, 46%
of EBITDA, as measured by the lower end of the forecast range, had already
been achieved.

Moreover, it can be assumed that some of the new partnerships entered into
in recent months will not be reflected until H2 2016 and are only now
starting to be recognised in the income statement. The new “flatex
flex-Kredit” is one example of this. It will make a significant
contribution to the improved use of customer deposits, which stood at
around €1 billion as at 30 June 2016. The “flatex flex-Kredit” product has
been very well received since its introduction. The structured products
launched with Morgan Stanley will also only make a contribution to profit
in H2 2016. Last but not least, the partnership with ZINSPILOT should be
mentioned, which will also lead to a more efficient use of deposits.

The recently announced cooperation with the South Korean company Finotek
could also provide additional potential. A joint venture with Finotek has
been established with the aim of offering FinTech Group AG’s smartphone
wallet solution “kesh” in South Korea as a white label solution. While
countless wallet solutions are crowding the market in Germany, the
cooperation with Finotek opens up good market entry opportunities in an
equally attractive market, which, however, should be easier to tap into
with the partnership. In addition, it must be emphasised the cooperation
with FinTech Group also makes it possible to access Finotek’s innovative
technology portfolio in mobile banking. One example is a solution that
allows identity checks without media breaks and in real time.

Given this background, we assume that H2 2016 will once again be
significantly better than H1 2016 and we have adjusted our revenue
expectations upwards for FY 2016. We now assume that revenue of €100.00
million can be achieved. We have also adjusted our expectations for the
subsequent years 2017 and 2018.

In the medium term, the recently announced cooperations with Rocket
Internet are also expected to have a positive impact. Both companies plan
to establish a European digital bank, with each company bringing its own
expertise to the project. In our opinion, this powerful cooperation has
very high potential and could have a further positive impact on forecasts
for the coming years.

In line with the increased revenue forecast, we have also raised our EBITDA
expectation for the current year and the next few years. For 2016, we now
expect that the middle of the forecast range will be achieved, with €33.00
million now being assumed. We have also adjusted our forecasts upwards for
the years 2016 and 2017. We continue to assume a medium-term target of
around 40% for the EBITDA margin.

The total discounted residual income sums up to €487.32 million. Due to a
number of outstanding shares of 16.811 million the resulting fair value per
share is €29.00. Our previous target price of €28.50 therefore is adjusted
upwards. According to a current share price of €16.00 the resulting upside
potential amounts to more than 80%. Therefore the rating is clearly BUY.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/14335.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 §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,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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