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: DE000FTG1111

Anlass der Studie: Research Note
Empfehlung: BUY
Kursziel: 28.00 EUR
Letzte Ratingänderung: –
Analyst: Cosmin Filker

Even if the revenues of FinTech Group AG of EUR 49.56 million (previous
year: EUR 48.35 million) at first glance only look like slow momentum, the
company nevertheless has a clear upward trend in the most important income
items. Specifically, there was a significant increase of EUR 6.19 million
in commission income to EUR 36.71 million and interest income rose EUR 2.37
million to reach EUR 4.26 million (previous year: EUR 1.89 million). IT
services were affected by a fall in revenue of EUR 2.66 million to EUR 7.16
million due to the loss of a major customer. However, in the first six
months of the year, three new major B2B mandates were acquired, which will
provide significant revenue and income contributions from the second half
of 2017 and so will more than compensate for the loss of the customer.

The basis for the still very satisfactory performance of the commission
income, as the largest income item of FinTech Group AG, is the greatly
increased number of customers and, building on this, the significantly
increased number of transactions performed. For instance, the number of
customers as at 30/06/2017 was further increased to 234,874 (previous year:
193,773) and the number of transactions performed was significantly higher
than the previous year’s level at 5.51 million (+10.6%).

Based on the constant development of revenue, FinTech Group AG has reported
a slight drop in EBITDA to EUR 13.00 million (previous year: EUR 13.78
million). The high level of other operating income from the previous year
should be mentioned once again here, which had a vastly positive influence
on the result. Adjusted for the effects of the reversal of provisions, the
company would have had an increase in profit from approx. EUR 12.3 million
to EUR 13.00 million. In our opinion, the level of profitability that has
now been reached is a good indication of the high scalability of the
FinTech Group AG business model, which, given the background of rising
revenues, is expected to be accompanied by disproportionately high growth.

With the publication of the 2017 semi-annual report, FinTech Group AG has
confirmed the forecasts issued at the beginning of the 2017 financial year.
An EBITDA in the range of EUR 32-34 million and group-wide profit of EUR 16
million are both still expected for the year as a whole. The semi-annual
figures for 2017 are fully in line with the expected developments for the
year as a whole. The number of customers reached almost 235,000 as at the
reporting date of 30/06/17 and thus forms a comprehensive basis for a
continuous increase in the number of transactions. In view of the sustained
positive performance of capital markets in the second half of the year, the
growth strategy implemented for other European countries (see flatex
Austria) and the continuing consolidation in the online brokers sector, the
momentum of the transaction figures is expected to be expanded further.

Similarly, in the course of the planned expansion of the credit business,
the interest income is also expected to be increased. With an average
interest rate of approx. 4.0%, the largely secured loan book was increased
to about EUR 180 million at the reporting date of 30.06.2017. The aim is to
increase the loan book to up to EUR 250 million by the end of the 2017
financial year and to achieve a further increase in net interest.

Also in the B2B segment, the company’s objective is to add three to five
new mandates every year. In the first six months of 2017, three new large
B2B mandates have already been added, meaning the annual objective has
almost been reached. However, these will not provide a significant revenue
and profit contribution until the second half of 2017, and will thus result
in disproportionately high growth in this area. Against this background, we
are still acting on the assumption that FinTech Group AG will generate
revenue of EUR 108 million and therefore expect that the upper guidance
margin will be exceeded.

Due to our unchanged revenue and earnings outlook for the coming two
financial years, we also maintain our fair company value of EUR 28.00 per
share as part of a residual income model. Based on the current share price
of EUR 19.00, there is a high growth potential per share of over 45%. This
therefore once again results in a BUY rating.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/15683.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,6a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
http://www.gbc-ag.de/de/Offenlegung.htm
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