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 EUR30-EUR35 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 EUR1 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 EUR100.00

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 EUR33.00

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 EUR487.32 million. Due to a

number of outstanding shares of 16.811 million the resulting fair value per

share is EUR29.00. Our previous target price of EUR28.50 therefore is adjusted

upwards. According to a current share price of EUR16.00 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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