Original-Research: FinTech Group AG (von GBC AG): BUY

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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 (Anno)

Empfehlung: BUY

seit: 24.05.2017

Kursziel: EUR 28.00

Letzte Ratingänderung: -

Analyst: Felix Gode, CFA

* FinTech Group AG can look back on very successful business development in

FY 2016, a year in which the measures introduced in the past two years

increasingly materialised, resulting in rising revenues and improved

results. Sales revenues were up to EUR 95.02 million from 2015, representing

a sizeable increase of 26.7%. A key driver was the considerable increase in

the number of customers. Customers increased to 212,040 in 2016, an

increase of 20.1%. A significant portion of this growth was achieved by

flatex. The broker was also able to successfully continue with its

expansion in 2016, with a larger product portfolio and a regional expansion

being also key contributors.

* In terms of achievements, FinTech Group AG also managed to significantly

increase its EBITDA in 2016. The EBITDA for 2016 was EUR 30.62 million, an

in-crease of 55.1% from the previous year. Most notably, the Transaction

Pro-cessing & White-Label-Banking (TP&WLB) segment contributed

significantly to a positive earnings trend. After a total of EUR 8.39 million

was generated in this sector in the previous year, 2016 values were at EUR

28.33 million. The main reason for this very positive development, in

addition to the obvious revenue growth, is that results in the previous

year were still impacted by extensive re-structuring. With figures adjusted

to take into account the one-time impact of the previous year, the increase

in EBITDA accounted for 13.8%.

* We are expecting a further increase in sales revenues of EUR 108 million in

FY 2017. This means that we are expecting to slightly exceed the guidance

issued by the company. Revenue growth drivers should include, above all, a

continued increase in customer and transaction numbers, which will in turn

be addressed by expanded product offerings. We are also expecting further

growth in the B2B business, after having already acquired two new customers

in the banking outsourcing field at the end of 2016, which will lead to

anticipated further cooperation. We are also expecting equally positive

results from our interest earnings, which should result from making more

active use of customer deposits.

* In terms of costs, in 2017, but especially in 2018, downsizing the

corporate structure from 5 to 2 of the most crucial subsidiaries will make

a notable difference. This should reduce material costs by up to seven

digits. Last but not least, we continue to expect an unchanged EBITDA value

of EUR 35.00 million, which also means that we will be slightly above the

executive board's guidance report, which estimates an amount of EUR 32 to 34

million.

* On the whole, the numbers for FY 2016 were very satisfactory and the

prospects for 2017 are positive. Numerous measures and developments should

lead to further improvements. In this respect, we would like to con-firm

our positive assessment of FinTech Group AG shares, and as a part of our

residual income model, we have appraised the value of each share at EUR

28.00. Compared to our previous target value of EUR 27.00, this represents an

increase. The rating, based on the high rate potential of over 50%, remains

unchanged at BUY.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/15247.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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