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 Comment
Empfehlung: BUY
Kursziel: EUR 27.00
Letzte Ratingänderung: -
Analyst: Felix Gode, CFA

Figures for 2016 in line with guidance - Expectations for 2017 raised after
positive Q1 17 - Target price of EUR27 and BUY rating confirmed
Today FinTech Group AG presented its figures for the 2016 financial year
just ended, with all key figures posting an increase on the previous
financial year. Revenues rose by 26.7% to EUR95.02 million and the EBITDA was
even up 55.2% on the previous year at EUR30.62 million. It should however be
noted that XCOM AG was only consolidated for nine months in the 2015
financial year but last year also included a significant one-time income
amount from out-licensing its CFD business. Therefore, significant organic
increases were also recorded for revenues and income in 2016. B2C and B2B
business both contributed to the positive development. Whereas the B2C
business was particularly impressive, with a significant increase in
customer numbers of around 20% to 212,040, important new customers were
also acquired during 2016 in B2B business. This was also reflected in the
fact that customer assets under management almost doubled to EUR10.9 billion.

With EBITDA of EUR30.62 million achieved, FinTech Group AG was able to meet
the guidance set at EUR30-35 million at the start of the year and therefore
to achieve the published forecasts for the second year in succession. The
positive development was even clearer in the profit for the year assigned
to the shareholders. At EUR8.42 million, this was clearly in positive
territory after recording a loss of EUR1.75 million in the previous year. It
should be noted that 2016 saw further significant charges related to the
discontinued Aktionärsbank division, totalling around EUR8 million. Adjusted
for this effect, which is not expected again in 2017, the profit for the
year to be assigned to shareholders was EUR16.39 million, up 24.3% on the
previous year. Moreover, the management increased the EPS forecast for the
2017 financial year from EUR0.90 to EUR1.00. This comes against the backdrop of
an extraordinarily good start to the year for the flatex subsidiary, which
gained 12,000 new customers in Q1 2017 alone. This represents around one
third of the total number of customers gained in 2016. Streamlining the
group structure will also lead to further cost reductions and efficiency
improvements, which are expected to significantly impact profits as early
as the second half of 2017. But above all, this should positively influence
profits once more in 2018.

The raised EPS forecast confirms our positive expectations for the
development of FinTech Group AG in 2017 and beyond. After the successful
realignment of the business, the company has returned to significant
profits and should also be able to further increase profitability. The
figures already published for 2016 were in line with the guidance issued by
the company and also do not differ significantly from our expectations. Our
positive outlook for 2017 has also been confirmed. On presentation of the
final 2016 annual report in April, we will completely revise our assessment
of FinTech Group AG. Until then, we confirm our target price of EUR27.00 and
the BUY rating based on the preliminary results for 2016.

Die vollständige Analyse können Sie hier downloaden:
http://www.more-ir.de/d/14959.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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