Original-Research

FinLab AG (von GBC AG): BUY

Original-Research: FinLab AG - von GBC AG

Einstufung von GBC AG zu FinLab AG

Unternehmen: FinLab AG

ISIN: DE0001218063

Anlass der Studie: Research Note

Empfehlung: BUY

seit: 06.10.2016

Kursziel: EUR 18.32

Letzte Ratingänderung: -

Analyst: Felix Gode, CFA

In H1 2016, FinLab AG generated total income of EUR1.88 million, around EUR3

million less than the same period in the previous year. Total income

comprised revenue, income from equity interests and other operating income.

The decline stems primarily from the drop in revenue resulting from lower

performance fees from the equity interest Heliad Equity Partners GmbH & Co.

KGaA. By contrast, management fees, as fixed cash flows, were stable. Since

the expected remuneration from performance fees is likely to be higher for

2015 than in the previous year, it can be assumed that correspondingly

higher income will be recorded in H2 2016.

The cost side, in contrast, was stable again in H1 2016, with only slight

changes in personnel and material costs. The lower EBIT in H1 2016 is thus

due mainly to lower income, which, as mentioned above, should be balanced

out in H2 2016.

As at 30 June 2016, the net asset value (NAV) was EUR12.26, only slightly

above its value on 31 December 2015. The main reasons for this were the

virtually unchanged share price of the largest equity interest, Heliad

Equity Partners GmbH & Co. KGaA, whose share price of EUR6.25 as at 30 June

2016 was only slightly higher than the closing price of EUR6.20 on 31

December 2015, as well as the fact that the capital rounds at nextmarkets

and Deposit Solutions, which significantly increased their value, did not

take place until the second half of the year.

In this context, it should be emphasised that significant write-ups on the

valuations had already been made as at 31 August 2016 due to the major

valuation premiums within the two financing rounds at the subsidiaries

Deposit Solutions and nextmarkets. This resulted in a corresponding

increase in NAV per share, which stood EUR14.83 on 31 August 2016, 21% above

the value at the end of the half-year.

As a result, it is becoming increasingly clear that the interests acquired

recently by FinLab AG as part of its reorientation since the end of 2014

are promising companies with corresponding upside potential. The company

has thus been able to considerably increase the value of its interests in

just a short time.

The company's financial situation changed only marginally compared to the

end of the previous financial year and remains good. Operating cash flow of

EUR0.22 million increased the company's liquidity slightly to EUR0.91 million

(31 December 2015: EUR1.29 million), despite further investments in the

equity interests. In addition, a loan made of EUR1.25 million, of which EUR0.8

million was already repaid in H1 2016, was fully repaid after the balance

sheet date, thus also strengthening the liquidity of FinLab AG.

It should also be mentioned that FinLab AG further expanded the development

of its portfolio in H1 2016. With the investment in AUTHADA, a further

equity interest was included in the portfolio, which increases the number

of fintech investments to four and opens up further scope for valuation

increases in future.

We valued FinLab AG by calculating the net asset value (NAV) as a key

performance indicator for private equity companies which is typical for the

sector. In making this calculation, we used the balance sheet amounts as at

30 June 2016 as the starting point and adjusted them to take account of

significant changes made since the balance sheet date that had an impact on

the NAV.

Based on this, we have calculated an equity value of EUR69.85 million as at

30 Sep-tember 2016, resulting in an NAV per share of EUR15.39. This

calculation does not yet take into account the hidden reserves of the

Heliad equity interest. Instead, ac-cording to our calculations, they

currently amount to EUR2.93 per FinLab share. In addition to the hidden

reserves, the fair value per FinLab share is EUR18.32, which confirms our

previous stock price target. Given the current share price of EUR13.40, this

results in upside potential of more than 35%.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/14345.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

[e-mail]

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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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Rating: BUY
Analyst: GBC