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 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

[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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-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.

Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung

oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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Rating: BUY
Analyst: GBC