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
Anlass der Studie: Research Note
Kursziel: 29.50 EUR
Kursziel auf Sicht von: 31/12/2020
Analyst: Cosmin Filker, Matthias Greiffenberger
FinLab AG's business model as an investment company that focuses on Fintech business models means that an analysis of turnover and earnings performance according to conventional key figures does
not adequately represent the business situation. The most important message to take from an examination of revenue and EBIT is the fact that FinLab AG is 'self-sustaining', and that personnel and
material costs are therefore covered.
As in previous financial years, FinLab AG achieved a positive EBIT result, posting a result of EUR 1.16 million this year (previous year: EUR 1.02 million). Consequently, the company remains in the comfortable position of being able to keep the Fintech investments in the portfolio for as long as possible, thereby generating most of the potential increase in value. As such, it is not necessary to perform any exit transactions to compensate for possible deficits.
The basis for this stable EBIT performance is provided by revenue, which is made up of income from services provided to subsidiaries and holdings (management, marketing, accounting etc.) not to mention investment income. Investment income consists primarily of dividend distributions from HELIAD Equity Partners GmbH & Co. KGaA, in which a stake of 45.3% is held, as well as shares in profit generated by portfolio companies. Overall, total income increased to EUR 2.91 million (previous year: EUR 2.79 million), which, on account of the fact that overhead costs remained consistent, resulted in the reported EBIT increase.
As at 30/06/2019, FinLab AG had equity of EUR 106.00 million according to its IFRS balance sheet. This is based on the financial investments' carrying value of EUR 94.89 million, where the 45.3% investment in Heliad Equity Partners GmbH & Co. KGaA is currently the largest individual investment at EUR 16.15 million. The valuation of the Heliad investment declined significantly, particularly in the last two financial years, as a result of the need for amortisation of Heliad portfolio companies. The Heliad NAV, which was last updated on 31/03/2019, is EUR 6.76 per share (31/12/2018: EUR6.20 per share). Relative to this NAV, the hidden reserves of the HELIAD investment amount to EUR 13.68 million.