Original-Research: JDC Group AG - von GBC AG
Einstufung von GBC AG zu JDC Group AG
Unternehmen: JDC Group AG ISIN: DE000A0B9N37
Anlass der Studie: Research Report (Anno) Empfehlung: BUY Kursziel: 12.40 EUR Letzte Ratingänderung: Analyst: Cosmin Filker; Marcel Goldmann
Increased inorganic growth and digitalization strategy in 2017; platform business and inorganic growth offer great potential; revenue and earnings growth expected
In the past financial year 2017, JDC Group AG continued to increase its inorganic growth and wholesale business. Therefore cooperation was agreed with the Albatros Versicherungsdienste GmbH, part of the Lufthansa Group, to outsource the processing and provision of financial products. As part of this, around 150,000 customers are to be fully transferred to the JDC Group AG platform. The additional sales potential within the five-year agreement amounts to as much as EUR 20 million p.a., with an annual EBITDA contribution of over EUR 1.0 million. In addition, while increasing consolidation on the market for independent financial intermediaries, the company has taken over two subsidiaries of the ARTUS Group with an insurance portfolio of 40,000 end customer contracts. The annual net premiums amount to as much as EUR 30 million and the EBITDA contribution is approximately EUR 1.0 million p.a.
At the same time, the digitisation strategy was further increased in 2017. In addition to appointing Stefan Bachmann as an additional member of the Executive Board (formerly Finance & Fintech Industry Manager of Google), it started collaborating with the loan comparison portal smawa and announced the establishment of the blockchain lab in January 2018. The medium-term aim is to establish smart contracts and new products based on blockchain technology.
The resulting potential after the acquisition of customers and the development of the digitisation strategy will only become visible in the current financial year 2018. In the past financial year 2017, without taking into account the new customer acquisitions, the JDC Group AG had 8.3% revenue growth, rising to EUR 84.48 million (previous year: EUR 78.05 million). A more dynamic sales performance was countered in particular by the slow uptake in new business at the end of the year. As part of MiFID II and IDD, for instance, all documentation for brokerage transactions and in the investment process as well as the associated IT processes had to be adjusted, resulting in a correspondingly high commitment of resources. The EBITDA rose in line with sales to EUR 3.19 million (previous year: EUR 2.72 million). This included special expenses from the started wholesale business, which have still, however, not yet been offset by corresponding sales. When adjusted, the EBITDA would have been EUR 3.9 million, which in comparison with the adjusted value for the previous year (EUR 2.4 million), equates to a disproportionate increase in profit of approximately 63%.
In the current financial year, JDC Group AG should be able to achieve significant revenue growth. According to our forecasts, the first-time inclusion of the newly acquired customers alone should make it possible to exceed the sales mark of EUR 100 million. This potential and the organic revenue growth realised as part of the digitisation strategy should lead to sales of almost EUR 140 million by 2020. In the medium term, we expect significant economies of scale to be achieved, whereby the EBITDA margin should rise to over 10% according to our expectations.
We have taken this into account in our DCF valuation model, for which we have calculated an updated target price of EUR 12.40 (previously: EUR 11.50). The target price increase is a result from the first inclusion of the higher 2020 estimates as the basis for the continuity phase of our valuation model. In addition, we have rolled the target price periodically over to the end of financial year 2019 (previously: 2018). Based on the current price level, this results in a price potential of 52.0% and we therefore issue a BUY rating.
Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/16693.pdf
Kontakt für Rückfragen Jörg Grunwald Vorstand GBC AG Halderstraße 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de ++++++++++++++++ Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben:(5a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung.htm +++++++++++++++
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