9:32 | 11.07.2018
JDC Group AG

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

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:

Kontakt für Rückfragen
Jörg Grunwald
Halderstraße 27
86150 Augsburg
0821 / 241133 0
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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
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