Original-Research: KPS AG (von GBC AG): Hold

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Original-Research: KPS AG - von GBC AG

Einstufung von GBC AG zu KPS AG

Unternehmen: KPS AG

ISIN: DE000A1A6V48

Anlass der Studie: Research Update

Empfehlung: Hold

Kursziel: 18.00 EUR

Letzte Ratingänderung: -

Analyst: Matthias Greiffenberger; Felix Gode, CFA

In the first half of 2016/17, KPS AG was able to continue its dynamic

growth and achieve a new revenue record. Revenue increased by 20.3% to

EUR82.83 million and was therefore well on track in terms of the full-year

forecast.

On the one hand the dynamic growth was due to the growth in business with

existing customers in the transformation consulting sector, and on the

other hand to the increasing international expansion. At segment level,

revenue in the transformation consulting sector increased by 24.4% to

EUR74.96 million. The most important customers continue to be from the

consumer and trade sectors, which have been heavily affected by the

megatrend of digitalisation. Due to the high demand in these sectors for

KPS solutions, the consulting team has virtually had a full workload for

years and a large number of freelancers have also been engaged.

On the earnings side, a new record was also achieved and EBIT increased by

17.8% to EUR12.49 million. Due to the international expansion and the

larger organisational structures, costs were incurred which prevented even

stronger earnings growth. However, the increasing industrialisation of the

consulting approach should allow for significant scaling effects and margin

improvements in the future.

To this end, we confirm our forecast and expect revenue of EUR164.25

million for financial year 2016/17 and EUR189.49 million for financial year

2017/18. We also expect KPS to achieve an EBIT of EUR25.77 million for

2016/17 and EUR30.38 million for 2017/18. In our view, KPS will continue to

grow very dynamically and will be able to further develop its position as a

European market leader in the field of transformation consulting for the

consumer and trade sectors. The megatrend of digitalisation also plays a

major role here and we expect excessive demand in this area in the future.

In terms of margins, we assume that the industrialisation of the consulting

approach will lead to further margin improvements and that the costs of

further projects can be gradually reduced. In addition, we expect that the

service and maintenance business in the products/licences segment will

increase, which has exceptionally high margins due to the high proportion

of recurring revenue.

KPS AG is generally very well positioned in the current market environment

and uses its market position for further expansion purposes. More customers

should be won by strategic branches abroad; in particular, the USA should

produce significant revenue and earnings contributions in the next few

years. In addition, we expect that the industrialisation of the consulting

approach will lead to a disproportionate increase in earnings. On the basis

of our DCF model, we have determined a target price of EUR18.00 per share

and allocated a HOLD rating, given the current price of EUR17.28 per share.

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/15305.pdf

Kontakt für Rückfragen

Jörg Grunwald

Vorstand

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Offenlegung möglicher Interessenskonflikte nach §34b Abs. 1 WpHG und FinAnV Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung.htm

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