Re­se­arch | 17 Juli 2024 00:00

Ori­gi­nal-Re­se­arch: Ad­van­ced Block­chain AG – from GBC AG

Clas­si­fi­ca­ti­on of GBC AG to Ad­van­ced Block­chain AG

Com­pa­ny Name: Ad­van­ced Block­chain AG
ISIN: DE000A0M93V6

Re­ason for the re­se­arch: Re­se­arch Re­port (Anno)
Re­com­men­da­ti­on: buy
Tar­get pri­ce: 17.64 EUR
Tar­get pri­ce on sight of: 31.12.2025
Last ra­ting ch­an­ge:
Ana­lyst: Mat­thi­as Greif­fen­ber­ger, Ju­li­en Des­ro­siers

Up­date on the se­pa­ra­te fi­nan­cial state­ments 2023. Si­gni­fi­cant up­si­de po­ten­ti­al at group le­vel on the port­fo­lio va­lua­ti­on.

Ad­van­ced Block­chain AG has so far only pu­blished their in­di­vi­du­al fi­nan­cial state­ments for the 2023 fis­cal year. The­r­e­fo­re, the curr­ent­ly available fi­gu­res are only of li­mi­t­ed si­gni­fi­can­ce. The con­so­li­da­ted fi­nan­cial state­ments, which will pro­vi­de more com­pre­hen­si­ve in­for­ma­ti­on on the
company’s de­ve­lo­p­ment, are ex­pec­ted to be pu­blished in the co­ming weeks. The con­so­li­da­ted fi­nan­cial state­ments will con­tain de­tail­ed in­for­ma­ti­on about the fi­nan­cial si­tua­ti­on and per­for­mance of the sub­si­dia­ries, thus pro­vi­ding a clea­rer pic­tu­re of the en­ti­re cor­po­ra­te group.

The com­pa­ny (in­di­vi­du­al en­ti­ty) ne­ar­ly dou­bled its re­ve­nue in the 2023 fis­cal year, in­cre­asing rom €0.06 mil­li­on in 2022 to €0.11 mil­li­on. De­spi­te this growth, the ab­so­lu­te re­ve­nue le­vel re­mains low. The ope­ra­ting in­vest­ment busi­ness is out­sour­ced to In­c­re­du­lous Labs Li­mi­t­ed, so the ma­jo­ri­ty of re­ve­nue and pro­fi­ta­bi­li­ty lies with the In­c­re­du­lous Labs sub-group.

The ear­nings de­ve­lo­p­ment shows a de­te­rio­ra­ti­on of EBITDA from -€0.5 mil­li­on in 2022 to -€0.72 mil­li­on in 2023. This de­te­rio­ra­ti­on is due to si­gni­fi­cant­ly lower other ope­ra­ting in­co­me, de­spi­te cost re­duc­tions. Other ope­ra­ting in­co­me dra­sti­cal­ly fell from €0.65 mil­li­on to €0.08 mil­li­on, while per­son­nel cos­ts were si­gni­fi­cant­ly re­du­ced to €0.11 mil­li­on (pre­vious year: €0.33 mil­li­on) due to staff re­duc­tions. Ad­di­tio­nal­ly, wri­te-downs on cur­rent as­sets of €0.19 mil­li­on were made due to lack of re­co­vera­bi­li­ty, whe­re­as no such wri­te-downs were made in the pre­vious year. This re­sul­ted in a net loss of €0.88 mil­li­on (pre­vious year: €0.51 mil­li­on).

This led to a de­crease in equi­ty from €10.75 mil­li­on to €9.56 mil­li­on. The to­tal as­sets de­creased from €15.68 mil­li­on to €13.71 mil­li­on, due to the in­creased ba­lan­ce sheet loss and the re­duc­tion of pro­vi­si­ons and lia­bi­li­ties. De­spi­te the de­crease in equi­ty, we be­lie­ve the com­pa­ny re­mains
well-po­si­tio­ned. Re­ceiv­a­bles from af­fi­lia­ted com­pa­nies amoun­ting to €11.31 mil­li­on are con­side­red ne­ar­ly cash-equi­va­lent. The­se main­ly con­sist of lo­ans to In­c­re­du­lous Labs Ltd., who­se port­fo­lio should si­gni­fi­cant­ly ex­ceed the loan va­lue upon li­qui­da­ti­on.

The group’s fo­cus for the 2024 fis­cal year is on sus­tainable growth, di­ver­si­fi­ca­ti­on of re­ve­nue sources, and in­creased ac­ti­vi­ties in Switz­er­land and the United Arab Emi­ra­tes. The group also plans to ex­pand its team and im­ple­ment cross-chain in­itia­ti­ves to le­vera­ge net­work ef­fects.

The reva­lua­ti­on of the top ten in­vest­ments by AVS-Va­lua­ti­on GmbH shows a si­gni­fi­cant in­crease in the port­fo­lio va­lue by 45% to €57.5 mil­li­on. The esti­ma­ted to­tal va­lue of the port­fo­lio as of De­cem­ber 31, 2023, is around €105 mil­li­on, which cor­re­sponds to a net as­set va­lue (NAV) of ap­pro­xi­m­ate­ly €103 mil­li­on. The cur­rent mar­ket ca­pi­ta­liza­ti­on of Ad­van­ced Block­chain AG is around €15.18 mil­li­on, which re­pres­ents a si­gni­fi­cant un­derva­lua­ti­on com­pared to the fair va­lue. Con­side­ring the si­gni­fi­cant­ly im­pro­ved mar­ket si­tua­ti­on in the cryp­to mar­kets, we are gra­du­al­ly re­du­cing our ori­gi­nal ‚cryp­to win­ter‘ dis­count to 35%. This leads to a fair va­lue per share of €17.64. Gi­ven the con­sidera­ble up­si­de po­ten­ti­al, we as­sign a ‚BUY‘ ra­ting.

You can down­load the re­se­arch here:
http://​www​.more​-ir​.de/​d​/​3​0​2​3​1​.​pdf

Cont­act for ques­ti­ons
GBC AG
Hal­der­stra­ße 27
86150 Augs­burg
⁰⁸²¹⁄₂₄₁₁₃₃ 0
research@​gbc-​ag.​de
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Of­fen­le­gung mög­li­cher In­ter­es­sens­kon­flik­te nach § 85 WpHG und Art. 20 MAR Beim oben ana­ly­sier­ten Un­ter­neh­men ist fol­gen­der mög­li­cher In­ter­es­sen­kon­flikt ge­ge­ben: (5a,11); Ei­nen Ka­ta­log mög­li­cher In­ter­es­sen­kon­flik­te fin­den Sie un­ter:
http:s//www.gbc-ag.de/de/Offenlegung
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Date and time of com­ple­ti­on of the re­port: 17.07.2024 (10:00)
Date and time of the first dis­tri­bu­ti­on of the re­port: 17.07.2024 (12:00)

——————-trans­mit­ted by EQS Group AG.——————-

The is­suer is so­le­ly re­spon­si­ble for the con­tent of this re­se­arch.
The re­sult of this re­se­arch does not con­sti­tu­te in­vest­ment ad­vice
or an in­vi­ta­ti­on to con­clude cer­tain stock ex­ch­an­ge tran­sac­tions.