Pandemic casts a shadow, higher cloud revenues
The H1 figures for All for One Group AG (ISIN DE0005110001, Prime Standard, A1OS GY) (sales: +1%; EBIT -6%) reflect the impact of the coronavirus pandemic, although a weakness in licence revenue (-27%) was already visible in the first quarter (calendar Q4). The solid growth in revenue from Cloud Services and Support (+11%) was barely dampened by the present crisis. Overall, All for One Group has adjusted very quickly to the new situation: Even complex SAP S/4HANA implementation projects are now being rolled out remotely. Immediate service packages have been put together for customers (e.g. to set up compensation under the short-time working scheme, digital collaboration). In general, customers seem reluctant to invest and the pandemic will leave its mark, particularly in the present third quarter. At present, the company expects that full-year sales could be down slightly year-on-year, with a more severe drop in EBIT (compared to adjusted prior-year EBIT). Based on our revised forecast, the valuation of All for One Group is still low, with an EV/sales multiple of just 0.46.
Our price target for the All for One Group share, equally based on DCF valuation and peer group analysis, is €68.30. We reiterate our “Buy” rating.
All for One Steeb is a SAP service provider for the midmarket. Co.'s range of product and services include consulting, the sale of software licenses, outsourcing and IT services. Co.'s products and services provide customer support extends from management and technology consulting, software licenses, industry solutions, and optimization projects to software maintenance, outsourcing and managed services from Co.'s data centers' private cloud, and also covers all enterprise processes. Co.'s portfolio also encompasses add-on solutions and services for the SAP Enterprise Resource Planning Human Capital Management platform and SAP SuccessFactors.
Since 2007, BankM AG (Frankfurt am Main, Germany) is the partner of small and medium-sized enterprises and specializing in capital market financing with its experienced, interdisciplinary team. SME customers benefit from individual service and rapid access to selected investors that fit their needs. BankM's services include capital market advisory, arranging IPOs and capital increases for equity financing, debt advisory and debt capital mediation, designated sponsoring and research as well as M&A, hereby specializing in the identification of suitable strategic partners in China.
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