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CONVERSION/4 - flanked by planned near-shore acquisition - will drive growth after the pandemic

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With the planned acquisition of the Polish SNP Poland Sp. z o.o., All for One Group SE (ISIN DE0005110001, Prime Standard, A1OS GY)  is strengthening its own capacities in order to be prepared for the upcoming migration wave towards SAP S/4HANA. The Polish unit of SNP also includes a Digital Transformation Center (DTC). All for One Group is increasing its own share of the largely automated (migration) value chain, while partner and seller SNP can place its own focus more strongly on the core competency of a data migration software supplier. As the takeover has not yet been finally negotiated, the sales of SNP Poland are not yet included in our forecast. In view of the upcoming migration of existing SAP customers to SAP S/4HANA - which is largely independent of economic developments - All for One Group has a specific growth driver in CONVERSION/4. This is not yet reflected in the valuation (EV/Sales 0.8), because the market casts a special eye on the quarterly development. Here - analogous to the overall economy - an increase in the operating performance can be expected after the conclusion of the vaccination campaign (summer 2021).

Our price target for the All for One Group share, equally based on DCF valuation and peer group analysis, is €74.20. We reiterate our “Buy” rating.