Expansion track continues unabated in Q2, sales guidance raised moderately
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In the first half of 2021/22, the All for One Group (ISIN DE0005110001, Prime Standard, A1OS GY) was able to expand revenue to €230.4 million (+24%). The organic growth rate of 10% shown in Q1 (calendar Q4) was confirmed in Q2 despite an increasingly challenging environment. CONVERSION/4 revenues grew by more than 400% to €5.1 million, and the momentum is expected to remain high. On the earnings side, the Group showed more moderate growth at first glance (EBIT: €13 million, +14%), although the key figure "EBIT before M&A effects" reported for the first time (€17.7 million; +37%) illustrates that the positive operating margin development is temporarily skewed by M&A effects. With a current share of recurring revenues of 51% and the SAP S/4HANA migration wave starting up, All for One Group is in a better position than many peers in the current uncertain macro environment. The valuation (EV/EBIT 10.7, with organic growth of 10%) still seems attractive to us.
Our price target for the All for One Group share, equally based on DCF valuation and peer group analysis, is €88.00. 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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