Report
Daniel Grossjohann

Cloud growth and margin increase

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In the first three months of the current fiscal year (calendar Q4), All for One Group SE (ISIN DE0005110001, Prime Standard, A1OS GY) was able to increase revenue (+3%), EBIT (+24%) and EPS (+21%) - despite the pandemic-related restraint of some customers. Key to the margin expansion was growth in recurring revenue (revenue share 51%; Q1 19/20:50%). The planned acquisition of SAP service provider SNP Poland should strengthen the existing growth momentum and allow the All for One Group to benefit to a greater extent from the migration wave towards SAP S/4HANA (via CONVERSION/4). Despite the share price increase in recent months, the upcoming migration wave does not yet seem to be fully priced in - with a 20/21 EV/sales of around 0.9, the All for One Group is favorable by peer comparison.

Our price target for the All for One Group share, equally based on DCF valuation and peer group analysis, is €77.50. We reiterate our “Buy” rating.

Underlying
All for One Group SE

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.

Provider
BankM Research
BankM Research

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.

Analysts
Daniel Grossjohann

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