Report
Daniel Grossjohann

Cloud revenues grew 11%; CONVERSION/4 and self-developed add-ons as upcoming value drivers

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The All for One Group SE (ISIN DE0005110001, Prime Standard, A1OS GY) was able to increase revenues by 2% in the first half of the fiscal year, with a disproportionate increase in strategically important recurring revenues (+6% to €97.5 million). Despite the significant decline in the licensing business (-24% to €12 million) caused by the ongoing pandemic and the successful cloud transformation, the EBIT margin was expanded (5.8%; H1 19/20: 5.2%). In our view, CONVERSION/4 holds a lot of potential - the pipeline for the subscription model to migrate to SAP S/4HANA is well filled. Further successful references should accelerate demand in the medium term. Especially in regard to this potential, the All for One Group share continues to be favorably priced with an EV/revenue multiple of 0.78 (peer group median: 1,35).

Our price target for the All for One Group share, equally based on DCF valuation and peer group analysis, is €75.00. 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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