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Original-Research: Advanced Blockchain AG - from GBC AG

Classification of GBC AG to Advanced Blockchain AG

Company Name: Advanced Blockchain AG ISIN: DE000A0M93V6

Reason for the research: Research Report (Anno) Recommendation: Kaufen Target price: 17.64 EUR Target price on sight of: 31.12.2025 Last rating change: Analyst: Matthias Greiffenberger, Julien Desrosiers

Update on the separate financial statements 2023. Significant upside potential at group level on the portfolio valuation.   Advanced Blockchain AG has so far only published their individual financial statements for the 2023 fiscal year. Therefore, the currently available figures are only of limited significance. The consolidated financial statements, which will provide more comprehensive information on the company's development, are expected to be published in the coming weeks. The consolidated financial statements will contain detailed information about the financial situation and performance of the subsidiaries, thus providing a clearer picture of the entire corporate group.   The company (individual entity) nearly doubled its revenue in the 2023 fiscal year, increasing from EUR0.06 million in 2022 to EUR0.11 million. Despite this growth, the absolute revenue level remains low. The operating investment business is outsourced to Incredulous Labs Limited, so the majority of revenue and profitability lies with the Incredulous Labs sub-group.   The earnings development shows a deterioration of EBITDA from -EUR0.5 million in 2022 to -EUR0.72 million in 2023. This deterioration is due to significantly lower other operating income, despite cost reductions. Other operating income drastically fell from EUR0.65 million to EUR0.08 million, while personnel costs were significantly reduced to EUR0.11 million (previous year: EUR0.33 million) due to staff reductions. Additionally, write-downs on current assets of EUR0.19 million were made due to lack of recoverability, whereas no such write-downs were made in the previous year. This resulted in a net loss of EUR0.88 million (previous year: EUR0.51 million).   This led to a decrease in equity from EUR10.75 million to EUR9.56 million. The total assets decreased from EUR15.68 million to EUR13.71 million, due to the increased balance sheet loss and the reduction of provisions and liabilities. Despite the decrease in equity, we believe the company remains well-positioned. Receivables from affiliated companies amounting to EUR11.31 million are considered nearly cash-equivalent. These mainly consist of loans to Incredulous Labs Ltd., whose portfolio should significantly exceed the loan value upon liquidation.   The group's focus for the 2024 fiscal year is on sustainable growth, diversification of revenue sources, and increased activities in Switzerland and the United Arab Emirates. The group also plans to expand its team and implement cross-chain initiatives to leverage network effects.   The revaluation of the top ten investments by AVS-Valuation GmbH shows a significant increase in the portfolio value by 45% to EUR57.5 million. The estimated total value of the portfolio as of December 31, 2023, is around EUR105 million, which corresponds to a net asset value (NAV) of approximately EUR103 million. The current market capitalization of Advanced Blockchain AG is around EUR15.18 million, which represents a significant undervaluation compared to the fair value. Considering the significantly improved market situation in the crypto markets, we are gradually reducing our original 'crypto winter' discount to 35%. This leads to a fair value per share of EUR17.64. Given the considerable upside potential, we assign a 'BUY' rating.

You can download the research here: http://www.more-ir.de/d/30231.pdf

Contact for questions GBC AG Halderstraße 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de ++++++++++++++++ Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http:s//www.gbc-ag.de/de/Offenlegung +++++++++++++++ Date and time of completion of the report: 17.07.2024 (10:00) Date and time of the first distribution of the report: 17.07.2024 (12:00)

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The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

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Quelle: dpa-Afx