Hello Hidalgo,
Yes, you can. However, it makes no difference in this case (the setup is still the same)... Notice that SAP Netweaver Single Sign-On product is not free of charge.
SAP has a product (free of charge) that allow SNC (without SSO) for such cases... It is the SNC Client Encryption. However, this product is not supported into AS/400 systems... You can also check that in PAM...
I hope this clarifies.
Best Regards,
Guilherme de Oliveira
SAP Active Global Support