Morning Note /
Turkey

Turkey: Earnings season will be completed today

  • BIST 100 broke another record with agressive buying and closed above 3000 level yesterday.

  • Sluggish opening likely today, yet we expect the upward trend to continue

  • SISE, ASELS, TUPRS, PGSUS are the companies we like technically.

Zeynep Erman
Zeynep Erman

Equity Research Analyst

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ATA Invest
19 August 2022
Published byATA Invest

BIST 100 broke another record with agressive buying and closed above 3000 level yesterday. CBT’s rate cut decision- which was a surprise- brought slight volatility but did not limit the risk appettide in the market. The latest cash inflow to banks turned to exporters and FX long companies following the TL weakness. Today a sluggish opening is likely yet we expect the upward trend to continue. Earnings season will be completed today. 3,000 2,985 are the daily support levels. We like SISE ASELS TUPRS PGSUS are the companies we like technically.

Company news:

* MPARK TI> bought back 101K shares at an average price of TL41.46 on 18 August 2022. Since 25 May 2022, the total number of shares bought back reached 2.5mn at an average price of TL36.72.

*SAHOL TI> bought back 1mn shares at an average price of TL24.64 on 18 August 2022. Since 09 Nov 2021, the total number of shares bought back reached 63.6mn at an average price of TL17.32.

*ARCLK TI> bought back 150K shares at an average price of TL67.74 on 18 August 2022. Since 02 July 2021, the total number of shares bought back reached 68.9mn at an average price of TL44.94.

*DOAS TI> 2Q22 Review: Stronger than expected results... Dogus Otomotiv posted TL1,766mn net income which is 15% higher than our estimate of TL1,538mn and 13% higher than consensus estimate of TL1,563mn in 2Q22. Despite the higher than expected tax expenses and lower than expected other operating income, higher than expected operating profit led to higher than expected net income in 2Q22. The company recorded TL2,157mn EBITDA which was 14% higher than our estimate of TL1,884mn and 14% higher than the consensus estimates of TL1,900mn in 2Q22. In 2Q22, EBITDA margin was 18.6% which is 154bps higher than our estimates of 17.0% (Consensus: 17.2%). Based on our 2022E estimates, DOAS is currently trading at 3.6x EV/EBITDA, implying 36% discount to its 5-yr historic average.

*TCELL TI> 2Q22 Earnings Review: Stronger expected bottomline Turkcell recorded TL1,858mn net income in 2Q22, 67.5% higher than our estimate of TL1,109mn and 107.6% above consensus estimate of TL895mn. Higher than expected EBIT (+TL70mn) , higher than expected income from investments net of financial expenses & lower than expected taxes were the reasons behind stronger than expected net income. Revenues were 3.4% above our estimates and EBITDA of TL5,030mn was 4.5% above our estimates. The company guidance for 2022 is revised up: (1) topline growth to “>40%” from “c.30%” and (2) EBITDA to c.TL20bn from c.TL19bn.