Morning Note /
Turkey

Turkey: Eyes will be on US CPI data

  • BIST 100 strong resistance at 5,000 broken up with strong volume yesterday

  • As the breathless rise continues the volatility in the market is inevitable

  • We expect a positive opening in the market today

ATA Invest
13 December 2022
Published byATA Invest

BIST 100 strong resistance at 5,000 broken up with strong volume yesterday and the index was up by 3,76%. As the breathless rise continues the volatility in the market is inevitable. We expect a positive opening in the market today towards 5,230 5,320 daily resistance levels. Eyes will be on US CPI data.

Company news:

*SAHOL TI> announced that the company sold 40.8mn lot which had been bought back in the period of 17.11.2021 – 18.04.2022 to institutional investors at average price of TL36.60/shr through block sale method. Sabancı Holding shares amounting 75.9mn which were acquired at average price of 19.71TL via the share buy back program dated Nov 09 2021 – Dec 07 2022. The company sold 40.8mn shares through a block sale at the price of 36.60 TL/ share. Sabancı Holding recorded TL856mn income.

 *MAVI TI> 3Q22 Results: Mavi posted TL448mn net income, 7% higher than the consensus estimates of TL419mn (neutral, not rated) Mavi realised TL3,202mn net sales, implying 136% y/y growth in 3Q22, 6% higher than consensus estimate of TL3,030mn. The company’s gross margin improved by 96bps y/y to 52.1% while the company’s OPEX/Net Sales ratio remained flat y/y at 32.8% in 3Q22. The company reported 23.4% EBITDA margin, implying 151bps y/y decline in 3Q22. In Turkey, no store opened or closed. In 3Q22, the number of stores remained at 398 in 3Q22 (retail: 329 and franchise: 69). Internationally, the company the company closed 2 net stores in Russia (Canada:4, Europe: 1, Russia: 34, rest of the world: 24). The company maintained its 2022 guidance. The company maintained its revenue growth guidance at 120% (2) store expansions guidance at 13 (3) EBITDA Margin (exc. IFRS-16) guidance at 19.0% (+/-0.5%) for 2022E. The company maintained its EBITDA Margin (inc. IFRS-16) guidance at 24.0% (+/-0.5%) and the management maintained its 3 net store opening guidance and CAPEX guidance of 3% of sales. Trading update for 4Q22: Turkey retail sales increased 143% y/y in Nov’22 y/y and 120% y/y in the first 7 days of Dec’22. Online sales in Turkey grew 124% y/y in Nov’22. Mavi will hold a teleconference today at 16:00 Istanbul time.

 *SASA TI> announced that the company cancelled its share buy back program. Note that, 1.7mn lots of shares have been repurchased so far with a total amount of TL95mn. In line with the aim of using Company's resources primarily in the ongoing Fiber Investment and Textile Chips, Bottle Chips, Pet Chips Investment in the upcoming period, and considering the developments in the credit and capital markets, it has been unanimously decided at the meeting of he company’s Board of Directors dated 12 December 2022 to cancel the unused portion of TL404mn of the buy-back limit determined by the Board of Directors Decision dated 21 October 2021

 *SASA TI>: ERDEMOĞLU HOLDİNG A.Ş. sold 2.5mn SASA shares at TL115/shr and their stake declined to 62.25% from 62.36%.

 *AUTOS > November 2022: Exports increased by 27.4% y/y to 96.9K units…On a segmental basis, passenger car (PC) exports increased by 19.5% y/y to 62.0K units in Nov’22, whereas LCV exports increased 57.6% y/y to 32.0K units during the same period. HCV exports were down by 25.0% y/y to 2.9K units in October’22. Tofas’ export volume increased by 106.4% y/y to 15.5K units in November 2022 whereas Ford Otosan’s export sales volume increased by 44.8% y/y to 22.6K units during the same period.

 *MPARK TI> bought back 8K shares at an average price of TL78.26 on 12 December 2022. Since 25 May 2022, the total number of shares bought back reached 6.8mn at an average price of TL49.34.

Weekly Agenda:

Dec,15: Oct Home sales statistics

Dec, 15: BRSA weekly Banking sector Data

Dec,16: Oct CBRT survey of Participations