Morning Note /
Turkey

Turkey: We expect another positive opening in BIST today

  • Following a very volatile session, BIST 100 closed above 2.900 resistance yesterday.

  • On the negative side, the market is still fragile and vulnerable and reacts with huge volatility to different newsflow.

  • On the positive side, finally after almost 7 months in 2022 we see some foreign buying in Turkish equities.

ATA Invest
17 August 2022
Published byATA Invest

Following a very volatile session BIST 100 closed above 2.900 resistance yesterday. On the negative side still the market is fragile and vulnerable and reacts with huge volatility to different newsflow. On the positive side finally after almost 7 months in 2022 we see some foreign buying in Turkish equities. Foreign ownership increased to 33.79% levels in mid August after hitting the bottom at 32.71% levels at the beginning of August. Today we expect another positive opening in BIST and the index to move towards 2.925 resistance level. In case broken up next levels to be followed will be 2.940 and 2.950

Company news:

*KCHOL TI> posted TL15,449mn net income in 2Q22, higher than the consensus estimates of TL11,492mn. (Positive, not rated) KCHOL is currently trading at 31.2% discount compared its NAV whereas it was trading at 11.2% historically.

*ENKAI TI> 2Q22 Results: Enka posted TL4,486mn net loss in 2Q22 which was significantly lower than consensus estimate of TL646mn net loss in 2Q22. (not rated) Enka’s revenues increased by 169% y/y to TL12.57bn in 2Q22 which was 4% below the consensus estimate of TL13.06bn. Contracting revenues increased by 141% y/y to TL7.02bn in 2Q22 and Enka’s construction backlog decreased by 1.5% q/q to US$3.66bn in 2Q22. Real estate revenues increased by 135% y/y to TL1,486mn during the same period. Trade revenues increased by 41% y/y to TL1,049mn in 2Q22. Enka’s EBITDA came at TL3,115mn which was 29% higher than consensus estimate of TL2,423mn in 2Q22. Contracting EBITDA increased by 122% y/y to TL1,626mn in 2Q22 while real estate EBITDA increased 118% y/y to TL918mn during same period. Energy EBITDA decreased by 85% q/q to TL80mn. The company generated 24.8% EBITDA margin compared to consensus estimate of 18.5%. Despite higher than expected operating performance, significant losses from investment activities led to net losses at the bottom-line.

*SOKM TI> Sok Market increased its net income by 215% y/y to 353mn TL in 2Q22, 4.6% above consensus estimates. (neutral) Net sales increased by 95.2% y/y to 13.3mlyr TL in 2Q22, 1.4% above estimates. During the same period, EBITDA margin declined by 131bps to 8.2%, 20 bps below our estimates.

*BIZIM TI> 2Q22 Review: Better than expected results. Bizim Toptan recorded TL36.4mn net income in 2Q22, better than our est. of TL26.7mn and consensus of TL31mn. Higher than expected EBITDA was the main reason behind stronger than expected results. EBITDA of TL214.6mn was higher than our estimate of TL172.4mn. Adjusted for net financial expenses related to operations, adj-EBITDA of TL141.8mn was also above our estimate of TL96.1mn. 2022 Guidance is revised up: Topline growth guidance is revised up to 75% (+/- 5%) (excl tobacco &sugar) from 63% (+/-5%) vs our estimate of 83%.

*ATATP TI> 2Q22 Earnings Review: ATP posted TL23mn net income in 2Q22, implying 31% y/y growth (not rated). The company’s net sales increased by 93% y/y to TL103mn in 2Q22. In regional basis, revenues from Turkey increased by 137% y/y to TL75mn in 2Q22 whereas revenues from Europe increased by 81% y/y to TL10mn in the same period. Revenues from China increased by 45% y/y to TL29mn in 2Q22. The company’s gross profit increased by 84% y/y to TL46mn 2Q22. In regional basis, ATP's Turkey gross profit increased by 179% y/y to TL42mn in 2Q22. The company’s Europe gross profit increased by 257% y/y to TL2mn in 2Q22. China gross profit declined to TL3mn in 2Q22 from TL4mn in 2Q21 due to temporary restaurant closures due to covid related restrictions. The company’s EBITDA increased by 8% y/y to TL14mn in 2Q22 while the company’s EBITDA margin declined to 13.5% in 2Q22 from 24.2% in 2Q21.We believe we will receive more positive signal regarding growth in 2H22 on the back of growth in hospitality segment which had been under pressure.

* ARCLK TI> bought back 80K shares at an average price of TL65.85 on 16 August 2022. Since 02 July 2021, the total number of shares bought back reached 68.6mn at an average price of TL44.86.

*SISE TI> bought back 180k shares at an average price of TL23.36 on 16 Aug 2022. Since February, 26 2021, the total number of shares bought back reached 97.653mn at an average price of TL14.76.

*MPARK TI> bought back 50K shares at an average price of TL42.35 on 16 August 2022. Since 25 May 2022, the total number of shares bought back reached 2.3mn at an average price of TL36.23.

Weekly Agenda:

Aug 17: ENKAI 2Q22 NI cons TL -646 mn

Aug 17: ULKER 2Q cons NI: TL -265 mn ATA TL -414 mn

Aug 17: BIMAS 2Q cons NI: TL 1.621 mn ATA TL 1656 mn

Aug 18: CBRT rate decision no change expected

Aug 18: TCELL 2Q22 NI cons TL 895 mn ATA 1109 mn

Aus 18: DOAS 2Q22 NI cons TL 1563 mn ATA 1538 mn