KOC Holding A.S.

Koc Holdings is an investment holding company. Through its subsidiaries, Co. is engaged in the business of natural gas, marketing, petroleum shipping, liquefied petroleum gas, power generation, production and trading of petroleum products and mining in the energy sector, production, trading, insurance and car rental in the automotive sector, production and sales, procurement, research and developement in the consumer durables sector, consumer finance, banking, custody, financial consulting, leasing, brokerage, real estate and portfolio management and brokerage banking in the finance sector, and tourism, trading, technology, ship construction and foreign trade in the other sectors.
  • TickerKCHOL
  • ISINTRAKCHOL91Q8
  • ExchangeIstanbul Stock Exchange
  • SectorOil & Gas Producers
  • CountryTurkey

Analysts

Berna Kurbay

BGC Partners: KCHOL 4Q19 - SLIGHTLY BETTER

Koc Holding’s 4Q19 net profit of TL1,110mn is higher compared with the earnings reports of the underlying companies, according to our calculations; with around TL150mn in excess contribution from unlisted companies and/or strong financial income at the holding level. Consensus 4Q19 net profit expectation was TL877mn, with the market having underestimated Tupras , YKB , Ford Otosan and Tofas’ earnings to some extent too.

Erol Danis

Top Picks Portfolio

We include Koc Holding in our Top Picks: Our conviction, as detailed in our recent rating upgrade report, is based on: 1) Koc offering one-stop shop exposure to high quality mostly hard currency driven assets, with Unlu & Co. Buy ratings on YKBNK, TUPRS, TOASO, FROTO and TTRAK; which constitute 69% of Koc’s current NAV. 2) Following a 15% underperformance vs the BIST-100 over the past three months, Koc is trading at an 11% discount to its current NAV, compared to the 5Y average discount of 5%, with the shares having traded at a premium as high as 3% in late 2019; and implying 29% upside curren...

Duygun Kutucu ...
  • Koray Pamir

Koc Holding

Upgrading to Buy following the completion of the UCG deal & widened discount to NAV: We are upgrading our recommendation for Koc Holding (“Koc”) to Buy from Hold, having increased our 12M TP to TL25.50/s, up 10% from TL23.20/s, denoting 28% upside potential (vs. Unlu coverage: 20%). The key revisions are 1) reflection in higher direct stake in Yapi Kredi Bank (up 9.02pps to 43.64%) following the share transaction with Unicredit (UCG), 2) net cash outflow stemming from the transaction (adjusted for misc. proceeds), and 3) revision in our treatment of Koc’s USD224m AT1 in Yapi Kredi as cash wit...

Duygun Kutucu ...
  • Koray Pamir

Koc Holding

Upgrading to Buy following the completion of the UCG deal & widened discount to NAV: We are upgrading our recommendation for Koc Holding (“Koc”) to Buy from Hold, having increased our 12M TP to TL25.50/s, up 10% from TL23.20/s, denoting 28% upside potential (vs. Unlu coverage: 20%). The key revisions are 1) reflection in higher direct stake in Yapi Kredi Bank (up 9.02pps to 43.64%) following the share transaction with Unicredit (UCG), 2) net cash outflow stemming from the transaction (adjusted for misc. proceeds), and 3) revision in our treatment of Koc’s USD224m AT1 in Yapi Kredi as cash wit...

Berna Kurbay

BGC Partners: KCHOL SLIGHTLY POSIITIVE/YKBNK – S.NEGATIVE FOR SHORT TERM : Unicredit places ~12% of YKBNK …

Unicredit places ~12% of YKB after Koc Holding announces the completion of the KFS reorganization; YKBNK – short-term slightly negative, KCHOL – Value Accretive … Koc Holding announces that the parties involved have acknowledged that the conditions defined in the previously announced ‘YKB Share Sale and Purchase Agreement’ and ‘KFS Share Sale and Purchase Agreement’ have been fulfilled, along with the regulatory/legal approval of the authorities in the relevant jurisdictions.

Moody's announces completion of a periodic review of ratings of Koc Holding A.S.

Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Koc Holding A.S. Global Credit Research- 22 Oct 2019. London, 22 October 2019-- Moody's Investors Service has completed a periodic review of the ratings of Koc Holding A.S. and other ratings that are associated with the same analytical unit.

Kiti Pantskhava

Koç Holding: Initiation – Prepared for a rainy day

We initiate coverage with a Hold. Koç Holding is a diversified conglomerate with exposure to energy, automotive, consumer durables and finance sectors. Its direct stakes in listed subsidiaries and joint ventures (JVs) amount to US$6.5bn. Sizable net cash position on the holding company (holdco) level, sustainable dividends from subsidiaries and mostly moderate leverage at consolidated, subsidiary and JV levels, make Koç Holding an attractive investment proposition. However, its remarkable credit fundamentals are reflected in bond prices, with KCHOL 23s and 25s indicated inside the sovereign cu...

Koc Holding A.S.: Update following Turkey sovereign rating action

A detailed rationale for Koc Holding's B1 rating, highlighting the sovereign constraints against a strong balance sheet and a balanced portfolio of mature and growth companies.

Koc Holding A.S.: Covenant Quality Pre-Sale Snapshot: US$_m _% Notes due 20_

Koç Holding A.Ş.'s unsecured notes use a largely European-style investment grade package.

Koc Holding A.S.: Update to Discussion of Key Credit Factors Following 2018 Financial Year End Results

A detailed rationale for Koc Holding's Ba2 rating, highlighting the sovereign constraints against a strong balance sheet and a balanced portfolio of mature and growth companies.

Berna Kurbay

BGC Partners: KCHOL 4Q19 - SLIGHTLY BETTER

Koc Holding’s 4Q19 net profit of TL1,110mn is higher compared with the earnings reports of the underlying companies, according to our calculations; with around TL150mn in excess contribution from unlisted companies and/or strong financial income at the holding level. Consensus 4Q19 net profit expectation was TL877mn, with the market having underestimated Tupras , YKB , Ford Otosan and Tofas’ earnings to some extent too.

Erol Danis

Top Picks Portfolio

We include Koc Holding in our Top Picks: Our conviction, as detailed in our recent rating upgrade report, is based on: 1) Koc offering one-stop shop exposure to high quality mostly hard currency driven assets, with Unlu & Co. Buy ratings on YKBNK, TUPRS, TOASO, FROTO and TTRAK; which constitute 69% of Koc’s current NAV. 2) Following a 15% underperformance vs the BIST-100 over the past three months, Koc is trading at an 11% discount to its current NAV, compared to the 5Y average discount of 5%, with the shares having traded at a premium as high as 3% in late 2019; and implying 29% upside curren...

Duygun Kutucu ...
  • Koray Pamir

Koc Holding

Upgrading to Buy following the completion of the UCG deal & widened discount to NAV: We are upgrading our recommendation for Koc Holding (“Koc”) to Buy from Hold, having increased our 12M TP to TL25.50/s, up 10% from TL23.20/s, denoting 28% upside potential (vs. Unlu coverage: 20%). The key revisions are 1) reflection in higher direct stake in Yapi Kredi Bank (up 9.02pps to 43.64%) following the share transaction with Unicredit (UCG), 2) net cash outflow stemming from the transaction (adjusted for misc. proceeds), and 3) revision in our treatment of Koc’s USD224m AT1 in Yapi Kredi as cash wit...

Duygun Kutucu ...
  • Koray Pamir

Koc Holding

Upgrading to Buy following the completion of the UCG deal & widened discount to NAV: We are upgrading our recommendation for Koc Holding (“Koc”) to Buy from Hold, having increased our 12M TP to TL25.50/s, up 10% from TL23.20/s, denoting 28% upside potential (vs. Unlu coverage: 20%). The key revisions are 1) reflection in higher direct stake in Yapi Kredi Bank (up 9.02pps to 43.64%) following the share transaction with Unicredit (UCG), 2) net cash outflow stemming from the transaction (adjusted for misc. proceeds), and 3) revision in our treatment of Koc’s USD224m AT1 in Yapi Kredi as cash wit...

Berna Kurbay

BGC Partners: KCHOL SLIGHTLY POSIITIVE/YKBNK – S.NEGATIVE FOR SHORT TERM : Unicredit places ~12% of YKBNK …

Unicredit places ~12% of YKB after Koc Holding announces the completion of the KFS reorganization; YKBNK – short-term slightly negative, KCHOL – Value Accretive … Koc Holding announces that the parties involved have acknowledged that the conditions defined in the previously announced ‘YKB Share Sale and Purchase Agreement’ and ‘KFS Share Sale and Purchase Agreement’ have been fulfilled, along with the regulatory/legal approval of the authorities in the relevant jurisdictions.

Sinan Goksen

Turkey Morning Call - August 2, 2017

> Market comment > Yapi Kredi Bank: We are upbeat on 2Q17 results > Unwarranted discounts offer great opportunity for entry > Tekfen Holding wins $200 mln Qatari contract

KOC HOLDING AS sees an upgrade to Positive due to a better fundamental star rating

The general evaluation of KOC HOLDING AS (TR), a company active in the Specialty Finance industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as defensive. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Positive. As of the analysis date January 10, 2020, the closing price was TRY 20.54 and its potential was estimated at TRY 22.57.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

Kiti Pantskhava

Koç Holding: Q3 review – liquidity remains strong

Reiterating Hold. Koç maintained high liquidity at the holding company (holdco) level. The value of its investment portfolio increased, despite a challenging operating environment in Turkey, and covered the holdco’s debt with a 3:1 ratio. Other things being equal, the ratio could increase to almost 5:1 after the upcoming US$750mn bond redemption. Weak financial results from Tupras, the holdco’s key dividend-paying subsidiary since 2016, puts the company’s payable in 2020 at risk. However, we believe that the holdco is well-equipped to deal with reduced dividend inflows. It has accumulated US$2...

Kiti Pantskhava

TURKEY: Too much optimism around corporates

The market, in our view, over-prices Turkish corporate bonds, apparently disregarding the risk posed by accelerating inflation and the potential for a demand shock in the absence of a decisive response from the monetary and fiscal authorities.

MarketLine Department

Dogus Otomotiv Servis ve Ticaret AS - Strategy, SWOT and Corporate Finance Report

Summary Dogus Otomotiv Servis ve Ticaret AS - Strategy, SWOT and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Dogus Otomotiv Servis ve Ticaret A.S. (Dogus Otomotiv or 'the company') is engaged in importing and selling passenger cars, light and heavy commercial vehicles, industrial and marine engines and cooling systems of international brands. Dogus Otomotiv is a member of Dogus ...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Int'l Compass: Global Equity Strategy

EM Remains In Favor; Shanghai Comp Breaking Out A weakening US dollar (DXY) continues to be a major tailwind for both EM equities and the commodity Sectors. Improving price and RS trends for these risk-on areas of the market are among the many characteristics consistent with historical bull markets. Therefore, we continue to label this a bull market and we believe global equities are still in the early innings of a broad-based advance. • EM Equities. Price action has remained weak for the US dollar (DXY), which has been great news for EM equities. As outlined in our 12/19/19 Int'l Compass an...

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