BGC PARTNERS: ALKIM BUY MAINTAINED
• TP upped to TL32.6/share from TL25.8/share, BUY maintained… The rise is thanks mainly to our new macro estimates. Contracts in Alkim’s mining/chemical operations are mainly in EUR (around 70%) while costs are in TL; the company is a clear beneficiary of weak TL. On the paper side, prices are generally linked to US$, as the majority of the market consists of imported products and the main raw material cellulose is in US$. We see 43% upside potential including expected dividend yield. The stock trades at 6.9x 2018 P/E (2019E: 4.7x) and 5.4x 2018E EV/EBITDA (2019E: 3.9x).Alkim Alkali Kimya produces and sells chemical materials and paper products in Turkey and internationally. Co. offers sodium sulphate for use in detergent, paper, glass, textile and chemical industries. Co. manufactures natural raw salts, common salts and industrial type of salts. Co. manufactures liquid magnesium chloride for the manufacturing of fire-resistant sheets. Co. offers leonite, a fertilizer for crops sensitive to chloride. Co. also offers paper products. In addition, Co. operates a chromite mine in Eskisehir region of Turkey; and produces glauberite and tenardite, as well as provides insurance services.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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