TOFAS - BUY
• Tofas has de-rated in the last 12 months but possesses many desirable qualities… Tofas has underperformed BIST-100 by 12% y/y, as the market priced in the disappointment from the lack of material export growth in the near-term. But the following qualities still make Tofas attractive at the current valuation, especially given the turmoil in the Turkish markets: 1) Tofas generates more than 70% of revenue from exports where it enjoys margin protection (and even some gains with the weak TL); 2) It is in an advantageous spot as a local producer of both passenger cars and LCVs in Turkey; 3) It has a strong balance sheet and excellent cash flow generation with good dividend prospects; 4) Its multiples are at the bottom of the range observed in the last 5 years.Turk Otomobil Fabrikasi is an automobile manufacturing group based in Turkey. Co. is engaged in manufacturing, assembly and trading of passenger cars and engines, equipment and spare parts. Co. manufactures passenger cars and light commercial vehicles at its plant near Bursa under licenses from Fiat Auto S.p.A. Co., which is a member of Koc Holding A.fi. and Fiat Group, also produces various automotive spare parts used in its automobiles. Co. manufacturing facilities are located in Bursa. Co. also is engaged in the production of Doblo modellight commercial vehicles in Turkey for Fiat.
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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