BGC Partners: TURK TRAKTOR / Company Update / BUY (Maintained)
Two key developments so far in 2020… 1) As of January 2020, 50% interest rate subsidy on tractor loans from Ziraat Bank has become available for loans up to TL500k (vs. TL75k before) if the tractor is locally built, with the base loan rate lower at 9% vs. 12% before; which should fuel tractor demand; 2) Turk Traktor unveiled 2020E guidance last week, pointing to ~18% growth in Turkish tractor demand and total unit sales (domestic+export) growth of ~10%; at the mid-point of the guidance range. We maintain our forecasts, which point to the high-end of the guidance range, with 28% tractor demand growth to 33k units and Turk Traktor’s total unit sales (domestic + export) rising by 16% y/y to 30.3k units. Although not indicative, Turk Traktor’s total tractor shipments rose by 55% in January 2020.Turk Traktor Ve Ziraat Makineleri is engaged in the manufacturing of agricultural machinery, such as tractors, harvesting machinery and earth moving machinery, and its allied parts, including gearboxes, transmission boxes, engine blocks, cylinder heads and hydraulic lifters. Co. sells New Holland and Case IH branded vehicles and equipments. Co. exports its products to over 50 countries.
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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