BGC Partners - YATAS (Company Update - BUY (maintained), 41% upside)
Unjustified weakness after softer 3Q19… In 3Q19, Yatas posted 13.0% EBITDA margin, a lower figure vs. 2Q19’s 16.3% due mainly to 1) weaker revenues in July (sales were front-loaded to June as VAT cut to 8% from 18% ended at June-end), 2) deliberate delay in Divan’s store openings, 3) higher opex due to the move of the headquarters (one-off expense). Shares underperformed the index by 7% in the last month which we find unjustified as 1) a strong 4Q19 is expected (monthly figures indicate a robust quarter), 2) no change in long-term targets (Divan will accelerate in 2020), 3) favorable outlook thanks to declining interest rates and demographics, and 4) attractive multiples for 2020 and onwardsYatas Yatak ve Yorgan Sanayi Ticaret AS is a Turkey-based company engaged in the manufacture and marketing furniture and other related home furnishing products. The Company's products include bedroom, living room, children's room and dining room furniture, bedspreads, bedding sets, pillows, pillow covers, sleeping bags, towels and bathrobes, mattresses, quilts and blankets. Yatas Yatak ve Yorgan Sanayi Ticaret As operates three manufacturing plants in Kayseri and Ankara, and has over 400 sale points, as well as a regional office in Ankara. The Company exports its products to over 45 countries, including the United States, the United Kingdom, the Netherlands, Germany, Hungary, Bulgaria, Kenya, Russia, Romania and North Cyprus. As of December 31, 2010, the Company had two affiliates: Kay-Ser AS and Valya Mobilya Uretim AS.
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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