SISE 2Q21 Earnings Call Key Takeaways
• Following its better than expected 2Q21 results, SISE management held a conference call in order to discuss the second quarter results and 2021 outlook. SISE management underlines that the solid outlook is expected to prevail in the upcoming quarters particularly in architectural glass segment, while the other segments have also strong outlook. On top of its strong operational outlook, SISE will continue its investments particularly in overseas markets (in Europe and the US). We maintain our positive view on SISE and keep our BUY recommendation with 12M TP of TL10.00..• Operating margins outlook… Following its growth in profitable segments and efficiency investments, SISE generated 20.8% EBITDA margin in last 5Y, compared to 19.1% for previous 5Y. In 2Q, SISE generated 26.2% EBITDA margin, up by 11.8-bps YoY and 2.7-bps QoQ, mainly due to strong growth in sales. So far in 3Q, the margin dynamics are strong, so SISE management guides similar EBITDA margin in 3Q, compared to previous quarter. For the long term, SISE targets to expand its EBITDA margin, considering the synergy from the merger and the contribution of value-added products.
• CAPEX: The company guides USD 300-350 mn capex for 2021E. SISE already announced 330k tonnes capacity glass packaging factory investment in Hungary this year and 2.7mn tonnes natural soda plant investment in the USA in 2019. Those factories are expected to be operational in 2023 and 2024, respectively.
Turkiye Sise ve Cam Fabrikalari is a holding company. Through its subsidiaries, Co. operates predominantly in the manufacture of glass and chemicals. Co.'s activities encompass all the areas of glass-making (flat glass, glassware, glass packaging and glass fiber) and soda ash and chromium chemicals. Co. consists of five operational divisions: flat glass, glass-ware, glass packaging, chemicals (soda ash products, chromium chemicals, glass fiber and unsaturated polyesters, industrial raw materials, electricity, steam, vitamin K3 derivatives and sodium metabisulfite), and export-import and insurance services.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.