Enka Insaat (ENKAI TI) - Boosted by Mark-to-market gains: Maintain Buy
Enka’s 2Q19 net income of TRY1b beat our/Research Turkey consensus estimate of TRY571m/ TRY701m on higher than expected mark-to-market (MTM) gains on fixed-income investments and a lower effective tax rate of 15%. Operationally, 2Q19 EBITDA of TRY623m was in-line with our estimate of TRY615m (vs. consensus of TRY702m). In 2Q19, Enka booked TRY851m income from its financial investments.
Despite a lack of catalysts, we retain BUY on Enka as it offers solid cash flows in the midst of challenging market dynamics. Apart from this, we see a dismal earnings outlook at the energy segment for 2019 as operations of all the plants have been currently suspended for now.
Enka Insaat ve Sanayi is an engineering and construction company. Co. operates in the following geographical areas: in Turkey, Co. is engaged in a range of construction activities including construction of industrial and social buildings, motorways and construction and operation of natural gas fired electrical energy generation facilities; in Russian Federation, Georgia, Turkmenistan and Kazakhstan, Co. is engaged in construction activities and also in investment and development of real estate properties and shopping malls in Moscow, Russia; and in Europe, Co. is engaged in construction and trading activities in Romania, the Netherlands, Switzerland, Germany and Kosovo.
TEB Investment equity research analysts and strategist team consists of 8 analysts with an average finance sector experience of 15 years and special focus on international investors.
With our 6 equity research analysts we cover 93 companies across 21 sectors, reflecting 80% of the total market capitalization of all BIST companies and 86% of the BIST100 companies. Our strategy team provides in depth top-down and bottom-up market views with insight on FX and bond markets by publishing sectoral and strategic reports both in English and Turkish.
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.