Enka Insaat (ENKAI TI) - Overshadowed by energy segment: Maintain Buy
Enka Insaat reported 1Q19 net income of TRY835m, higher than our estimate of TRY607m and Research Turkey’s TRY502m. The strong bottom-line was due to the higher-than-expected mark-to-market gains of fixed-income investments and lower effective tax rate of 14% in 1Q19. Operationally, 1Q19 EBITDA of TRY754m undershot our estimate of TRY839m on weaker energy segment profitability (vs. Research Turkey’s TRY725m). In 1Q19, it booked net income of TRY391m from its financial investments.
Despite the lack of catalysts, we keep our BUY call on Enka Insaat as it offers solid cash flow in the midst of challenging market dynamics. We see weaker earnings momentum in the energy segment by 2019 which could be potentially offset by new orders in the contracting segment.
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.