Migros Ticaret (MGROS TI) - 4Q: Impairment losses battered NI: Maintain Buy
Migros posted TRY359m net income in 4Q18, worse than Research Turkey consensus of TRY482m and our estimate of TRY517m. Although the operating performance was better than expected, TRY134m impairment loss and lower than expected FX gain were the main reasons for lower-than-expected bottom-line.
As the operating performance was better than expected and 2019 guidance is in-line with our estimate, we maintain BUY on MGROS. Nevertheless, worse-than-expected bottom-line may weigh on share price performance in the very short term.
Migros Ticaret is a retailing group based in Turkey. Co. offers spacious stores in a wide range of formats and locations whose vast selection of stationery, glass and kitchenware, appliance, book, clothing, and other items along with groceries and other necessities. Co. maintains a store network of 1,004 national and international locations with a national presence in 70 provinces in Turkey's seven geographical regions. Store brand names include M, MM, MMM, 5M, MigroJet, Tansas, Macrocenter and Ramstores. Co. also provides customers alternatives such as internet, call centers, kiosks, catalogues, and mobile shopping networks.
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.
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