Otokar (OTKAR TI) - 4Q18 significantly better: Maintain Buy
Otokar’s net profit came in at TRY250m, above our off-consensus expectation of TRY196m and significantly better than the TRY174m RT consensus. Higher revenue and higher operational profitability were the main factors driving the better-than-expected net profit as revenues and EBITDA were better than both our expectation and the RT consensus. Revenue was TRY870m vs. our TRY833m expectation and TRY813m RT consensus, while EBITDA came in at TRY232m vs. our TRY202m expectation and TRY198m RT consensus. We decrease our net debt figures in our DCF model to reflect stronger-than-expected earnings and higher cash injection into the company and as such increase our 12m TP from TRY117.80 to TRY122. We maintain our BUY recommendation on the stock.
Otokar Otomotive Ve Savunma Sanavi is engaged in the import, manufacture, assembly, sale and export of bodies, engines, and all other components of all kinds of land, sea and air defense vehicles, as well as security vehicles, commercial buses, trucks, minibuses, midibuses, panel vans, cross-country vehicles, etc. Co.'s primary focus is on the production of Land Rover 4x4 and minibuses.
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.