Otokar (OTKAR TI) - Orders waiting for delivery: Maintain Buy
Otokar recorded a net loss of TRY11m, slightly better than our estimated TRY13m loss and in line with RT consensus. EBITDA came in at TRY9.9m, below our TRY11.2m estimate and RT consensus’s TRY13.5m. The bottom-line was supported by a TRY7.3m tax gain, which was the primary reason for the net profit outperformance despite slightly weaker-than-expected operational performance. Revenues came in at TRY419m, lower than our TRY462m estimate but closer to RT consensus’s TRY408m.
We only adjust our valuation slightly to reflect the 1Q19 changes in net debt figure but do not make any changes to our estimates. Otokar’s transition story is still underway and we continue to see significant upside potential for the company as sales and earnings continue to accelerate.
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.
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