Teb Yatirim - Tekfen Holding (TKFEN) Tekfen Holding (TKFEN TI) - Weak contracting outlook: Downgrading to Hold

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Teb Yatirim

Erdem Kaylı

EUR 10.00 For Business Accounts Only

Tekfen Holding (TKFEN TI) - Weak contracting outlook: Downgrading to Hold

In this report, we incorporate our weak contracting outlook and updated macro view into our forecasts. Accordingly, we cut our 12M TP by 42% to TRY14.68 and downgrade our call to HOLD from Buy. Based on a significant decline in its net cash position and a muted contracting outlook, we think investor appetite for the stock would be limited.

Tekfen reported a net loss of TRY15m in 3Q20, lower than BNPPe/RT consensus estimate of a profit of TRY18m/TRY189m. EBITDA (excl. profit from affiliates) of TRY10m undershot our estimate of TRY125m and RT consensus estimate of TRY251m, driven by the loss-making projects of the contracting division.

26/10/2020 1 EN

Underlying

Tekfen Holding

Tekfen Holding conducts its operations in four main business segments: Contracting, Agriculture, Real Estate and Other operations. Contracting group focuses on construction of petroleum and gas facilities, land and sea terminals, offshore platforms and tank farms. Agricultural group has operations in chemical fertilizer, ground and vegetable grain, production, distribution and trade of seedling and sapling. Real estate group operates in designing, constructing, renting, and sale of real estates such as residents, offices, shopping centers and hotels. Operations of other segment comprise of light-pulp trading, cotton yarn production and trading, insurance services and holding operations.

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TRETKHO00012 Istanbul Stock Exchange Turkey

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Teb Yatirim

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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Analysts

Erdem Kaylı

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Tekfen Holding (TKFEN TI) - Weak contracting outlook: Downgrading to Hold

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