Teb Yatirim - Tofas Turk Otomobil Fabrikasi A.S. (TOASO) Tofas Otomobil (TOASO TI) - 4Q18 operationally better: Maintain Buy

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Teb Yatirim

Akif Dasıran

EUR 8.67 For Business Accounts Only

Tofas Otomobil (TOASO TI) - 4Q18 operationally better: Maintain Buy

Tofas posted TRY327m net income in 4Q18, slightly lower than RT consensus of TRY342m but better than our estimate of TRY305m. Although the operating performance was better than consensus, we beleive that the street was expecting higher FX gain in 4Q18. EBITDA was TRY641m, better than our estimate of TRY590m and much better than consensus of TRY574m.

Tofas is trading at 31% discount to its past 4 year average P/E and 33% discount to its past 4 year EV/EBITDA. We see upcoming new Doblo investment as a major trigger for re-rating of the stock and increasing capex guidance may hint for a start of this investment in 2019. Following 4Q18 results we slightly tweak our FY19-20 estimates, introduce 2021E, and maintain our DCF-based TP of TRY28. We reiterate BUY on TOASO.

08/02/2019 8 EN

Underlying

Tofas Turk Otomobil Fabrikasi A.S.

Turk Otomobil Fabrikasi is an automobile manufacturing group based in Turkey. Co. is engaged in manufacturing, assembly and trading of passenger cars and engines, equipment and spare parts. Co. manufactures passenger cars and light commercial vehicles at its plant near Bursa under licenses from Fiat Auto S.p.A. Co., which is a member of Koc Holding A.fi. and Fiat Group, also produces various automotive spare parts used in its automobiles. Co. manufacturing facilities are located in Bursa. Co. also is engaged in the production of Doblo modellight commercial vehicles in Turkey for Fiat.

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TRATOASO91H3 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

Akif Dasıran

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Tofas Otomobil (TOASO TI) - 4Q18 operationally better: Maintain Buy

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