Teb Yatirim - Tofas Turk Otomobil Fabrikasi A.S. (TOASO) Tofas Otomobil (TOASO TI) - Better 1Q19, higher 2019 guidance: Maintain Buy

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Teb Yatirim

Akif Dasıran

EUR 9.71 For Business Accounts Only

Tofas Otomobil (TOASO TI) - Better 1Q19, higher 2019 guidance: Maintain Buy

Tofas posted TRY325m net income in 1Q19, better than our estimate of TRY266m and RT consensus of TRY277m. Better-than-expected operating performance backed by take-or-pay compensation and effective cost management were the main reasons for the upbeat results in 1Q19.

Although Tofas recently cut shifts at its production facility (from 3 to 2), the company increased 2019 production guidance. We expect upbeat 1Q19 results and upward revision in 2019 guidance to underpin share price performance. We reiterate BUY on TOASO.

30/04/2019 1 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

Provider

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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Akif Dasıran

Akif Dasıran

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Tofas Otomobil (TOASO TI) - Better 1Q19, higher 2019 guidance: Maintain Buy

Turkish Autos

Top Picks Portfolio

Tofas

TURKEY STEEL - Strong outlook prevails

Turkcell (TCELL TI) - Investments on the rise: Maintain Hold

Ulker Biskuvi Sanayi (ULKER TI) - Proven resilience: Maintain Buy

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