Teb Yatirim - Tofas Turk Otomobil Fabrikasi A.S. (TOASO) Tofas Otomobil (TOASO TI) - Domestic demand resilient: Maintain Buy

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Teb Yatirim

Akif Dasıran

EUR 10.00 For Business Accounts Only

Tofas Otomobil (TOASO TI) - Domestic demand resilient: Maintain Buy

Tofas’s 3Q20 net income surged by 71% y-y to TRY510m, in-line with our estimate of TRY505m, but slightly lower than RT consensus of TRY536m.

We lower our 2020 and 2021 operating performance estimates but increase our net income estimates owing to lower effective tax rate. We increase our Rfr assumption by 100bp and revise our DCF based TP to TRY38 from TRY40.

Tofas’ strong market share in Turkey, where demand conditions are still strong, coupled with its EUR denominated export revenue, provides high earnings visibility, even during the pandemic, in our view. We maintain BUY on Tofas.

27/10/2020 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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Tofas Otomobil (TOASO TI) - Domestic demand resilient: 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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