Report
Akif Dasıran
EUR 9.24 For Business Accounts Only

TURKEY CONSUMER - Vestel Group looking for new markets to grow

We met with Vestel Group (VESTL and VESBE) IR team last week. The key takeaways are: 1) export volume growth is intact in the white goods segment thanks to new clients and projects (both ODM and branded sales) coupled with a recovery in exports in the TV segment, 2) the company took some actions recently to respond to competition and stem its market share loss in Turkey but their focus on profitability remains intact, 3) raw material prices are still low and the group expects a further easing in steel and plastic prices in 2H19, 4) the group is looking for new markets to grow and USA is one of the targets, 5) the TRY move will determine 2H19 profitability, 6) non-deal Brexit is the main risk for exports to UK, and 7) the Group is in talks with A brand customers for new projects in the white goods segment, which, as per the group, may boost export volumes in the future.

Underlyings
Vestel Beyaz Esya Sanayi ve Ticaret

Vestel Beyaz Esya Sanayi ve Ticaret AS (Vestel Beyaz Esya) is a Turkey-based manufacturer of home appliances, including no-frost, double door, and single door, refrigerators; washing machines with different capacities; air conditioners; ovens with different functions, and dishwashers. The Company operates production facilities in Manisa and Turkey. The Company's marketing and sales activities are carried out by two other group companies, Vestel Dayanikli Tuketim Mallari Pazarlama AS and Vestel Dis Ticaret AS. Vestel Beyaz Esya is a subsidiary of Vestel Group. In January 2014, Vestel Elektronik Sanayi ve Ticaret AS, increased its stake in the Company to 92.6%.

Vestel Elektronik Sanayi Ve Ticaret A.S.

Vestel Elektronik Sanayi ve Ticaret is a consumer electronics, white goods, and digital products company based in Turkey. Co. is engaged in producing electronic instruments, devices, equipments, spare parts, tools, components, videos and colour televisions throughout Turkey and Europe. Co. operates within three divisions: television production; refrigerator, air conditioning units, washing machines and cookers; and digital devices. Co.'s production facilities are located in Manisa industrial site (Aegean Region, Turkey), Vladimir Region, Russia and Izmir Aegean free zone industrial site.

Provider
Teb Yatirim
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.

Analysts
Akif Dasıran

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