WOOD Flash – Aselsan: quo vadis? New contracts, new products and upcoming transition to inflation accounting
In this flash note, we evaluate the recent newsflow on Aselsan’s latest contract wins, its new product launches and the recent management changes. We also offer our preliminary insights on the forthcoming impact of the IAS29 inflation accounting shift on Aselsan (slated to commence with the release of its FY23E financials in the coming weeks). Despite a strong surge (+45 % in TRY and 20% in USD terms) since our rating upgrade (6 September 2023), propelling the stock price close to our 12M price target (PT, TRY 56.40/share), we remain impressed with management’s 2H23 execution, surpassing both our and the market’s expectations in terms of new contract flows, as well as new product launches (especially in the radar and air defence systems segment). In our view, this presents some upside risk for both our and the consensus earnings and PT estimates. However, we will not make any changes to our valuation model and earnings estimates until after the release of the company’s first IAS29 inflation-adjusted FY23E financials in late-March/early-April.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
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