Vestel Beyaz: Tailwinds continuing into 3Q (stays HOLD)
With a 70ppts outperformance of the BIST100 since its March 2020 lows, we have updated our forecasts for Vestel Beyaz (VESBE), while retaining our HOLD rating, with a new price target (PT) of TRY 32.0/share. The faster-than-expected market recovery in Europe and the resilient domestic market should deliver 5% unit sales growth for VESBE, in our view, in FY20E. This, coupled with expected EBITDA margin growth of 200bps yoy, due to the softer raw materials environment and the weaker EUR/TRY, makes VESBE our preferred pick in the Turkish white goods (WG) space (over Arçelik). On our 2020E EV/EBITDA numbers, VESBE trades at 5.0x, implying a 26% discount vs. Arçelik (a 21% discount vs. the consensus).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%.
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.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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