Cuhadaroglu Metal (TFG Istanbul Menkul Değerler )

? Diversified Customer Base and Increasing Exports
The company produce
s aluminium profiles, facades, doors and windows
but it also deals with turnkey window, door and all aluminium architecture
applications of large projects as well . With exports making up 41% of
sales the company is increasing its foothold in international markets . Even
though export margin s do not differ from the domestic market , it
diversifies the revenue base
? Solid Demand Growth Necessitates Capacity Expansion
T
he company will be expanding its capacity d ue to fast growth stemming
from unexpected increase in demand. Higher capacity provides the room
to reap the benefits of continuing surge in orders. Capacity expansion is
also a confidence indicator for demand growt h.
? Changing Supply Chain Routes from Asia to Turkey.
Turkey’s aluminium rod and profile export volume increased
by 79% in
202 1 and 78% in H1 2022 . S upply chain disruption s in Asia favour s Turkey.
European companies have started to meet their aluminium needs from
Turkey due to freight production cost and proximity advantages Most of
CUSAN’s exports are to the EU . While a likely recession in EU may
temporarily hamper the demand, replacing the suppliers from China is set
to balance out the negatives for CUSAN in the short run, while upbeat
long term prospects remain intact
? Valuation appeal
Turkey’s skyrocketing aluminium rod & profile exports provide
d the
company a chance to diversify its revenue sources away from shrinki n g
construction sector in Turkey. We believe this change will be permanent.
Increasing exports revenue , demand growth and capacity increase plans
are the main drivers of company’s potential. Our DCF based valuation
model provides TRY 3 3 1 1 /share 1 year forwa rd looking target price for
the company implying an 100 upside potential at the latest market
price level. Buyback program announced in August 2022, which
corresponds to 1.3% of the market cap and dividend yield of 2 7 shows
the company’s approach to shareholder value generation. 2022
EV/EBITDA is 5 3 which indicates 35 discount to peers
 TFG Istanbul Menkul Değerler A.Ş.
  www.tfgistanbul.com/arastirma-raporlar
                           ***
                  Yasal Uyarı
 
 Burada yer alan yatırım bilgi, yorum ve tavsiyeler yatırım danışmanlığı kapsamında değildir.Yatırım danışmanlığı hizmeti ; aracı kurumlar, portföy yönetim şirketleri, mevduat kabul etmeyen bankalar ile müşteri arasında imzalanacak yatırım danışmanlığı sözleşmesi çerçevesinde sunulmaktadır.Burada yer alan yorum ve tavsiyeler, yorum ve tavsiyede bulunanların kişisel görüşlerine dayanmaktadır.Bu görüşler mali durumunuz ile risk ve getiri tercihlerinize uygun olmayabılır.Bu nedenle, sadece burada yer alan bilgilere dayanılarak yatırım kararı verilmesi beklentilerinize uygun sonuçlar doğurmayabilir.