Klımasan (TFG Istanbul Menkul Değerler )

Higher Margins are Not Priced In

The company produces industrial coolers-freezers and sells these products to domestic and foreign markets. Its main products are beverage and beer coolers, water coolers, ice cream and frozen food coolers.
Klimasan manufacturing plant in Turkey has a capacity of over 812,000 units/year and supplies 165 products to over 1600 customers in over 100 countries. Around 45% of the sales volume is generated from blue chip clients like Coca Cola, Unilever, Nestle. Partnerships with the top global soft drink, ice-cream and beer companies verify production quality while providing sustainable turnover. Diversified revenue channels both in terms of customers and geography minimize the impact of geographical and sector-specific disruptions. While exports make up 56% of the sales as of 9M22, we believe that it will be lifted up to 65-70% range in three years. More than 90% of the sales are made in hard currency,

Higher share of more value-added products and decreasing OPEX/Sales ratio lifted up the EBITDA Margin to 15% in 2021, despite the unfavourable macroeconomic conditions like supply chain disruptions, higher freight rates, higher raw material costs and higher energy prices. While the margin has somewhat eased in the past couple of quarters due to maintenance, we believe that the EBITDA margin to recover back up to 15% in the final quarter. In order to be conservative in our valuation, we forecasted margins at lower end at 14%. Our DCF based valuation model provides TRY 36.4/share 1 year forward looking target price for the company, implying an 94% upside potential at the latest market price level. TTM EV/EBITDA is just 6.3 which indicates 9% discount to peers


 TFG Istanbul Menkul Değerler A.Ş.
  www.tfgistanbul.com/arastirma-raporlar
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                  Yasal Uyarı
 
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