Market Watch (Şeker Yatırım)

Market Watch - Tuesday, September 17, 2024

Outlook:
  
BIST100 Index, which started the week on a flattish course weakened throughout Monday to close on a decline of 1.12% at 9,577.46. The Industrial Index fell by 0.47% and the Banking Index lost 0.93%. The short-term outlook for the BIST remains weak. As part of the fight against inflation, the slowdown in the economy and weakening 3Q earnings expectations increase pressure on the BIST. Hence the BIST's volatile and weak course may continue in the short term due to the lack of a supporting story. Given the current outlook, caution should be exercised for leveraged and credit transactions. On the global front US, Asian and European stock markets followed mixed trends yesterday. This morning, German DAX futures are sellers, while US futures and Asian stock markets are mixed - the Chinese market is closed for a holiday. We expect to see a limited trading volume in global markets ahead of the Fed meeting. Domestically, the VIOP30 Index ended the evening session up 0.27%. We expect the Benchmark Index, which is likely to start the day horizontally, to continue its fluctuating course thereafter. SUPPORT: 9,500 - 9,420- RESISTANCE: 9,750 - 9,840

Money Market:
The Lira was negative yesterday, weakening 0.26% against the USD to close at 34.0184. The currency also depreciated by 0.45% against a basket of $0.50 and €0.50. Meanwhile, the local fixed income markets were negative. The ten-year benchmark bond yield fluctuated between a range of 28.88%-29.35%, closing the day at 29.27%, up 49 bps from the previous close.
 
Company News:
According to inflation accounting provisions (IAS-29), Turk Telekom (TTKOM.TI; OP) printed a net profit of TRY 1,419mn in 2Q24. (2Q23: TRY 3,623mn loss). Operational profitability is strengthened thanks to cost control. Meanwhile, TRY 780mn of net investment activity income and a TRY 5,139mn monetary gain supported net profit. The company also recorded TRY 6,556mn of net financial expenses and TRY 319mn tax expenses.
The company booked a net sales revenue of TRY 32,977mn adjusted for the IAS-29 effect. Despite the net subscriber loss, revenues rose by 4% YoY thanks to successful price adjustments. Fixed broadband and mobile operations accounted for 73.8% of the total revenues. The total increase of TRY 5.9bn in the revenues from these two business lines made a significant contribution to annual growth. Total subscribers decreased to 52.6mn with the loss of 110k in 2Q24. ARPU (Average Revenue Per User) has increased 14.8% in mobile blended and 5.7% in the broadband segment, yearly.
EBITDA came in at TRY 12,795mn, up 22% YoY, including the effect of IAS-29. The EBITDA margin was 38.8% in 2Q24 (2Q23: 33.3%).
Net debt remained flat... At the end of 2024/06, the company's net debt position remained at TRY 51bn. The net debt/EBITDA ratio remained at pretty low levels at 1.48x, indicating that there is no payment risk in the short term.
2024 guidance maintained: The company expects revenues to rise 11-13%, an EBITDA margin of 36-38% and capex/sales of 27-28% in 2024. (The company has determined its targets with the assumption of annual CPI at 42% by the end of 2024).
 



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  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.