TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

BIST PARES LOSSES DESPITE SHAKEY START
" Despite a negative opening to the session amid the release of the hawkish FOMC Minutes, the BIST100 managed to pare its losses in the second half, closing the day 1.33% higher at 7765, but on a cautious turnover of TRY 133.8bn. Besides the 3.42% gains in the Transportation stocks, the gains were fairly balanced across the board, whereas the Mining stocks closed the day flat.
" ALARK, PGSUS and TUPRS were the most bought BIST30 stocks, whereas ENKAI, HEKTS and BIMAS were the most sold.
" Today, we expect a flat opening amid the negative trading in the Asian markets as the Japanese core inflation came in at 3.1% from the previous 3.3%, but headline rate remained at 3.3%, coupled with the embattled Chinese real estate giant Evergrande's filing for bankruptcy protection in the US.
" The TRY is currently trading flat against both the USD and the Euro at 27.10 and 29.48, respectively, while the DXY has retreated slightly to 103.36. Both the 2yr and 10yr rates rose by 73bps and 185bps yesterday to 17.92% and 19.28%, respectively.
" On the commodity front, Brent is trading slightly lower at USD 83.72 after seeing the USD 84 ticker due to China's vowed measures to stimulate the economy, and ounce and gram GOLD prices are trading slightly higher this morning at USD 1892 and TRY 1649, respectively.
" Fitch warned yesterday that rising interest rates remain main credit risks.
" Speaking at the General Assembly of the Turkish Banking Association, Minister Mehmet Simsek vowed to continue fiscal tightening and normalization process, and the head of the TBB, Mr. Alpaslan Cakar stated that the banking sector's aim is to support economic activity and lead the way in contributing to the progress of society by growing the financial sector in the Turkish lira.
" The 9 week buying of Turkish equities by Foreigners ended last week, as they were net SELLERs of USD 101mn STOCKS, but net BUYERS of USD 9mn BONDS.
AGENDA:
" The 12 mth expected inflation figures will be released on the home front, whereas the CPI figures from the Eurozone will be closely monitored.
2Q23 FINANCIAL RESULTS:
" BIMAS: SLIGTHLY POSITIVE: 2Q23 financials came out in line with market expectation with net sales and EBITDA of TRY57.8bn and TRY4.3mn respectively. EBITDA margin stood at 7.4% vs 6.1% of last quarter and 8.1% of 2Q22 also in line with estimated however net profit exceeded consensus by 17.4% mainly due to Competition Board penalty provision reversal of TRY359mn. EBITDA and net sales were also in line with our forecasted EBITDA of TRY4.1bn and net sales of TRY5.6bn. We continue to keep our BUY call on the stock considering the higher expected inflation going forward, the defensive structure of the grocery retail sector and the sector having a hedge against inflation.
" KRVGD: SLIGHTLY POSITIVE: The company posted EBITDA of TRY281mn (up 34% qoq and up 91% yoy) which was 19.3% above estimated. EBITDA margin evolved to 17.2% for the quarter vs 14% forecasted. Net sales came out in line with consensus at TRY1.6bn while net profit lagged consensus by 43% at TRY37.4mn.
" TCELL: POSITIVE: The company posted positive 2Q23 financials with EBITDA of TRY9.7bn exceeding expectations by 12.3%. Net sales came out in line with estimated at TRY20.9bn while net profit stood at TRY3.2bn, 7% above forecasted. Solid growth in turnover, limited costs increase, income from investments, the increasing number of subscribers and price related regulations supported the net profit. EBITDA margin for the quarter was 46.5% vs 41.1% consensus. We deem the results positive for the stock.
" ULKER: NEUTRAL: 2Q23 net sales stood at TRY9.5bn (down 6% qoq and up 59% yoy), 7.7% above consensus. EBITDA for the quarter however came out in line with estimated at TRY1.9bn (down 18.3% qoq and up 69% yoy) and EBITDA margin of 20.1% also stood in line with expectations. Net loss of TRY1.7bn was higher than consensus net loss of TRY1.5bn, it should be noted that deferred tax reversals supported bottom-line without which it would stand at TRY2.4bn.
CORPORATE NEWS:
" TUPRS: Disclosed that it will pay net TRY 6.77/share dividends as of September 29, 2023.
" GLYHO: Disclosed that July cruise ship count rose by 14% y/y.



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