TFG Istanbul Morning Report (TFG Istanbul Menkul Değerler )

GROUND-OPERATION DELAY SPURS RISK-ON
• The BIST100 managed to continue its previous day's risk-on mode, thanks particularly to the much better than expected financial results from YKBNK, encouraging investors to buy into the hype and spur the Banking stocks, as well as OTKAR, thus elevating the gauge 3.10% higher to 7990, and with a welcomed high turnover of TRY 127.1bn.
• The Banks were the most bought stocks yesterday, fueled by the "out of this world" financial results, and followed by the Energy and Industrial stocks, while the Transportation stocks took a breather and lagged behind their peers.
• ISCTR-EREGL (due to expectations of the insurance payment to its steel subsidiary ISDMR, that was damaged at the Feb 6, 2023 earthquake) and GARAN, were the most bought blue-chips, while TOASO, FROTO and TUPRS, albeit closing positively, were less enthusiastically bought compared to their peers.
• As of yesterday's session closing figures, the TRY is trading flat at 28.12 against the USD and 29.81 against the Euro, while the DXY has fallen to 106.18.
• On the commodity side, Brent is continuing to fall, currently hovering just below the $87 level, and ounce and gram GOLD prices are flat at $1972 and TRY 1783, respectively.
• The US PMI figures rose to 51 vs the 50 estimate, thus signifying growth for being over the 50 threshold level.
• Yesterday, JP Morgan CEO Jaime Dimon warned about the dangers of locking in an outlook about the economy, particularly considering the poor recent track record of central banks like the Federal Reserve, stating "“Prepare for possibilities and probabilities, not calling one course of action, since I’ve never seen anyone call it.”
• The ECB President, Christine Lagarde Sees ECB’s the battle against inflation going well ahead of the policy meeting, but sees downside risks to stagnating economy, and the lack of a regional deal on fiscal rules is turning into a headache.
• The October Eurozone PMI figures neared their 3yr low levels, thus stirring concerns of a recession, coming in at 43.0, vs the expected 43.7, and down by 0.4pts compared to the previous month.
AGENDA
• On the local front, the Capacity Utilization Rate and Real Sector Consumer Confidence will be released while Germany will be releasing the IFO Index, and our friends across the pond will disclose their New Home Sales, and Fed Chairman Jerome Powell is expected to speak today. AYGAZ (Est: TRY 1.873bn); FROTO (Est: TRY 9.264bn); TOASO (Est: TRY 4.589bn); TUPRS (Est: TRY 18.163bn); TURGS (Est: TRY 2.119bn).
3Q23 RESULTS
AKCNS - NEUTRAL: Akcansa’s 3Q23 net profit surpassed the consensus by 21% to reach TRY1.3bn. However, the whole beat stemmed from deferred tax income. Net sales and net profit are within expectations range. Any upmove based on higher profit should be used for profit taking in our view as construction sector theme continues to weaken.
 
TAVHL - NEUTRAL: TAV’s 3Q23 EBITDA and net profit surpassed the expectations by 5% and 9% respectively. Net profit beat could have been a mere 4% when adjusted for deferred tax income. The EBITDA margin came strong at 43% vs 39% expectation predominantly due to 4% lower than expected top-line.
 
TTRAK - NEUTRAL: Turk Traktor’s 3Q23 revenues are 8% below the expectations while EBITDA is in line. Net profit surpassed the consensus by 6% thanks to deferred tax income, which apperantly is the ey theme of the quarter.
 
YYLGD - NEGATIVE: Yayla Gida’s EBITDA is 9% below the consensus while the revenues are in line. EBITDA margin is realised 1pp below the expectations at 12%. The TRY516mn net profit is also 5% below the consensus mean. The company’s net debt/EBITDA surged to an all time high of 3.3x from only 0.9x a year earlier. Trading at 14x P/E and 20x EV/EBITDA, we believe that the stock is fully priced.
CORPORATE
• ARCLK - Received unconditional approval from the EU for its Whirlpool deal.
• BSOKE - The company decided to increase its registered capital ceiling from 800 million TL to 2 billion TL.
• DERHL - Reported a fund raise of 75.4 million TL from a capital increase and company's subsidiary, Emiliano Zapata Giyim, decided to increase its capital from 40 million TL to 114 million TL.
• FONET - The company disclosed that it submitted the highest bid of 48.2 million TL for a 36-month SBYS tender launched by the Denizli Provincial Health Directorate.
• KONTR - The company signed a contract worth 19.0 million dollars with a foreign client.
• PETKM-Disclosed that the raw materials procurement agreement with Socar regarding the STAR Refinery had been extended, without a minimum purchase clause by PETKM. STAR Refinery will also pay dividends to PETKM.
• TKFEN - The company's subsidiary, Tekfen İnşaat, won a bid for a project in Romania, but after an objection was raised, another bidder was awarded the project.
• YEOTK - A 1.6 million dollar GES agreement was signed with ENJSA.
• ZOREN - In Austria, the company announced the establishment of Electrip Austria GmbH, fully owned by the company's indirect subsidiary, Electrip Global B.V., based in the Netherlands.

 TFG Istanbul Menkul Değerler A.Ş.
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                  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.