Business

Tofaş Fourth Quarter Financial Results

Financial Results 4Q20

The latest financial results of the company correspond to the period 2020/12. Based on these results, the company:

Net sales increased 34.1% in the 4th quarter compared to the prior quarter. It reached 9.2 billion TL with an increase of 68.2% compared to the same quarter of the previous year. In 2020, its net sales increased 24.7% compared to the previous year and reached TL 23.6 billion.

EBITDA increased 43.6% in the 4th quarter compared to the previous quarter. It reached TL 1,100 million with an increase of 67.1% compared to the same quarter of the previous year. In 2020, it was realized as 3 billion TL with an increase of 22.0% compared to the previous year.

EBITDA margin increased 80 basis points in the 4th quarter compared to the previous quarter. It became 12.1% with a decrease of 8 basis points compared to the same quarter of the previous year. In 2020, it was realized as 12.8% with a decrease of 28 basis points compared to the previous year.

Net profit increased 25.25% in the 4th quarter compared to the prior quarter. With an increase of 41.9% compared to the same quarter of the previous year, it went to TL 639.2 million. In 2020, its net profit increased by 20.4% compared to the previous year and reached TL 1.8 billion.

Net debt decreased by 22.7% to TL 2.4 billion in the fourth quarter compared to the previous quarter.

Outcome:

In 4Q20, the company had sales revenues of 9,198 mn TL (conc: 8,196 mn TL-Gedik: 8,012 mn TL), 1,111 mn TL EBITDA (conc: 904 mn TL-Gedik: 828 mn TL) and 639 mn TL profit net (conc: 670 mn TL-Gedik: 653 mn TL). Domestic sales revenue increased 113% annually to TL 5.1 billion. In 4Q20, the company’s domestic light vehicle sales volume increased 48% year-on-year to 51 thousand units, while the domestic market grew 41%. Sales of cars and light commercial vehicles in the domestic market increased 43% and 59%, respectively, to 36 thousand and 15 thousand units. The company’s market share increased from 17.5% to 18.3%. Export revenue increased 33% annually to TL 4.1 billion. Automobiles, light commercial vehicles and the company’s total exports decreased 29%, increased 26% and 8%, respectively, reaching 19 thousand units, 21 thousand units and 40 thousand units. Thus, in 4Q20, total sales volume increased 17% annually to 91 thousand units, while the share of export revenues in total revenues decreased from 56% to 45%. Although the company’s EBITDA margin remained stable in 4Q20, its net income increased significantly with strong growth in sales. The company shared its predictions for 2021. According to this; domestic market of light vehicles (PC + LCV) (units) 700-750 thousand (annual decrease of 3-9%); Sales in the domestic market of Tofaş (units) 120-135 thousand (annual decrease 5-15%), export volume 150-165 thousand (annual increase 27-40%), total production units 265-290 thousand (annual increase 4-16%) and investments are projected at 100 million euros (2020 real: 180 million euros). The stock is trading 6.4x FD / EBITDA in line with 2021 expectations. We view the impact of the solid announced financial results above expectations on the stock as limited positive.

Tofaş (TOASO)

Proposal: KEEP

Last closing: 38.32

Target price: 3. 4, 26

Potential return: % -11º

LEGAL WARNING

The investment information, comments, and recommendations contained in this document are not within the scope of investment consulting. The investment consulting service is offered within the framework of an investment consulting contract to be signed between brokerage houses, portfolio management companies, banks that do not accept deposits and the client. The comments and recommendations contained herein are based on the personal opinions of those who make comments and recommendations. These views may not be appropriate for your financial situation and risk and return preferences. For this reason, making an investment decision based solely on the information contained in this document may not produce results in accordance with your expectations.

Gedik investment

!function(f,b,e,v,n,t,s)
if(f.fbq)return;n=f.fbq=function()n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments);
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)(window,document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘226201484792800’);
fbq(‘track’, ‘PageView’);
(function(d, s, id)
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src = “https://connect.facebook.net/tr_TR/sdk.js#xfbml=1&appId=1074496312582741&version=v2.3”;
fjs.parentNode.insertBefore(js, fjs);
(document, ‘script’, ‘facebook-jssdk’));

Source: www.paraanaliz.com

Leave a Reply

Your email address will not be published. Required fields are marked *