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.
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.
Last closing: 38.32
Target price: 3. 4, 26
Potential return: % -11º
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