İŞ INVESTMENT – Petkim Company News – 12.08.2016
Increased the limit of minimum guaranteed revenues in its recent campaign.
Emlak REIC announced that it has revised cash flow benefits of its recently launched campaign such that proceeds from down-payments and instalments within the next 12 months those are canalised to contractors’ accounts will not be exceeding 30% of minimum guaranteed revenues in each project vs. the previous boundary of 20%.
İŞ INVESTMENT – Petkim TI Company Update 2Q16 – 10.08.2016
Price (TL) : 2.89 – T.P.(TL) : 3.9 – Mcap.mn.(TL) : 10982 – 3M ADV(mn$) : 25.18
EKGYO TI Equity- Rec.:OUTPERFORM Upside%: 35.08 Analyst: [email protected]
Strong set of results in 2Q16
Emlak REIC announced TL454mn net earnings in its 2Q16 financials, beating the market expectation of TL351mn by 29% and corresponding to more than two-fold increase annually. Cumulative bottom-line realised at TL631mn in 1H16 vs. TL282mn recorded in the same period last year. Much higher than expected net sales figure, TL1,140mn vs. the market expectation of TL800mn and TL253mn in the previous year, bred the bottom-line beat in 2Q. Net financial income was supportive of the bottom-line with TL15mn pre-tax contribution in 2Q16 vs. TL2mn in 2Q15.
Separately, Emlak REIC announced presales figures for July. Accordingly, Emlak REIC had 244 presales units valuing at TL175mn, corresponding to 80% and 70% annual decreases, respectively. Cumulative presales units and revenues reached 2,887 units and TL1,901mn as of July, registering 51% and 47% respective decline on annual basis. Sales to foreigners accounted for 9% in both presales units and revenues.
We maintain our OUTPERFORM recommendation with a 12m target price of TL3.90/share, implying 35% upside potential. At its current market value, Emlak REIC trades at 40% discount to its NAV, in harmony with the industry average but higher than its historic NAV discount of 22%. We expect tstrong August presales figures driven by discount campaigns to offset weak July figures in 3Q.