4Q13 results were strong,
as we expected
In 4Q13, the company posted TRY75m net income, better than CBNC-e consensus (TRY65m) and absolutely in line with us, on lower-than-expected financial expenses. Operating performance was broadly in line with our and consensus expectations.
Bumper crop in 2013 and strong gov’t support helped demand
Despite a good start in the first two months, we believe that the effect of the ongoing drought on crop yields will be more pronounced and should start hurting tractor demand starting from April, despite government support for agriculture in the run-up to elections.
Cutting our estimates for tractor market by 12% for 2014
Apart from poor crop income, price increases by manufacturers are unavoidable. Costs of manufacturers have risen as the TRY has weakened remarkably despite some relief from raw material prices. Hence, we expect the tractor market to shrink 12% to 45,000 in 2014.
Cutting TP 9.5% on lower forecasts for Turk Traktor
We cut revenue and net income estimates by 6% and 10% for 2014 and by 2% for 2015. Our TP is based on a blended valuation, assigning 50/50 weights to DCF method and peer comparables.
In 4Q13, the company posted TRY75m net income, better than CBNC-e consensus (TRY65m) and absolutely in line with us, on lower-than-expected financial expenses. Operating performance was broadly in line with our and consensus expectations.
Bumper crop in 2013 and strong gov’t support helped demand
Despite a good start in the first two months, we believe that the effect of the ongoing drought on crop yields will be more pronounced and should start hurting tractor demand starting from April, despite government support for agriculture in the run-up to elections.
Cutting our estimates for tractor market by 12% for 2014
Apart from poor crop income, price increases by manufacturers are unavoidable. Costs of manufacturers have risen as the TRY has weakened remarkably despite some relief from raw material prices. Hence, we expect the tractor market to shrink 12% to 45,000 in 2014.
Cutting TP 9.5% on lower forecasts for Turk Traktor
We cut revenue and net income estimates by 6% and 10% for 2014 and by 2% for 2015. Our TP is based on a blended valuation, assigning 50/50 weights to DCF method and peer comparables.
Hiç yorum yok:
Yorum Gönder