Buy - Sell

BRSA on Banking Sector > Head of the BRSA stated significant interest in banking licenses from foreign parties, such as Intesa, Mitsubishi, Standard Charted, and Rabobank (all have been mentioned in recent news reports). He said the number of banks could eventually reach 60 (current 49) as licenses are granted to banks that fulfil BRSA’s criteria of strong reputation & financial means with $300m min equity requirement. Credibility & confidence, rather than competitive dynamics, are key in approval of banking licenses in our view & BRSA recently showed prudence in not approving the sale of Adabank.

 

TAVHL (BUY, TP TP12.50) => to take 15% stake in consortium to operate Zagreb Airport in Croatia for 30 years (equity contribution up to EUR15m). The consortium, which includes Aéroports de Paris, TAVHL’s largest shareholder, and Bouygues, a French industrial group won the in tender in April 2012. Terminal passenger traffic @ Zagreb Airport in 2011 was 2.3m (+12% y-y). Terminal has 2.5m nominal capacity. Reportedly, the consortium will be making a EUR236m investment in order to build a new terminal to expand traffic at the airport to 5m in the long-run. Comment: This is TAV’s first project with ADP and fits with its current portfolio of emerging market airports. We are not sure if the involvement will be appreciated by the market given the stake is below 20%, which most probably means the project will contribute to the bottom line +vely only if it pays out dividends.

 

DOAS (BUY, TP TL7.6) > Analyst meeting summary: 1) Guides for minimum 50% dividend payout ratio in 2013 (our est TL0.49/shr - 7.1% yield, cons: TL0.36/shr), 2) Says a normalization in market shr is likely in 2013, but there can be some upside to our est (Co guidance 13-14%, our 2013 est: 13.2%, 10M12 15.9%), 3) Mentions the increasing share of “equity income” in net income => 2013 equity income is likely to beat our est. We believe a rerating of equity investments could be the next driver of share performance, if supported via increase in visibility. More in a separate note.