KCHOL Teleconferance Call Notes (Oyak Yatırım)

We held a teleconference meeting with Koc Holding (KCHOL). The highlights of the teleconference are as follows:

• 55% of the company's revenues are denominated in FX and it has net cash of 352 million dollars.
• S&P recently revised the company's rating one notch higher than Turkey's rating.
• They expect exports to be at the forefront in the 2nd half of the year. Especially the auto side (FROTO) can be positively differentiated in this respect.
• Margins are doing well at TUPRS. The company has a target of $11-12 net refinery margin for 2023.
• Mandate has been given for the TATGD sale process.
• ARCLK Recession in Europe reduces demand. Dividend payment will be in September.
• FROTO and TUPRS have good cash position. Dividend 2nd installment will be decided after 2Q results.
• TTRAK sales are going well, the continuation of the advantageous loan campaign keeps supporting sales.
• In the valuation report prepared for the transfer of KFS shares owned by AYGAZ to Koc Holding (expected to be completed in September), the fixed assets belonging to Koc Holding were valued at 11.6 billion TL after tax. When fixed assets are included, the company's NAD discount increases by 1.6 points. Our target price is positively affected by 2.3%.

We like KCHOL. The company is trading at a 33.3% discount to NAD. We have a target price of 121.32TL for the company.


Oyak Yatırım Menkul Değerler A.Ş.
                                   ***
                               Yasal Uyarı
 
 Burada yer alan yatırım bilgi, yorum ve tavsiyeler yatırım danışmanlığı kapsamında değildir.Yatırım danışmanlığı hizmeti ; aracı kurumlar, portföy yönetim şirketleri, mevduat kabul etmeyen bankalar ile müşteri arasında imzalanacak yatırım danışmanlığı sözleşmesi çerçevesinde sunulmaktadır.Burada yer alan yorum ve tavsiyeler, yorum ve tavsiyede bulunanların kişisel görüşlerine dayanmaktadır.Bu görüşler mali durumunuz ile risk ve getiri tercihlerinize uygun olmayabılır.Bu nedenle, sadece burada yer alan bilgilere dayanılarak yatırım kararı verilmesi beklentilerinize uygun sonuçlar doğurmayabilir.