RESEARCH June 18, 2015 Overcome your fear of flying Turkey - Sector - Airlines Baris Ince +90 (212) 384 1141 [email protected]Sales Contact: +90 (212) 384 1155 [email protected]Please see the last page of this report for important disclosures. Passenger trends: Turkish passenger numbers grew by 8% YoY in 5M15 with the growth of 11% in domestic passenger numbers vs. 4% in international passengers. The growth was 7% at Istanbul Ataturk Airport (IAA) vs. 18% at Sabiha Gokcen Airport (SAW). In 5M15, Turkish Airlines (THY) increased its total pax figure by 9% on annual basis while that of Pegasus Airlines (Pegasus) was 11% in 1Q15. We assume a 10% pax growth for THY vs. 12% for Pegasus in 2015. We maintain our projection of 10% passenger growth for the f ull year of 2015 in Turkey. We assume a 9% CAGR in Turkish air passenger traffic between 2014 -17E. Despite benefiting from Turkey’s geographical position and the government’s supportive approach to the sector, we believe sector growth may come under pressur e in 2016 rather than in 2015, as IAA and SAW (together covering 47% of total pax in Turkey) are close to reaching their full capacity. Work on an expansion of IAA started in late 2014, with a scheduled completion of 1H16, which is expected to boost capacity at the airport by 10mn. Meanwhile, the contract of the second runaway construction at SAW, which doubles capacity, is expected to be signed this year. Unit revenues and costs: From 2H13 to 1H14, we had seen a stiff competition in the sector, with the increased presence of THY at SAW, Pegasus’ hub, following the capacity constraints at IAA. Both airlines targeted to benefit from strong demand in domesti c market by offering lower prices. In addition, there was an increased competition from major Gulf and European carriers on international side as they introduced new capacities. There were other reasons behind the weakness in revenue yields such as the political tensions in Russia and Ukraine and depreciation in some local currencies worldwide. Accordingly, we observed a decline of 4% in the RASK (Total Rev enue/ ASK) for THY (USD) and 7% for Pegasus (EUR) in 2014. On the cost front, THY’s CASK (Total Costs/ASK) declined by 3% (USD) an d Pegasus’s CASK was down by 4% (EUR) in 2014. For 2015, we forecast the RASK to fall by 13% for THY (down by 12% in 1Q15) and by 1% (up by 7% in 1Q15) for Pegasus, respectively, while forecasting a 11% decline (down by 13% in 1Q15) in THY’s CASK on lo wer fuel costs; yet a 3% increase (up by 1% in 1Q15) for Pegasus due to the exchange rate impact, changes in the fleet mix and r amp handling investments. Guidance: THY management targets US$12bn in revenues (GS forecast: US$11.2bn), carrying 63mn passengers (GS forecast: 60m) while guiding for an increase in its ASK to 157bn (GS forecast:157bn) with an 80.3% load factor (GS forecast: 77.9%). Pegas us foresees 17-19% growth in ASK and 15-17% growth in pax figures with the load factor expected to remain stable with flat yields. Our forecasts appear broadly inline with the management guidance except our lower 12% pax growth assumption. Pegasus management guides for a 3-4% increase in CASK in 2015 with our forecast of a 3% increase in CASK. We conservatively assume Pegasus’s EBITDAR margin to be 18.5% in 2015 vs. the guidance of 19-21%. Themes in 2015: We currently identify two main themes surrounding airline stocks; oil prices and the EUR/USD rate. We believe that the market has overlooked the potential benefits of falling oil prices, and remaining overly skittish about the sliding EUR. Considering the c.60% hedging level for European carriers and near zero level for Gulf carriers, we believe Turkish air carriers with c.45% h edge ratio are well positioned to benefit from the demand in the sector given Istanbul’s geographically advantageous position. Based on our assumptions, each $5/bbl change in Brent crude prices would have an impact of 10% on THY’s 2015E EBITDA and a 12% impact on Pegasus’s EBITDA while each 1% change in the EUR/USD rate would have a 5% impact on the 2015E EBITDA for THY and a 3% impact on Pegasus. Both Pegasus and THY have recently converted international ticket sales originating in Turkey to USD from EUR, those sales account for c13% and c15% of their annual revenue, respectively. THY has added an average of 30 aircrafts to its fleet each year since 2012, and plans to add 42 planes in 2015 (most of them in 1H15). That means related employees would be recruited f or the training purposes couple months ahead of the aircraft being delivered, which may put margins under pressure in 2015. Yet, we did not observed such a cost overruns in 1Q15 for THY (in fact, there was a 5.3% YoY decline in personnel costs in terms of ASK, see page 12). In addition, given the capacity constraints at IAA, THY will transfer 28 of its aircraft to SAW, and plans to increase its market share at Istanbul’s 2nd airport to 25% in 2015 from 20% in 2014, adding to the already stiff competition there. We prefer THY over Pegasus on the back of i) potential competition from THY at Pegasus’s main hub, iii) Pegasus’s limited visibility on international expan sion and iii) the short term headwinds on cost side for Pegasus. THY looks cheap compared to peers on 2015 and 2016 P/E and EV/ EBITDA while Pegasu s does not for 2015. Valuation: Given 1Q15 results and YTD traffic trends, we have revisited our forecasts with new assumptions for the macro-economy, oil prices (USD61/bbl vs. USD68/bbl previously) and exchange rates (2015 average EUR/USD now assumed as 1.11, vs. 1.20 previously), we have cut our 2015 EBITDA margin forecasts by 0.6 pps for THY and 2.4 pps for Pegasus. Our valuation for airlines is based on a target 2015 EV/EBITDAR multiple (7.0x for THY and 7.8x for Pegasus). Accordingly, we decreased our 12 month forward target sh are prices for THY by 5% to TL11.25, and by 20% to TL31.65 for Pegasus. We maintain our Outperform recommendation for the both stock. Risks: A slowdown in passenger growth momentum, weaker than expected unit revenues or a deteriorating cost base are the key risks for airlines. A potential sale by shareholders would lead to share price weakness for the carriers. Company Ticker Mcap 3M Avg Volume Upside Old New (TLmn) (TLmn) Old New (%) 2015E 2016E 2015E 2016E 1M 3M YTD Pegasus Airlines PGSUS Outperform Outperform 2,567 45 39.80 31.65 26% 7.3 6.4 13.5 9.2 3% 3% -20% Turkish Airlines THYAO Outperform Outperform 12,213 216 11.90 11.25 27% 6.7 6.1 6.8 7.4 -1% 1% -2% Source: Garanti Securities Target Price (TL) Recommendation EV/EBITDAR P/E BIST-100 Relative Performances
26
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Overcome your fear of flying - GARANTİ YATIRIM · 3 RESEARCH Pegasus Airlines Recommendation: OUTPERFORM. Given its proven track record on growth, we believe that Pegasus stands
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RECOMMENDATIONS & VALUATIONS THY Recommendation: OUTPERFORM. THY has differentiated itself on the basis of service quality and competitiveness in recent years. Istanbul’s geographical advantage and the airline’s relatively low
labour costs (especially when compared to European carriers) enhance THY’s competitiveness. As
an emerging international travel hub, Istanbul is in the position of enabling the airline to boost its transit passenger numbers and better utilize the fleet (especially its narrow body aircraft) and seat
capacity. With a young fleet (7 years on average), improved brand awareness and increased
capacity, THY is in a position to capture market share from EU carriers, which struggle to offer high quality service and capacity additions with their relatively old fleets. THY shares have
underperformed the index by 2% YTD and now trade at a 36% and 22% discount to its peer group
on the basis of its 2015E P/E and 2015 EV/EBITDA.
Risks. A decline in the economic activity, rising oil prices, Euro weakness against the Dollar and the Privatization Administration’s sale of its stake in THY pose risks. Geopolitical tensions could also
emerge as a risk.
New 12 month forward target price of TL11.25/share vs. TL11.90/share previously. Our 12
month forward target share price of TL11.25 derived f rom our target EV/EBITDAR multiple offers 27% upside potential for THY. Our valuation for THY is based on the 2015E target EV/EBITDAR
multiple. To reach our target Mcap, we adjusted net debt to 7x aircraft related rental expenses and
current PDP receivables. We employed a 7.0x target multiple for THY, which is the historical average EV/EBITDAR multiple.
Pegasus Airlines Recommendation: OUTPERFORM. Given its proven track record on growth, we believe that Pegasus stands out as a preferred play in an underpenetrated sector coupled with its ambitious
expansion plans and effective cost management. As the number one LCC and second largest carrier in Turkey, Pegasus will be one of the key beneficiaries of increasing GDP and attractive
demographics, which bodes well for discount carriers. Using Istanbul Sabiha Gokcen Airport (SAW)
as its main hub, Pegasus differentiates itself f rom an ordinary LCC whose business models are based on only point to point travel; Pegasus operates like both a network and point to point carrier,
thanks to Istanbul’s geographical advantage connecting 50 countries within a 3 hour flight.
Furthermore, we think Pegasus’ low cost management enables the airline to boast one of the lowest CASK levels on the back of its young fleet and low labour costs. Despite our conservative
assumptions given the likely increased competition and cost pressures f rom exchange rates, the
changes in the fleet and ramp handling investments, we believe the current levels offer a good entry point to accumulate the stock for the long-term investors. We maintain our recommendation for
Pegasus as Outperform.
Risks. The key risks would be an increase in oil prices, unrest in Turkey and neighbouring countries,
stiff competition, limited international expansion and EUR weakness against the USD. About 14.5%
of Pegasus shares were registered to the Central Securities Depository in mid-February 2015 with no intention for immediate sale, yet a potential stake sale could result in an overhang for the shares.
New 12 month forward target price of TL31.65/share vs. TL39.80/share previously. We value
Pegasus using a 2015E target EV/EBITDAR multiple. On our EV/EBITDAR multiple valuation, we
apply a 2015E EV/EBITDAR multiple of 7.8x, in line with the historical average. Finally, to reach our target Mcap, we adjusted the net debt for 7x aircraft related rental expenses PDP receivables.
EV/EBITDAR multiple (x) 7.30 7.55 7.80 8.05 8.30
GS 2015E EBITDAR (TLmn) 660 660 660 660 660
Target EV (TLmn) 4,816 4,981 5,147 5,312 5,477
Adj. Net debt (TLmn) 1,917 1,917 1,917 1,917 1,917
Minorities (TLmn) -7 -7 -7 -7 -7
Target Mcap (TLmn) 2,907 3,072 3,237 3,402 3,567
Outstanding number of shares (mn) 102 102 102 102 102
Discount/Premium to Developed FSC 28% 16% 53% 41% -25% 1%
Discount/Premium to Emerging FSC -59% -60% -22% -27% -36% -25%
PGSUS multiples 939 0.8 0.7 7.5 5.9 13.5 9.2
Discount/Premium to Developed LCC -59% -61% -7% -17% -7% -26%
Discount/Premium to Emerging LCC -60% -62% -2% -16% 27% -6%
Source: Bloomberg, Garanti Securities
EV/SALES EV/EBITDA P/E
5
RESEARCH
The impact of lower oil prices and EUR/USD rate for Turkish air carriers in brief
Fuel expenses represent the largest cost item for airlines. Fuel expenses account for around 40% of the total costs for both THY and Pegasus.
Hedging. The airlines have an active hedging strategy for their fuel costs through swaps and options. The fuel surcharge is also a part of their policy. THY has currently hedged 45% of its fuel
expenses for 2015 compared to 46% for Pegasus. THY’s blended oil price is USD79/bbl under the
assumption of an average Brent price of USD71/bbl vs. our blended price of USD74/bbl as we assume USD61 per barrel for Brent on average for 2015. According to our calculations, the blended
price for Pegasus is USD77/bbl as the Company hedges itself at USD96/bbl. The airlines have an
active hedging strategy for their fuel costs through swaps and options.
Impact on financials. Our base case scenario assumes an average Brent price of $61/bbl in 2015.
All else being equal, each USD5/bbl change in our assumption for oil prices results in a 10% change in the 2015E EBITDA for THYAO, or a 12% change in that of PGSUS. That translates into a 1.1 pps
EBITDA margin difference for THYAO vs. the 1.2 pps difference for PGSUS. Meanwhile, each 1% change in the EUR/USD exchange rate would have a 5% impact on the projected 2015E EBITDA
for THY and a 3% impact on the same multiple for Pegasus. Our sensitivity analysis regarding the
the change in the 2015E average Brent price and EUR/USD rate is tabulated below.
Pegasus' fuel cost
Source: Garanti Securities
44.4% 43.9% 44.6% 44.7%
41.1%
36.6% 36.2%38.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2011 2012 2013 2014
as % of sales as% of cogs
THY's fuel cost
Source: Garanti Securities
40.8%
44.0% 42.9% 42.4%
33.9% 34.9% 35.0% 34.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2011 2012 2013 2014
as % of sales as % of cogs
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RESEARCH
THY
%ch 2015 EBITDA 46 51 56 61 66 71
1.05 -1% -11% -21% -31% -40% -50%
1.06 4% -6% -16% -26% -35% -45%
1.07 9% -1% -11% -21% -30% -40%
1.08 14% 4% -6% -15% -25% -35%
1.09 19% 9% -1% -10% -20% -30%
1.10 24% 14% 5% -5% -15% -25%
1.11 29% 19% 10% 0% -10% -19%
1.13 34% 25% 15% 5% -5% -14%
1.14 40% 30% 20% 10% 1% -9%
1.15 45% 35% 26% 16% 6% -4%
1.16 50% 41% 31% 21% 11% 2%
THY
2015 EBITDA margin 46 51 56 61 66 71
1.05 11.4% 10.2% 9.1% 8.0% 6.9% 5.8%
1.06 11.9% 10.8% 9.7% 8.6% 7.5% 6.3%
1.07 12.5% 11.4% 10.3% 9.2% 8.0% 6.9%
1.08 13.1% 12.0% 10.9% 9.7% 8.6% 7.5%
1.09 13.7% 12.6% 11.4% 10.3% 9.2% 8.1%
1.10 14.3% 13.2% 12.0% 10.9% 9.8% 8.7%
1.11 14.9% 13.8% 12.6% 11.5% 10.4% 9.3%
1.13 15.5% 14.4% 13.2% 12.1% 11.0% 9.9%
1.14 16.1% 15.0% 13.8% 12.7% 11.6% 10.5%
1.15 16.7% 15.6% 14.5% 13.3% 12.2% 11.1%
1.16 17.3% 16.2% 15.1% 14.0% 12.8% 11.7%
Brent Price Assumptions (USD)
EU
R/U
SD
Assu
mp
tio
ns
EU
R/U
SD
Assu
mp
tio
ns
Brent Price Assumptions (USD)
Pegasus
%ch 2015 EBITDA 46 51 56 61 66 71
1.05 19% 6% -6% -18% -30% -42%
1.06 21% 9% -3% -15% -27% -39%
1.07 24% 12% 0% -12% -24% -36%
1.08 27% 15% 3% -9% -21% -33%
1.09 30% 18% 6% -6% -18% -30%
1.10 33% 21% 9% -3% -15% -27%
1.11 37% 24% 12% 0% -12% -24%
1.13 40% 27% 15% 3% -9% -21%
1.14 43% 31% 18% 6% -6% -18%
1.15 46% 34% 21% 9% -3% -15%
1.16 49% 37% 25% 12% 0% -12%
Pegasus
2015 EBITDA margin 46 51 56 61 66 71
1.05 12.1% 10.8% 9.6% 8.4% 7.1% 5.9%
1.06 12.4% 11.1% 9.9% 8.7% 7.4% 6.2%
1.07 12.7% 11.4% 10.2% 9.0% 7.7% 6.5%
1.08 13.0% 11.7% 10.5% 9.3% 8.0% 6.8%
1.09 13.3% 12.1% 10.8% 9.6% 8.3% 7.1%
1.10 13.6% 12.4% 11.1% 9.9% 8.6% 7.4%
1.11 13.9% 12.7% 11.4% 10.2% 8.9% 7.7%
1.13 14.2% 13.0% 11.7% 10.5% 9.3% 8.0%
1.14 14.5% 13.3% 12.1% 10.8% 9.6% 8.3%
1.15 14.9% 13.6% 12.4% 11.1% 9.9% 8.7%
1.16 15.2% 13.9% 12.7% 11.5% 10.2% 9.0%
Brent Price Assumptions (USD)
EU
R/U
SD
Assu
mp
tio
ns
Brent Price Assumptions (USD)
EU
R/U
SD
Assu
mp
tio
ns
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June 18, 2015
Turkish Airlines Outperform (Maintained)
Current Price TL 8.85TL
12M Target Price TL 11.25TL
Potential Return TL 27%
Current Mcap (TLmn) 12,213
Current EV (TLmn) 31,773
4,466
Bloomberg/Reuters:
1 mth 3 mth 12mth
-1% 1% 28%
81.7
YTD TL Return: -8%
1,380
Free Float (%): 51
73%
Financials and Ratios 2013 2014 2015E 2016E
Net Sales (TLmn) 18,777 24,158 29,321 33,485
EBITDA (TLmn) 2,330 2,910 3,378 3,912 Research Analyst: Baris Ince
Net Income Margin 6.1% 4.3% 6.1% 4.9% 0.0 pps 0.6 pps
Target Price
Source: Bloomberg, Garanti Securities
Bloomberg Garanti Securities Difference
11.01 11.25 2%
Please see the last page of this report for important disclosures.
11
RESEARCH
June 18, 2015
Airlines
Turkish Airlines
Turkish Airlines 1Q15 Results Review Turkish Airlines reported a net prof it of TL373mn in 1Q15, better than the consensus estimate of a TL319mn net profit and in line with our estimate
of a TL380mn net prof it. The airline generated TL5,456mn of revenues in the quarter – in between the consensus and our expectation. 1Q15
EBITDA was broadly in line with our estimate while exceeded the
consensus by 23%. According to our calculations, the 1Q15 EBITDAR came in at TL594mn with a flattish margin YoY at 10.9%.
The Company recorded TL642mn of net financial income in the quarter compared to TL130mn expense a year ago, mainly due to FX gains.
Recall that, the airline’s functional currency is USD and the Company had
a TL9.3bn short FX position - mostly based in EUR and JPY - as of 1Q15.
In 1Q15, based on the Company’s calculations, unit revenues
decreased by 11% YoY (2% excluding currency impact) while CASK declined by 13% YoY thanks to lower oil prices. CASK (ex-fuel)
declined by 7% in 1Q15. According to the Company, on annual basis, 1Q operating profit was hit by US$89mn f rom currency and US$69mn
f rom unit revenue (ex-currency) weakness vs. positive impact of
favourable fuel prices at US$242mn.
The Company shared some information regarding its regional yield
development in 1Q15 vs. 1Q14. Accordingly, all markets generated negative contribution to revenue. Africa was the worst performer with a
decline of 17% in RASK, followed by 14% in Europe&CIS, 12% in
America and Asia&Far East. The declines were 6% in Middle East and 2% in Turkey, respectively.
Still attractive, yet ST risks dominate the agenda
We maintained Outperform rating for Pegasus Airlines with a 20%
lower 12 month forward target price of TL31.65/share, indicating
26% upside potential.
We find the airline’s growth prospects attractive, however, we doubt
that Pegasus will be able to achieve cost efficiencies over its
competitors in 2015 due to exchange rate pressure, changes in the fleet mix and initial ramp handling investments. Potential
competition from THY could also pressure the airline. Despite
aforementioned headwinds on cost side, we believe that the current
levels offer a good entry point for the LT investors. The stock trades
on par vs. peers, on its 2015E EV/EBITDA vs. 17% discount in 2016.
We reduced our estimates mainly on profitability side rather than
top line. The Company guides for stable yields compared to a c3 -4%
increase in unit costs. We trimmed our EBITDA and net income forecasts by a 18% and 35% for 2015.
Margins would be under pressure this year
Pegasus Airlines faced stiff competition from Turkish Airlines (THY) in 2014 with the flag carrier moving to form a second hub at SAW given the capacity
constraints at its IAA hub. THY plans to increase its market share at SAW by
5pps to 25% in 2015 with 28 aircraft operating from the terminal - which will
mean more pressure on revenue yields this year as well. In addition to
exchange rate movements and the change in the fleet mix, initial ramp
handling investments may burden Pegasus Airlines with additional cost
pressures in the short term. With our conservative assumptions, we cut our EBITDAR margin forecasts by 0.8 pps to 18.5% (vs. 19-21% guidance). On
the other hand, Pegasus enjoys strong ancillary revenues at EUR10.2/pax
(EUR9.3 in 2014), which are expected to remain between EUR10 -12 in the
next 2 years (we forecast EUR11.0/pax in 2016). We assume a 1% lower
RASK in 2015, but, 3% increase in CASK. The airline guides for a stable
yields and a 3-4% increase in CASK with a stable load factor. The Company
targets 15-17% growth in pax figures in 2015 (vs. our 12%). Pegasus recorded a net loss of TL147mn from derivative contracts on fuel and the
currency in 2014. As of 1Q15, Pegasus had a TL34mn liability under its
equity in connection with its derivatives contracts to be released to the P&L
in 2015 if realized, we conservatively reflected the amount of TL34mn to
2015E net income forecast (TL28mn in 1Q15). The Company hedges %45 of
its 2015 budgeted fuel consumption. Hedged price is around USD96. All else
being equal, each USD5/bbl and 1% change in our assumption for oil prices and EUR/USD result in a 12% and 3% change in the 2015E EBITDA for
Pegasus. (see page 6).The Company has recently converted international
ticket sales originating in Turkey to USD from EUR. Such sales account for
c13% of its revenue. This will reduce the negative impacts of currency
mismatch on operations. 39% and 15% of revenues were in EUR and USD,
respectively, in 2014 while those of costs were 23% and 56%.
RESEARCH
Turkey - Equity - Airlines
Company Update
Please see the last page of this report for important disclosures.
17
RESEARCH
SUMMARY FINANCIALS (TL mn)
The Company in Brief
Pegasus Airlines is a low cost carrier with a fleet of
61 aircrafts as April 2015. Founded in 1990 to
provide charter services, Pegasus’s business model
was changed following its acquisition by Esas
Holding in 2005. The airline uses Istanbul Sabiha
Gokcen Airport as main hub, and flies to 91 routes in
37 countries. Pegasus carried c.20mn passengers in
2014. In 2012, Pegasus placed an order for 100
aircraft (75 firm + 25 optional orders) to be delivered
OUTPERFORM (OP) The stock's return is expected to exceed the return of the BIST100 over the next 12 months.
MARKET PERFORM (MP) The stock's return is expected to be in line with the BIST100 by over the next 12 months.
UNDERPERFORM (UP) The stock's return is expected to fall below the return of the BIST100 by over the next 12 months.
Recommendation History - Pegasus
Source: Garanti Securities
Date Rec. TP
1 02.01.13 OP 7.20
2 17.01.13 OP 8.20
3 07.03.13 MP 8.20
4 18.04.13 MP 8.26
5 20.05.13 MP 9.15
6 30.05.13 MP 9.01
7 26.06.13 MP 7.83
8 18.07.13 MP 8.25
9 10.10.13 MP 9.00
10 05.12.13 OP 9.40
11 11.02.14 OP 9.20
12 06.06.14 OP 8.50
13 11.12.14 OP 11.90
5.00
6.40
7.80
9.20
10.60
12.00
01.1
3
03.1
3
05.1
3
07.1
3
09.1
3
11.1
3
01.1
4
03.1
4
05.1
4
07.1
4
09.1
4
11.1
4
01.1
5
03.1
5
05.1
5
Target Price vs. Raw Stock Price (TL)
THYAO Target Price
Date Rec. TP
1 11.02.14 OP 40.00
2 06.06.14 MP 30.50
3 11.12.14 OP 39.80
20.00
25.00
30.00
35.00
40.00
45.00
02.1
4
04.1
4
06.1
4
08.1
4
10.1
4
12.1
4
02.1
5
04.1
5
06.1
5
Target Price vs. Raw Stock Price (TL)
PGSUS Target Price
Please see the last page of this report for important disclosures.
26
RESEARCH
Disclaimer
This document and the information, opinions, estimates and recommendations expressed herein,
have been prepared by Garanti Securities Research Department, to provide its customers with general information regarding the date of issue of the report and are subject to changes without prior
notice. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
This document and its contents do not constitute an offer, invitation or solicitation to purchase or subscribe to any securities or other instruments, or to undertake or divest investments. Neither shall
this document nor its contents form the basis of any contract, commitment or decision of any kind.
Investors who have access to this document should be aware that the securities, instruments or
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financial positions or risk prof iles, as these have not been taken into account to prepare this report. Therefore, investors should make their own investment decisions considering the said circumstances
and obtaining such specialized advice as may be necessary. The information in this report has been
obtained by Garanti Securities Research Department f rom sources believed to be reliable. However, Garanti Securities cannot guarantee the accuracy, adequacy, or completeness of such information,
and cannot be responsible for the results of investment decisions made on account of this report.
The market prices of securities or instruments or the results of investments could fluctuate against
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Garanti Securities
Etiler Mah. Tepecik Yolu
Demirkent Sokak No:1 34337 Besiktas, Istanbul / Turkey