Indeks Computer Outperform (Maintained)

February 5, 2016
Indeks Computer
Outperform (Maintained)
A multi-pronged growth story
Share Price
12M Target Price
Potential Return
TL6.81
TL10.20
50%
Investment Thesis
HQ plot to almost quadruple the bottom line in 2017.
Indeks, Turkey’s largest IT distributor, is poised to reap the benefits
of its revenue sharing project at the site of its headquarters in
Ayazaga Istanbul. The agreement was signed back in 2013 and
Indeks will collect 40.5% of the revenues from the project by May
2017 at the latest. Half of the proceeds will be distributed as
dividends after the tax deductions. The project’s total saleable area
is 62,362sqm and almost half of it (116 units out of 204 units) has
already been sold. We calculate around TL205mn (USD81mn) in
revenues from the project. We calculate a TL196mn consolidated
net profit in 2017, almost quadrupling YoY.
The real estate project will also boost the dividend yield.
Indeks’ average pay-out ratio has been 81% for three years.
Management is committed to distributing half of the profits to be
collected from the real estate project. We thus calculate a
USD30mn additional dividend in 2017, corresponding to a DPS of
TL2.67 and a dividend yield of 39%. Management may also
increase the dividend payout ratio using its retained earnings
starting from FY15 to extend the attractive dividend yields for the
coming years, rather than paying out a one-time high dividend in
2017.
Datagate’s operational performance brightened by Avea.
Datagate (DGATE, Not Rated), an Indeks Group company, signed
a distributorship agreement with Avea in July 2014 to provide
mobile products and Avea GSM lines in Avea’s centers in the Izmir,
Antalya and Konya regions. With the distributorship agreement,
DGATE’s revenues tripled and its EBITDA almost quadrupled in
9M15. We expect Indeks’ consolidated revenues and EBITDA to
follow a CAGR of 12.2% and 10%, respectively between 20152018. Meanwhile, Datagate is Indeks’ major source of increasing
working capital and financial debt, which emanates from Datagate’s
distributorship agreement with Avea, related to the financing of
contracted mobile devices. However, Datagate started to use
factoring tools in October 2015 and its working capital requirement
and debt amount started to decrease and will further decrease in
the coming quarters.
Catalysts: i) Higher than expected revenues from the real estate
project, ii) the extension of Datagate’s distributorship agreement
with Avea in the new regions might boost Indeks’ revenues, iii) a
higher than expected dividend pay-out ratio and iv) strong 4Q15
results and v) liquidity provider agreement.
Valuation: We reiterate our Outperform recommendation for Indeks
while increasing our 12-month target price from TL8.25 to TL10.20,
indicating a 52% upside potential. We have lowered our 30% small
cap discount to our target value to 20% on the back of the rising
trading volume with the liquidity provider agreement.
Risks: The downturn in economic growth and a sharp depreciation
of the TL could cause consumers to postpone their IT spending.
Mcap
EV
TL381m n
USD131m n
TL726m n
Stock Market Data (February 04, 2016)
Bloomberg/Reuters:
INDES.TI / INDES.IS
Rel. Performance:
1 mth
3 mth
4%
30%
12M Range (TL):
12mth
48%
4.95 / 6.81
Average Daily Vol (TLmn) 3 mth:
1.2
YTD TL Return:
8%
Beta (2year, w eekly)
1.00
Weight in BIST-100
0.001
Shares Outstanding (mn):
56.0
Foreign Ow n. in Free Float :
Current
12M ago
17%
30%
The Com pany in Brief
Established in 1989, Indeks, w ith its w ide range of product lines, is
the largest distributor company operating in the computer field in
Turkey. The Company distributing all kinds of IT products to IT firms
in Turkey. Indeks, being the second distributer of Apple products in
Turkey, distributes more than 200 global brands, w ith more than
7,500 business partners. It is the leader in the Turkish IT sector
w ith a market share of 19.4%.
Shareholders Structure
Nevres Erol Bilecik
36.3%
Alfanor
24.2%
Free Float
39.6%
Financials and Ratios
2014
2015E
2016E
2017E
Net Sales (TLmn)
2,206
3,352
3,950
4,448
37%
52%
18%
13%
56
93
103
116
YoY
20%
65%
11%
13%
25
46
51
196
YoY
385%
81%
13%
281%
EBITDA margin
2.6%
2.8%
2.6%
2.6%
Net margin
1.1%
1.4%
1.3%
4.4%
P/E (x)
15.1
8.3
7.4
1.9
EV/EBITDA (x)
12.9
7.8
7.1
6.3
EV/Sales (x)
0.3
0.2
0.2
0.2
EPS (TL)
0.45
0.82
0.92
3.50
YoY
EBITDA (TLmn)
Net Income (TLmn)
DPS (TL)
0.38
0.61
0.69
2.67
Div. Yield
5.6%
9.0%
10.1%
39.2%
14.6%
24.9%
26.2%
80.8%
ROE
Analyst: Halil Kahve
Sales Contact:
+90 (212) 384 1137
+90 (212) 384 1155-58
[email protected]
[email protected]
Indeks Computer
February 5, 2016
RESEARCH
SUMMARY FINANCIALS (TLmn)
Income Statement
Net Sales
Cost of Sales
Gross Profit (Loss)
Operating Expenses
Operating Profit
Consolidated EBITDA
Net Other Income/ Expense
Profit (Loss) from Subsidiaries
Net financial Income/ Expense
Profit (Loss) before Tax
Taxation on Continuing Operations
Minority Interests
Net Income
Ratios
EBIT Margin
EBITDA Margin
Net Income Margin
2014
2,206
-2,103
103
-49
54
56
5
1
-22
38
-8
5
25
2015E
3,352
-3,194
158
-67
90
93
-7
-1
-11
71
-14
11
46
2016E
3,950
-3,771
179
-79
100
103
-7
-1
-11
80
-16
13
51
2017E
4,448
-4,245
202
-90
113
116
206
-1
-10
306
-61
49
196
2.4%
2.6%
1%
2.7%
2.8%
1.4%
2.5%
2.6%
1.3%
2.5%
2.6%
4.4%
Sales Growth
EBITDA Growth
Net Income Growth
37%
20%
385%
52%
65%
81%
18%
11%
13%
13%
13%
281%
Balance Sheet
Current Assets
Cash and Cash Equivalents
Short-Term Trade Receivables
Inventories
Other Current Assets
Long Term Assets
Total Assets
Short Term Liabilities
Short-Term Financial Loans
Short-Term Trade Payables
Other Short-Term Liabilities
Long Term Liabilities
Long-Term Financial Loans
Other Long-Term Liabilities
Shareholders Equity
T. Liabilities & S.holders Equity
2014
962
112
636
170
43
98
1,060
843
92
684
68
45
42
3
172
1,060
2015E
1,272
153
849
225
46
233
1,504
1,249
189
914
147
72
69
3
183
1,504
2016E
1,447
153
988
260
46
235
1,681
1,438
194
1,077
167
47
44
3
196
1,681
2017E
1,622
174
1,109
293
46
237
1,859
1,584
187
1,213
184
32
29
3
243
1,859
56
49
-28
19
-9
-21
55
72
93
36
179
-4
-15
-34
83
-124
103
11
-3
-4
-15
-39
-19
19
116
19
15
-5
-15
-150
-42
22
0.4
0.1
-0.9%
2.2%
11.6%
289.5%
0.0%
1.1
0.6
0.1%
1.1%
17.9%
-65.1%
10.5%
0.8
0.4
0.1%
0.3%
21.1%
-64.5%
19.6%
0.4
0.2
0.1%
0.4%
71.3%
-42.8%
8.5%
Cash Flow Summary
EBITDA
WC Change
Operating Cash flow
Capex
Investing cash flow
Dividends paid
Change in net debt
CF from financing activities
Key metrics
Net Debt/EBITDA (x)
Net Debt/Equity (x)
Capex/Sales (%)
WC Change/Sales (%)
ROCE (%)
ROIC (%)
FCF yield (%)
2
Please see the last page of this report for important disclosures.
RESEARCH
Indeks Computer
February 5, 2016
INVESTMENT POSITIVES
Real estate project is in the spotlight
Indeks’ 100% owned subsidiary, Teklos, signed a revenue sharing
agreement with the contractor, Seba Insaat, in March 2013 for its
40,000sqm plot at the site of its headquarters in Ayazaga Istanbul.
According to the revenue sharing agreement, Teklos will collect 40.5% of
the revenues, with Seba Insaat collecting 53.6% and the other landlords
collecting the remaining 6%. The contractor, Seba Insaat, received a
construction permit in January 2015 and the project is scheduled to be
completed in May 2017.
The project’s total saleable area is 62,362sqm and 46% of it has already
been sold (116 units out of 204 units). The total sales amount was
USD90mn and USD42mn has already been collected. Teklos is expected
to collect at least USD80mn in revenues from the project and will receive
the cash from the project by May 2017 at the latest without taking into
account the project’s sales performance.
In line with the company guidance, we calculate around TL205mn
(USD81mn) in revenues from the project. The contractor guarantees the
payment of an estimated amount to Indeks, but if the total revenues from
the project exceed the estimates, Indeks will collect further revenues from
the project. With the revenue sharing model all the risk of the project is
transferred to the contractor.
Indeks expects to collect a profit of around USD60mn after the tax
deduction. Half of these proceeds will be directed to its operations and
another USD30mn will be distributed as a dividend. Therefore, Indeks is
set to be one of the most generous dividend players on the BIST.
Note that the cash collected from pre-sales is recorded on the balance
sheet as a liability under “advances received.” When construction has
been completed and all units have been delivered, revenues will be
reflected on the income statement and the profits will be recognized. As
the delivery of the project will be made in 2017, we expect a substantial
increase in the Company’s bottom line emanating from the profits. We
expect a TL196mn net profit in 2017, implying a 281% increase over the
2016 net profit estimate of TL51mn.
3
Please see the last page of this report for important disclosures.
Indeks Computer
February 5, 2016
RESEARCH
Higher dividend payments from the real estate project is the major
expectation
Indeks distributed TL21.2mn in gross cash dividends in May 2015 from its
2014 net earnings. The Company has been a regular dividend distributor
since 2007. The average pay-out ratio in the last four years was 71% and
the last three years average was 81%.
The major expectation is the bulk dividend payment from the proceeds
from the real estate project. In line with management’s commitment to
distributing half of the profits, we calculated a USD30mn additional
dividend to be distributed. As the revenues from the project will be
reflected on the income statement with the completion of the deliveries,
2017 will be the year of bulk dividend payments.
Dividend Scenario
Net Profit (Excl. Real Estate Project)
Net Profit (Incl. Real Estate Project)
2015E
2016E
2017E
2018E
46
51
62
68
46
51
196
68
75%
75%
75%
75%
34
39
47
51
34
39
150
51
Payout Ratio including real estate
75%
75%
76%
75%
DPS
0.61
0.69
2.67
0.91
Dividend Yield
9.0%
10.1%
39.2%
13.4%
Payout Ratio
Gross dividend from the core business
Additional 30mn USD dividend
Total Dividend Payment
103
Source: The Company, Garanti Securities
However, management may choose to start the payment of an additional
dividend from its retained earnings starting from 2015 in order to extend
the attractive dividend yields for the coming years rather than paying out a
one-time very high dividend in 2017.
Datagate’s operational performance brightened by Avea
Datagate (DGATE, NR), an Indeks Group company, signed a
distributorship agreement with Avea, the mobile arm of Turk Telekom, in
July 2014 to distribute mobile products and services. Datagate entered
the mobile products and services market with this distributorship
agreement and began to distribute mobile products and Avea GSM lines
in Avea centers as well as products under the Avea brand in the retail
channels in the Izmir, Antalya and Konya regions.
Datagate-Avea operating regions
4
Please see the last page of this report for important disclosures.
Indeks Computer
February 5, 2016
RESEARCH
Source: The Company
The distributorship agreement has been signed for a period of 2+1+1+1
years and covers the Izmir, Antalya and Konya regions, where 175 Avea
centers are located. The duration and the region of the agreement could
be further extended depending on datagate’s performance. With the
distributorship agreement, Datagate’s revenues tripled and the EBITDA
almost quadrupled in 9M15. Datagate aims to generate USD1.0bn in
revenues by the end of 2017. Management also expects to extend the
distributorship agreement in the new regions. The operational
performance of DGATE directly impacts Indeks’ financials as it fully
consolidates them.
250
256
234
258
300
266
Datagate’s revenue and EBITDA evolution with the Avea agreement
8.0
7.0
200
6.0
5.0
119
150
4.0
3.0
2.0
36
41
100
50
9.0
1.0
0
0.0
1Q14
2Q14
3Q14
4Q14
Sales (LHS)
1Q15
2Q15
3Q15
EBITDA
Source: The Company, Garanti Securities
5
Please see the last page of this report for important disclosures.
Indeks Computer
February 5, 2016
RESEARCH
DGATE’s working capital and financial debt will decline with the factoring
company.
Datagate is Indeks’ major source of increasing working capital and
financial debt as it fully consolidates them. The increase emanates from
Datagate’s distributorship agreement with Avea within the scope of the
financing of the contracted mobile devices.
Avea sells smartphones to end users via 12-24-36 month instalments
(average is 24 months). To close the financial deficit between the
customer collection period and vendor payment date, Datagate takes out
bank loans. Avea negotiates the loan terms and interest rates with the
banks and is the 100% guarantor for these loans. Avea pays these loans
and interest expenses to Datagate. Later, Datagate pays loan and interest
expenses to the related banks. This is the reason behind the sharp
increase in working capital requirements and financial debt.
Datagate started to use factoring tools in October 2015 and sell
receivables to a factoring company with the same interest expense rates
as the loans, which will bring additional financial costs. With the factoring
tool, the debt amount in the balance sheet has started to decrease and
will further decrease in the coming quarters. Therefore, when adjusting
Datagate’s TL291mn net debt as of 9M15 in Indeks’ financials, the EV/
EBITDA multiples will be more attractive.
Indeks’ adjusted multiples
2014
2015E
2016E
2017E
EV/EBITDA (x)
12.9
7.8
7.1
6.3
Adjusted EV/EBITDA
7.7
4.7
4.2
3.8
Indeks’ distributorship agreement with Apple increases competitiveness
and revenues
Indeks signed a distributorship agreement with Apple on October 10, 2012
and the company has become Apple’s second distributor of products,
such as the IPad, Mac and IPod (but not mobile phones) in Turkey. In
November 2013, Indeks signed another agreement with Apple to
distribute the Iphone and its accessories. Note that Bilkom Bilisim, which
is the 69.94% subsidiary of Koc Holding (KCHOL), was the sole distributor
of Apple products before Indeks signed a distributorship agreement with
Apple. The prestigious distributorship agreement with Apple strengthens
the company’s position in the sector and contributes around USD300350mn to the top line. Indeks with its sound balance sheet is likely to
remain Turkey’s dominant IT distribution company going forward and to
benefit from the expected growth in the IT sector.
6
Please see the last page of this report for important disclosures.
RESEARCH
Indeks Computer
February 5, 2016
Indeks is the market leader in the IT distribution segment
Indeks is principally involved in distributing all kinds of IT products to IT
firms in Turkey. The Company distributes more than 200 global brands
and operates with more than 7,500 business partners. Indeks commands
a 23% market share in Turkey’s IT hardware sector and a 19.4% share in
the overall IT sector in Turkey. Other listed companies involved in the
same business line are Armada Computer (ARMDA, NR) and Arena
computer (ARENA, NR).
Indeks’s market share in the overall IT sector (left) and hardware sector
Source: The Company, Garanti Securities
IT sector with a high growth potential
The PC ownership penetration in Turkey was around 50% in 2014 and is
forecasted to increase to 55% in 2016. Internet penetration is also
expected to increase from 60% to 68% in 2016. The PC penetration
almost quadrupled since 2005, while internet penetration almost tripled in
the same period. Despite the rapid increase in the penetration levels over
last ten years, Turkey’s pc ownership and internet usage are still lower
than those of developed countries. Taking into account the young average
age of Turkey’s population, increasing GDP per capita with the increasing
presence of local and retail stores selling computers, the IT sector offers a
substantial growth potential. As the largest distributor, commanding a 23%
market share in the hardware segment, we believe Indeks will reap the
fruits.
7
Please see the last page of this report for important disclosures.
Indeks Computer
February 5, 2016
RESEARCH
PC and Internet penetration in Turkey
80%
70%
58%
60%
52%
50%
44%
40%
30%
20%
46%
60%
50%
64%
52%
68%
55%
40%
34%
25%
15%
10%
0%
2005
2011
2012
PC Penetration
2013
2014
2015E
2016E
Internet Penetration
Source: The Company, Garanti Securities
Differentiating itself with its logistic and service businesses
Due to the nature of the distribution business, the profit margins of the
sector’s players are lower when compared to other business lines (while
gross margin hovers at the 6%-9% levels and the EBITDA margin is at 3%
- 5%). Therefore, creating value with value added businesses is crucial for
the distributor companies to increase and maintain their profitability. We
like the fact that Indeks differentiates itself with its logistics and services
business. Teklos, the whole subsidiary of Indeks, is the logistics company
and provides logistics services to group companies as well as third
parties, such as Turk Telekom (TTKOM) and Vodafone. Teklos’
contribution to the overall top line was only 1%, but its contribution to the
operating profit was 8% in 9M15.
The liquidity provider agreement
Indeks’ average three-month daily volume stands at approximately
TL950,000 corresponding to just 0.025% of the three-month average daily
volume of the BIST-100. The low trading volume presents a liquidity risk.
Indeks signed a liquidity provider agreement with a brokerage house for
162,402 Indeks shares (corresponding to 0.29% of the total capital) at the
end of November 2015. The liquidity provider agreement started
supporting the daily trading volume. Subsequently, the three-month
average daily volume of Indeks’ shares more than doubled since
November 2015.
8
Please see the last page of this report for important disclosures.
Indeks Computer
February 5, 2016
RESEARCH
Indeks’ average daily trading volumes (mn TL)
14.0
Higher trading volumes with
liquidity provider agreement
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Source: The Company, Garanti Securities
4Q15 results are expected to be promising
Indeks is expected to disclose its 4Q15 results in the second week of
March 2016. We expect strong results on the back of seasonality factors.
Indeks’ revenues are subject to seasonality; the Company generates
around 30-35% of its annual revenues in final quarter of the year.
We expect revenues of TL1,065mn (39% higher QoQ), an EBITDA of
TL28mn (up by 38% QoQ) and a net profit of TL18mn (up by 75% QoQ) in
4Q15.
Indeks
(mn TL)
Change
4Q14
1Q15
2Q15
3Q15
4Q15E
12M14
Net Sales
853
748
774
766
1,065
2,206
12M15E 4Q15/4Q14 4Q15/3Q15 12M15E/12M14
3,352
25%
39%
52%
EBITDA
23
24
21
20
28
56
93
18%
38%
65%
Net Income
11
11
7
10
18
25
46
59%
75%
81%
EBITDA Margin
2.7%
3.3%
2.7%
2.6%
2.6%
2.6%
2.8%
-0.1 pp
0 pp
0.2 pp
Net Profit Margin
1.3%
1.4%
1.0%
1.3%
1.7%
1.1%
1.4%
0.4 pp
0.3 pp
0.2 pp
Source: The Company, Garanti Securities
RISKS
The increasing geopolitical uncertainties, a possible downturn in GDP
growth and a sharp depreciation of the TL against the USD could cause IT
consumers to postpone their IT spending, which would put pressure on
Indeks’ operational performance.
9
Please see the last page of this report for important disclosures.
Indeks Computer
February 5, 2016
RESEARCH
VALUATION
We valued Indeks using a combination of DCF and peer group
comparison methods, attaching a 50% weighting to each. We also
included the real estate project in our valuation.
In our previous valuations, we had applied a 30% small cap discount to
our target value due to the lower trading volume as it presents a liquidity
risk. As the trading volume is rising with the support of the liquidity
provider agreement signed in November 2015, we decided to lower our
30% small cap discount to our target value to 20%.
Thus, we determined a target Mcap of TL571mn for Indeks,
corresponding to a 12-month target share price of TL10.20, implying a
50% upside potential.
Valuation Summary
DCF Analysis
Peer Comparison
Company Value
NPV of the real estate project
Target Value
- Small Cap Discount
Target Value after Small Cap Discount
Target Share Price (TL)
Current Share Price (TL)
Upside potential
Value (TLmn)
Weight
604
424
50%
50%
20%
Contribution (TL
mn)
302
212
514
200
714
143
571
10.20
6.81
50%
DCF Valuation
We calculated a target value of TL604mn for Indeks based on DCF
analysis. Our valuation assumed a 3% terminal growth rate, a Beta of 1.0,
an equity risk premium of 5.5% and a risk free rate of 10.0%. Under our
assumptions, the implied WACC for Indeks stands at 13.7%.
2015E
3,352
90
-14
76
2
79
-36
-4
38
2016E
3,950
100
-16
84
3
87
-11
-4
71
2017E
4,448
113
-61
51
3
55
-19
-5
31
2018E
4,915
124
-21
102
4
106
-20
-5
81
2019E
5,431
136
-24
112
4
117
-22
-5
89
2020E
6,001
150
-27
123
4
128
-24
-6
98
2021E
6,631
165
-30
135
5
140
-27
-6
107
2022E
7,327
182
-33
149
5
154
-30
-6
118
2023E
8,097
201
-37
164
6
170
-33
-6
131
EBITDA
EBITDA Margin
93
2.8%
103
2.6%
116
2.6%
128
2.6%
140
2.6%
154
2.6%
170
2.6%
187
2.6%
207
2.6%
Assumptions and Results (TL
mn)
Weight of equity
Cost of Equity
Beta
Risk free rate
Market Risk Premium
Cost of Debt after tax
Tax rate
WACC
Terminal Value Growth
75%
16%
1.00
10.0%
5.5%
8.4%
20.0%
13.7%
3.0%
Net Sales
Operating Profit
Taxes
NOPLAT
Depreciation
Gross Cash Flow
Change in WCR
Capex
Free Cash Flow
PV of FCF
PV of Terminal Value
Implied Firm Value
Net Cash
12M Target Mcap
407
461
868
-345
604
10
Please see the last page of this report for important disclosures.
Indeks Computer
February 5, 2016
RESEARCH
Peer Valuation
We compared Indeks with other global players in the IT sector based on
the EV/EBITDA multiple of a group of IT companies based on our 2016
and 2017 forecasts. Accordingly, we arrived at a valuation of USD130mn
for Indeks based on our peer comparison analysis.
MCap
Company Name
EV/EBITDA
P/E
US$mn
2016E
2017E
2016E
2017E
Esprinet Spa
426
7.6
7.1
11.0
10.3
Synnex Thailand Pcl
102
12.5
10.6
12.8
11.3
Ab Sa
129
5.2
5.2
7.4
7.0
Action Sa
100
8.7
8.0
9.1
8.1
Datatec Ltd
564
3.1
2.7
5.7
5.0
Abc Data Sa
97
9.2
8.8
10.9
10.2
Average
236
7.7
7.1
9.5
8.7
7.1
6.3
7.4
1.9
INDES
Implied Value (USD mn)
130
Source: Bloomberg, Garanti Securities
Real Estate Project
We also included the company’s HQ plot which has a total saleable area
of 62,362sqm in our valuation. Based on the revenue sharing agreement
with the contractor, Indeks will collect 40.5% of the revenues from the
project. In our valuation, we assumed there will be no change in the
project’s 62,362sqm saleable area to be completed in three years.
We assumed an average sales price of USD3,216 per sqm to reach a
TL200mn valuation for Indeks. Note that considering the increasing
attractiveness of the location, the increase in the project’s average sales
price will provide a further upside for our valuation.
TL mn
2015E
2016E
2017E
Cash Proceeds
260
287
79
Indes's Share 40.5%
105
116
32
Opex
4
4
1
Taxes
21
23
6
Cash Flow
102
89
25
Discount Factor
1.00
0.89
0.78
PV CF
102
79
19
Sum of PV CF (TL)
200
Source: The company, Garanti Securities
11
Please see the last page of this report for important disclosures.
Indeks Computer
February 5, 2016
RESEARCH
Appendix I - 3Q15 Financial Statements
Indeks Bilgisayar Summary Financials
(mn TL)
Change
3Q14
4Q14
1Q15
2Q15
3Q15
9M14
9M15
3Q15/3Q14 3Q15/2Q15 9M15/9M14
Net Sales
470
853
748
774
766
1,353
2,287
63%
-1%
Gross Profit
22
37
38
37
34
65
109
57%
-6%
67%
Operating Profit
10
23
24
20
19
31
63
92%
-3%
103%
EBITDA
11
23
24
21
20
33
65
86%
-3%
98%
Net Other Income/Expense
3
-2
-3
2
-5
6
-7
n.m.
n.m.
n.m.
Financial Inc./ Exp. (net)
-6
-4
-4
-9
2
-18
-11
n.m.
n.m.
n.m.
Tax
-1
-4
-3
-2
-3
-4
-9
n.m.
n.m.
n.m.
Net Income
4
11
11
7
10
14
28
143%
35%
99%
69%
Net Cash
-45
-21
-271
-355
-345
-45
-345
Working Capital
175
123
380
425
438
175
438
Shareholders Equity
158
172
186
175
188
158
188
Gross Margin
4.7%
4.4%
5.1%
4.8%
4.5%
4.8%
4.8%
-0.2 pp
-0.3 pp
-0.1 pp
Operating Margin
2.2%
2.7%
3.2%
2.6%
2.5%
2.3%
2.8%
0.4 pp
-0.1 pp
0.5 pp
EBITDA Margin
2.3%
2.7%
3.3%
2.7%
2.6%
2.4%
2.9%
0.3 pp
-0.1 pp
0.4 pp
Net Profit Margin
0.9%
1.3%
1.4%
1.0%
1.3%
1.0%
1.2%
0.4 pp
0.4 pp
0.2 pp
Ratios
Datagate Bilgisayar Summary Financials
(mn TL)
Change
3Q14
4Q14
1Q15
2Q15
3Q15
9M14
9M15
119
258
266
234
256
197
756
115%
9%
284%
Gross Profit
4
10
8
9
9
8
26
108%
-9%
234%
Operating Profit
3
8
6
6
6
4
18
134%
-3%
387%
EBITDA
3
8
6
6
6
4
18
133%
-3%
384%
Net Other Income/Expense
1
0
1
-1
0
1
0
n.m.
n.m.
n.m.
Profit (Loss) from Subsidiaries
0
0
0
0
0
0
0
n.m.
n.m.
n.m.
Financial Inc./ Exp. (net)
-1
0
0
0
1
-2
1
n.m.
2728%
n.m.
Net Sales
Tax
Net Income
Net Cash
3Q15/3Q14 3Q15/2Q15 9M15/9M14
0
-2
-1
-1
-1
-1
-4
n.m.
n.m.
n.m.
1.8
6.0
5.0
4.6
6
2.5
15.2
201%
22%
498%
1
-56
-155
-244
-291
1
-291
Working Capital
-47
-55
-129
-198
-246
-47
-246
Shareholders Equity
34
39
45
49
55
34
55
Gross Margin
3.5%
4.0%
2.9%
4.0%
3.3%
3.9%
3.4%
-0.1 pp
-0.7 pp
-0.5 pp
Operating Margin
2.2%
3.2%
2.1%
2.7%
2.4%
1.9%
2.4%
0.2 pp
-0.3 pp
0.5 pp
EBITDA Margin
2.2%
3.2%
2.1%
2.7%
2.4%
1.9%
2.4%
0.2 pp
-0.3 pp
0.5 pp
Net Profit Margin
1.5%
2.3%
1.9%
1.9%
2.2%
1.3%
2.0%
0.6 pp
0.2 pp
0.7 pp
Ratios
12
Please see the last page of this report for important disclosures.
RESEARCH
Indeks Computer
February 5, 2016
Disclaimer
Recommendation History
Definition of Stock Ratings
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 over the next 12 months.
UNDERPERFORM (UP)
The stock's return is expected to fall below the return of the BIST100 over the next 12 months .
13
Please see the last page of this report for important disclosures.
RESEARCH
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