Market Watch Tuesday, August 10, 2021 Agenda

Market Watch Tuesday, August 10, 2021 www.sekeryatirim.com.tr Agenda

09 M onday 10 Tuesday 11 Wednesday 12 Thursday 13 Friday  Japan markets will be closed.  Turkstat, June  Germany, July CPI  TurkStat, June indus-  Fitch will release Turkey’s labour statistics trial production sovereign credit rating review  China, July CPI & PPI  U.S., July CPI  Germany, August  CBRT, rate decision  CBRT, June balance of pay-

ZEW Index  U.K., 2Q21 GDP ments Growth  U.S., August Michigan Con- sumer sentiment  Eurozone, June industrial production

 U.S., jobless claims

 U.S., July PPI

Outlook: Major global stock markets closed mixed on Monday, attributable to con- cerns over an earlier-than-expected Fed tapering, following the announcement of stronger than expected US non-farm payrolls data. Having started the day positively, the BIST100 gave a similar performance to major inter- Volume (mn TRY) BIST 100 national stock markets and shed 0.15% to close at 1,432.61. The banking sector index continued to diverge negatively, falling 0.83%. The DXY index 1.500 has strengthened, while precious metals prices significantly declined yes- 16.000 terday. The EM currencies have thus relatively depreciated. The TRY has 16.703 1.400 moved in parallel to its peers, depreciating slightly yesterday. The perfor- 12.000 mance of the currency may remain subdued this week, ahead of the 15.085 14.261 14.864 1.300 CBRT’s policy decision. This may cause the banking sector index, which 8.000 1.435 13.589 had been diverging negatively for over a week, to continue to do so in the 1.409 1.414 1.432 1.433 near term. Global risk appetite remains healthy; we do not foresee a signif- 4.000 1.200 icant risk-off mode in the equity markets, despite occasional rising con- cerns over an early Fed tapering, in the wake of strong recovery in the US 0 1.100 markets. However, should global risk appetite weaken and profit takings 3-Aug 4-Aug 5-Aug 6-Aug 9-Aug strengthen, we may observe similar behaviour at the BIST, especially after its strong recent run. The VIX has been trading near 17, which does not Indices (TRY) Previous Last Chg. YTD suggest an increasing volatility expectation for the US markets. We thus BIST 100 1.435 1.433 -0,15% -2,99% believe any downturn in the US markets is likely to be in the nature of BIST 30 1.544 1.538 -0,39% -5,97% profit taking as long as this index remains below 22. That said, the BIST may face some profit taking after its strong recent run, in parallel to the BIST-Financial 1.359 1.358 -0,08% -13,26% relative weakness in global markets. This may, however, in turn be utilized BIST-Industrial 2.611 2.606 -0,19% 11,36% as a buying opportunity. The US futures have been flat and Asian markets BIST-Services 1.125 1.131 0,54% -5,14% have been trading mixed today. We expect the BIST to open flat, while cautioning that the risk of profit taking at the BIST may have increased. Advances Declines Most Active SUPPORT: 1,425 -1,413 RESISTANCE: 1,436 -1,451. Stocks (%) Stocks (%) Stocks Vol (TR) SELGD 10,00 FADE -10,00 GARAN 1.454.119.306 GENIL 10,00 ISGSY -9,97 SISE 1.252.687.125 Money Market: KAPLM 10,00 EDIP -9,93 KRDMD 767.296.739 The Lira was negative yesterday, weakening 0.35% against the USD to CANTE 10,00 DAGHL -9,15 THYAO 715.488.064 close at 8.6554. Additionally, the currency depreciated by 0.28% against ARTI 10,00 DOBUR -8,01 YKBNK 618.257.111 the basket composed of $0.50 and €0.50. Meanwhile, the local fixed income markets were relatively flat. The ten-year benchmark bond was traded within a tight range of 17.80%-17.84%, ending at the 17.81%, un- Money Market Previous Last Pr. Mn YTD changed from its previous close. O/N Repo (%) 19,11 19,10 17,50 18,49 Bond (Benchmark, %) 18,48 18,73 18,47 14,96 Domestic Headlines: Currency Previous Last Chg. YTD Labor market data for June will be announced on the macroeconomic data US$ 8,6542 8,6640 0,11% 16,46% agenda today. We estimate that the decline in unemployment rate will continue with the opening of the economy and seasonal effects. Our de- Euro 10,143 10,166 0,23% 11,31% tailed analysis after the data will be published within the day. Euro/Dolar 1,1720 1,17355 0,13% -4,11%

Company News: Commodity Previous Last Chg. YTD Oil (Brent spot, $) 69,1 69,6 0,74% 34,92% Aksa Energy (AKSEN.TI; OP) has announced signing a new Memo- Oil (NYMEX future, $) 66,5 67,3 1,23% 38,99% randum of Cooperation with Izmail City Council regarding the combined cycle power plant planned to be built in Izmail, a city in Ukraine (Positive). Gold (Ounce, $) 1.729,6 1.734,5 0,28% -8,64% Silver (XAG, $) 23,4 23,6 0,68% -10,64% Aselsan (ASELS.TI; OP) is to announce its 2Q21 financials today. We expect a Q2 net profit of TRY 1,150mn, while the median market expecta- Şeker Funds Previous Last* Chg. YTD tion is for a TRY 1,146mn net profit. We expect 2Q21 net sales revenues Fiba Portfoy Şekerbank Money 2,126669 2,127686 0,05% 10,85% and EBITDA to reach TRY 3,690mn and TRY 890mn, respectively. The Fiba Portfoy Şekerbank Short T. 0,024775 0,024787 0,05% 10,52% market’s respective net sales and EBITDA expectations are TRY 3,690mn and TRY 885mn. * Prices as of 10-Aug-21

Market Watch Tuesday, August 10, 2021 www.sekeryatirim.com.tr

Isbank (ISCTR.TI; MP) is expected to announce its 2Q21 earnings World Indices results today after the market close. Our net income estimate is TRY1,802 America Previous Last Chg. YTD (-3% QoQ, +14% YoY) while the Research Turkey market consensus is at Dow Jones (US) 35.209 35.102 -0,30% 14,69% TRY1,822mn. Nasdaq (US) 14.836 14.860 0,16% 15,30% S&P 500 (US) 4.437 4.432 -0,09% 18,00% Below-average TRY lending growth, a strong rebound in fees (+12% Europe Previous Last Chg. YTD QoQ), an elevated TRY3.1bn trading loss due to higher swap costs and Dax (Germany) 15.761 15.745 -0,10% 14,77% normalized OPEX (+9% QoQ) are the main highlights for 2Q21. We fore- FTSE 100 (UK) 7.123 7.132 0,13% 10,40% see NIM (swap-adj.) improving by a limited 6bps QoQ. TRY spreads are CAC 40 (France) 6.817 6.813 -0,06% 22,73% expected to improve 20bps QoQ, yet the bank might revise down its 3.6%- PSI20 (Portugal) 5.134 5.152 0,34% 5,18% 3.8% NIM guidance for FY21. Strong TRY1.3bn subsidiary income is sup- RTSI (Rusia) 1.633 1.641 0,50% 18,28% portive of the bottom line. Total cumulative CoR (net) should reach Asia Previous Last Chg. YTD 150bps, vs. the budgeted <250bps for FY21 (Neutral). Nikkei (Japan) 27.820 27.820 0,00% 1,37% Arcelik (ARCLK.TI; OP) reported a net profit of TRY 531mn in 2Q21 Hang Seng (Hong Kong) 26.179 26.283 0,40% -3,48% (+30.5% YoY, -51.4% QoQ), somewhat below our estimate of TRY 589mn Shanghai Comp. (China) 3.458 3.495 1,05% 0,62% and the market average expectation of TRY 564mn for the period, attribut- KOSPI (South Korea) 3.270 3.260 -0,30% 13,47% able to FX translation impact and relatively higher interest expenses in Sensex (India) 54.278 54.403 0,23% 13,65% 2Q21. Arçelik’s revenues continued to grow robustly by 85.6% YoY (+11.9% QoQ) reaching TRY 14,534mn in 2Q21, and were in line with the Turkdex (Set. Price) Previous Last Chg. YTD market average expectation of TRY 14,521mn and our estimate of TRY INX30 (August 21) 1.561 1.552 -0,56% -6,42% 14,545mn for the period. Its quarterly EBITDA, which we calculate at TRY USD (August 21) 8,7350 8,753 0,21% 15,42% 1,429mn in 2Q21, was also in line with the market average expectation of EURO (August 21) 10,2834 10,277 -0,06% 10,09% TRY 1,452mn and our estimate of TRY 1,390mn. Arçelik has completed GOLD (August 21) 496,63 487,29 -1,88% 4,53% two strategic deals, acquiring Whirlpool Turkey and Hitachi’s international Portfolio Inclusion Inclusion Last Chg. BIST businesses towards the very end of 2Q21 and beginning of 3Q21, respec- Recommend. Date Price Close (%) Relative tively. Hence, following the announcement of its 2Q21 results, the Compa- Tofas 06/09/19 18,98 39,22 106,6% 42,8% ny has revised its guidance for 2021E to include the contribution of those Şişecam 18/01/21 7,82 8,18 4,6% 11,3% businesses. We thus expect the slight miss in net earnings and the upward Erdemir 18/01/21 15,19 20,52 35,1% 43,8% revision in Company guidance to have a rather neutral impact on its Yapi Kredi Bank 07/07/21 2,22 2,44 9,9% 17,0% shares’ near-term performance, while the outlook for 2H21E suggests a Arcelik 07/12/20 27,98 33,06 18,2% 9,7% workable balance of revenue growth and profitability, though at a relatively Tupras 11/05/21 95,75 98,10 2,5% 3,3% slower pace than the stellar performance achieved in 1H21, and with a Garanti BBVA 17/01/19 9,25 9,14 -1,2% 6,0% relatively lower operating margin due a strengthening base effect and Portfolio Yield (yoy) 75,2% 29,7% rising raw material costs. Portfolio Yield (mom) 10,3% 6,0% Revenues recorded robust growth; EBITDA margin came under pressure of rising raw material costs in 2Q21 – Arcelik’s revenues grew very >>>

>>> strongly by 85.6% YoY (+11.9% QoQ) to 14,534mn in 2Q21, through solid growth in both Turkey and international markets, and wi th the positive impact of a strong EUR & US$ against the TRY. International revenues improved 112.4% YoY (+17.4% QoQ) on strong organic growth of 60.2% YoY and positive currency effect, and revenues attained from Turkey rose by 47.6% YoY (+2.2% QoQ) in 2Q21. Th e operating margin, however, came under the pressure of the severe increase in raw material prices in 2Q21, and Arcelik has thus gene rated a quarterly EBITDA of TRY 1,429mn (-24.2% QoQ; +79.8% YoY) by our calculations for the period. The Company’s EBITDA margin declined by 4.7 pp QoQ (-0.3 -pp YoY) to 9.8% in 2Q21. Arçelik’s net other operating income has declined by 91.1% YoY (-86.3% QoQ) to TRY 19.1mn in 2Q21, due mainly to lower FX translation income from its operating activities and lack of one-time compensation gain of TRY 67mn recorded in 2Q20. Meanwhile, net financial expenses have increased by 20.0% QoQ (+8.5% YoY) due to rising interest and FX translation expenses in 2Q21. Arcelik’s effective tax rate was at 7.3% in 2Q21 (2Q20: 22.3%, 1Q21: 15.0%), and overall, net profits rose by 30.5% YoY, yet declined by 51.4% QoQ over an exceptionally strong base in 1Q21. Arcelik’s WC/sales have increased slightly to 27.4% at end-2Q21 (end-1Q21: 27.1%), and with the above mentioned acquisitions net debt/EBITDA rose to 2.02x at end-2Q21 (end-1Q21: 1.4x). 2021 guidance revised to include recently acquired Whirlpool Turkey’s and Hitachi’s global operations – Following the announcement of its 2Q21 results, Arcelik has revised its guidance figures to include the recently acquired Whirlpool Turkey’s and Hitachi’s global operations. Ac- cordingly, Arçelik expects its consolidated revenues to grow by c.50% in TRY terms (previously: 30%; 1H21: 76.4%), its EBITDA margin at c.11.0% (previously c.12.0%; 1H21: 12.0%), WC/Sales at c.25.0% (unchanged), and capex at €220mn (unchanged) in 2021E. We will be re- visiting our estimates and updating our valuation accordingly, providing further commentary shortly. Cimsa (CIMSA.TI; UR) has announced a net profit of TRY 419.6mn in 2Q21 (2Q20: TRY 46.0mn net profit). Please note that the Com- pany has generated TRY 289.8mn of income from discounted operations before minority interests in 2Q21 (2Q20: TRY 3.8mn). This is somewhat above both our in-house net profit expectation of TRY 187mn and the market consensus profit estimate of TRY 169mn. Total ne t profit for 1H21 reached TRY 580.5mn (1H20: TRY 37.8mn). The Company has generated TRY 59.8mn of profit from investments valued using the equity method in 2Q21 (2Q20: TRY 15.0mn). It recorded TRY 1.002bn of consolidated revenues in 2Q21 on 90.3% YoY top-line growth (2Q20: TRY 526.9mn). Our sales revenues forecast had been at TRY 702mn, and the market average consensus at TRY 781mn. TRY 212.6mn o f EBITDA was generated in 2Q21 (2Q20: TRY 104.6mn), above both our expectation of TRY 169mn and the market average expectation of TRY 179mn. The EBITDA margin rose to 21.2% in 2Q21 from 19.8% in 2Q20 on a 1.4pp YoY improvement. Erdemir (EREGL.TI; OP) reported a net profit of TRY 3,183mn with a remarkable advance of 5.6x YoY (+21.6% QoQ) on rising steel prices, in line with the market median expectation and our estimate of TRY 3,313mn for the period. Thanks to the sharp rise in steel prices, Group revenues rose 93.6% YoY (+37.0% QoQ) to TRY 14,333mn in 2Q21, in parallel to the market median expectation of T RY 14,007mn and our estimate of TRY 13,657mn for the period. EBITDA improved further by 4.2x YoY (+45.8% QoQ) to TRY 5,617mn, >>>

This document has been prepared by the Equity Research Department of Şeker Invest. The information and data used in this report have been obtained from public sources that are thought to be reliable and complete. However, Şeker Invest does not accept responsibility for any errors and omissions. This document should not be construed as a solicitation to buy or sell securities he- rein. This document is to be distributed to qualified emerging market investors only.

Şeker Yatırım Menkul Degerler A.S. - Buyukdere Cad. No:171 Metrocity A Blok Kat 4-5 SISLI /ISTANBUL Tel: (+90) 212 334 33 33 Pbx, Fax: (+90) 212 334 33 34, [email protected]

Market Watch Tuesday, August 10, 2021 www.sekeryatirim.com.tr

>>> also in line with the market median and our expectation of TRY 5,517mn for the period. Erdemir shares have advanced 13.8% out performing the BIST100 by 10.5% over the last month, attributable to expectations of a strong set of results in 2Q21. These expectations having been con- firmed, we may observe some profit taking initially, which we believe will be replaced with further interest in the Group sto cks, thanks to an even better outlook for the steelmakers’ operating performance in 3Q21E. Revenues grew strongly on a steep rise in steel prices – Steel prices have been rising steeply, and Erdemir’s product prices were on average c.61% higher in US$ terms YoY (c.+22% QoQ) in 2Q21. Meanwhile, the Group’s total sales volume was flattish at 2,012k in 2Q21. As such, quarterly revenues improved very strongly by 60.2% YoY (+21.9% QoQ) in US$ terms to US$ 1,732mn in 2Q21. Thanks also to the posit ive impact of TRY depreciation, Erdemir’s quarterly revenues rose very strongly by 93.6% YoY (+37.0% QoQ) in TRY terms to TRY 14,333mn in 2Q21. EBITDA/ton tripled YoY – Thanks mainly to the significant rise in steel prices, Erdemir’s EBITDA/ton of main product continued to improve re- markably by 3.3x YoY (+34.4% QoQ) to US$ 336/ton in 2Q21, even though iron ore prices were elevated in 2Q21. The Group ’s quarterly EBITDA thus rose robustly by 4.2x YoY (+45.8% QoQ) in TRY terms to TRY 5,617mn; the EBITDA margin rose markedly by 21.4 pp YoY over a weak base of 2Q20, and by 2.4 pp QoQ to a very strong 39.2% by our calculation in 2Q21. Net profits improved notably on strong operating performance – Erdemir has recorded net other income of TRY 10.0mn in 2Q21, 95.1% lower YoY (-61.1% QoQ), due mainly to the lack of TRY 135mn of one-time income recorded in 2Q20, which was a result of Isdemir’s (Erdemir subsidiary) case regarding its receivables against the PA, and the QoQ decline in its FX translation income. However, by the same token, and with rising gains from derivative instruments, Erdemir recorded a net financial income of TRY 135mn in 2Q21 as compared to TRY 136mn net financial losses recorded in 2Q20. This was below TRY 581mn net financial gains recorded in 1Q21, due to QoQ lower FX transla tion income and higher other net financial expenses in 2Q21. The Group’s effective tax rate has increased to 36.8% in 2Q21 (1Q21: 32.9%; 2Q20: 42.3% of 2Q20). Overall, Erdemir recorded a net profit of TRY 3,183mn, 5.6x higher YoY (+21.6% QoQ) in 2Q21. Erdemir’s net cash position has increased to TRY 948mn at end-2Q21, as expected, from TRY 203mn at end-1Q21. Kardemir (KRDMD.TI; OP) may report its 2Q21 results today, after the market close. Thanks mainly to the sharp rise in steel prices and a strong sales volume, we estimate the Company’s quarterly revenues having increased notably by c.111% YoY to TRY 3,671mn in 2Q21E. The Company is also likely to have increased its EBITDA generation by as much as 7.3x YoY (+64% QoQ) to TRY 1,336mn, thanks also to the steep rise in steel product prices and improvement in steel making margins in 2Q21E. We thus expect a strong bottom line print of T RY 769mn in 2Q21E, compared to TRY 106mn net losses recorded in 2Q20. The market average expectation for revenues and EBITDA are at TRY 3 ,454mn and TRY 1,254mn, respectively, which are slightly below our estimates, and at TRY 773mn for net income, which is in line with our estimate for the period. Turkish Airlines (THYAO.TI; MP) plans to announce its 2Q21 results today. The Company will be holding a conference call tomorrow at 14:00 IST time (GMT+3) to discuss its financial results. Turkish Airlines’ total passenger traffic had improved notably by 601% YoY to 8.2mn PAX in 2Q21 on a very weak base in 2Q20, which was impacted severely by the COVID-19 pandemic. The carrier’s cargo volume has also risen by 45.7% YoY in 2Q21. Accordingly, we expect its quarterly revenues to have increased by 206% YoY to TRY 18,919mn in 2Q21E. The market average expectation for revenues is at TRY 19,249mn, similar to our estimate for the period. THY's EBITDA margin is likely to have remained buoyant, thanks to rising PAX volume, the ongoing support of its cargo business, and continuing cost reduction. We estimate t he carrier’s EBITDA improving notably by 3.8x YoY in TRY terms by our own calculations (that exclude net other operating income, profits f rom investments accounted by the equity method & income from government incentives) to TRY 4,481mn in 2Q21E. The market average expectation f or EBITDA is somewhat lower than ours, at TRY 4,195mn for 2Q21E. We estimate the carrier recording a net income in the order of TRY 1,2 98mn in 2Q21E, which is at the highest end of the market expectation range that averages at TRY 831mn in 2Q21E. Türk Telekom (TTKOM.TI; OP) recorded TRY 1,272mn net income in 2Q21 (29.8% YoY, -6.1% QoQ), exceeding the market average expectation of TRY 1,157mn and our estimate of TRY 1,152mn, mainly owing to a better-than-expected operating performance in 2Q21. The Group has extended its resilient operating performance, where its consolidated quarterly revenues grew by 17.4% YoY (+7.8 % QoQ) to TRY 8,181mn in 2Q21, in line with the market average expectation of TRY 8,030mn and our estimate of TRY 8,198mn. Consolidated EBITDA grew more strongly by 24.3% YoY (+5.7% QoQ) to reach TRY 4,022mn in 2Q21, exceeding the market average expectation of TRY 3,7 70mn, yet in line with our expectation of TRY 3,897mn for the period. Following the announcement of its 2Q21 results, Türk Telekom has upwardly revised its guidance figures for 2021E with a better contribution from its mobile business, and improved opex outlook. We expect both the earnings beat and the upward revision in the Group guidance to reflect positively on its near-term share performance. Solid growth in broadband sustained, while mobile growth accelerated in 2Q21 - Türk Telekom has recorded 199k net broadband additions amid normalized demand in 2Q21, while its broadband ARPU reached TRY 63.3 on flattish growth of 14.0% YoY. Yet revenue growth in broadband remained strong, having increased by 30.2% YoY in 2Q21, thanks to strong subscriber acquisitions over the LTM, pric e adjustments made earlier, and ongoing upselling efforts. The mobile subscriber base also grew by 67k net adds, as 199k net additions in t he post-paid segment have surpassed the declines in the pre-paid segment, most of which were attributable to the pre-paid to post-paid conversion trend in the market. Meanwhile, mobile ARPU grew by 14.8% YoY to TRY 36.4 in 2Q21, thanks to the rising share of post-paid subscribers in the total subscriber base, pricing actions, portfolio optimization and upselling, especially to its premium segment product ‘Prime’. Mobile revenue growth thus picked up eye-catchingly to 17.1% YoY in 2Q21. As follows, Türk Telekom’s consolidated revenues grew by 17.4% YoY to TRY 8,181mn, sup- ported also by a strong rise of 39.5% in its international revenues in 2Q21. Group EBITDA grew more strongly by 24.3% YoY to TRY 4,022mn by Company reporting in 2Q21, where the EBITDA margin improved c.2.0 pp YoY to 49.2% thanks to strong growth in higher-margin fixed broadband revenues, improved profitability in the mobile segment, and COVID-19 pandemic related savings. The margin has, however, declined by 0.9 pp QoQ over an exceptionally strong 1Q21 with some normalization in operational expenses. Turk Telekom’s net income from its invest- ing activities rose 3.0x YoY (+4.9% QoQ) to TRY 219mn, yet quarterly net financial expenses surged 38.5% YoY (+62.9% QoQ) to TRY 874mn due to higher interest rates and restructuring of hedging contracts amid high volatility of the TRY, while net FX exposure re mained positive at US$ 38mn by end-2Q21. The Group’s bottom line thus improved by 29.8% YoY (-6.7% QoQ) to TRY 1,272mn in 2Q21. Turk Telekom’s net debt rose to TRY 18.1bn (end-1Q21: TRY 16.5bn); its net debt/EBITDA improved to 1.08x at end-2Q21 (end-1Q21: 1.15x).

Şeker Yatırım Menkul Degerler A.S. - Buyukdere Cad. No:171 Metrocity A Blok Kat 4-5 SISLI /ISTANBUL Tel: (+90) 212 334 33 33 Pbx, Fax: (+90) 212 334 33 34, [email protected]

Market Watch Tuesday, August 10, 2021 www.sekeryatirim.com.tr

2021E guidance revised up – Türk Telekom has revised its guidance figures up for 2021E, as its mobile segment has been performing better than initially targeted in 1H21. The Group also believes that this segment is apt to further enjoy the positive impact of inc reased mobility and full normalization that started on July 1st, 2021. Accordingly, Turk Telekom expects its core revenues to increase by c.17% (prev.: c.16%; 1H21: 18.8%), its EBITDA to reach c.TRY 15.8bn (prev.: TRY 15.4bn; 1H21: TRY 7.8bn), while envisaging a capex of TRY 8.5bn (prev.: 8.0bn; 1H21: TRY 2.5bn) in 2021E. Türk Telekom plans to hold a conference call and webcast today at 15:00 IST time (GMT+3); we will revisit our valuation and publish our commentary after this call. VakifBank (VAKBN.TI; MP) posted TRY660mn net income (-12% QoQ) in its 2Q21 bank-only financial statements. This exceeds our TRY628mn call and the TRY639mn RT consensus estimate by 5% and 3%, respectively. The bank’s 6M profit of TRY1,410mn was down 57% YoY with a rather weak ROAE of 6.0% (Guidance: High-single digit). Management revised its guidance for 2021, yet maintains its high-single digit ROE budget for now. There is downside risk to the NIM guidance of 3%. Fee guidance is revised up to low-double digit growth from flat, OPEX guidance is reduced to mid-teens from high- teens, and CoR (net) budget is reduced to 50bps from the previous 150bps. We note slight NIM improvement with a downside risk to NIM guidance, a visible rebound in fee base YoY, pick-up in consumer lending fueled by mortgage and credit card loans, further market share loss in deposits, accelerated new NPL inflows, and lower coverages as the quarterly highlights. There should be no major market reaction to the results. We reduce our target price to TRY3.95 from TRY4.30 as we cut our NI estimates by 12% on average for FY21-23. Our new target price offers 12% upside. We maintain “Market Perform”. The bank is trading at a 2021E P/E of 2.9x (15% discount to domestic peers) and P/BV of 0.3x with a ROAE of 9.6%.

Şeker Yatırım Menkul Degerler A.S. - Buyukdere Cad. No:171 Metrocity A Blok Kat 4-5 SISLI /ISTANBUL Tel: (+90) 212 334 33 33 Pbx, Fax: (+90) 212 334 33 34, [email protected]