Dogus Climbs to Record on Earnings, Dividend Pay: Istanbul Mover

Dogus Otomotiv Servis & Ticaret AS (DOAS), the Turkish importer of Volkswagen AG (VOW) vehicles, climbed to record as it announced plans for a better-than-expected dividend payout after net income topped analysts’ estimates.

Dogus rose 4.9 percent to 10.75 liras at 3:49 p.m. in Istanbul, advancing for a ninth day to the highest level since the shares started trading in June 2004. About 770,000 shares changed hands, or 1.9 times the stock’s three-month daily average, according to data compiled by Bloomberg. The Istanbul Stock Exchange National 100 (XU100) index gained 1.3 percent.

Dogus reported net income of 255.9 million liras ($142 million) for 2012, up 81 percent from the previous year. The figure exceeded the 250.8 million-lira average estimate compiled from 14 analysts surveyed by Bloomberg. Sales rose 6.7 percent to 5.13 billion liras ($2.9 billion), according to data released after market closed yesterday.

The Dogus Otomotiv board proposed to distribute 220 million liras, or 1 lira a share, in gross cash dividends, according to a filing from the Istanbul-based company after the earnings were announced. The figure, corresponding to a dividend yield of 9.8 percent from yesterday’s closing price, was “effective” in spurring today’s stock gain, according to Serhat Kaya, an analyst at Oyak Securities in Istanbul.

“Last year, Dogus distributed 71 percent of profit to shareholders as dividends,” Kaya said in a phone interview. “This year, the rate has been boosted to 86 percent. The market obviously has a positive view.”

Koc Holding

Kaya has an “outperform” recommendation for Dogus Otomotiv, with a 12-month price target of 11.25 liras. Twelve analysts recommend investors buy the shares, six say hold and one advises selling, according to data compiled by Bloomberg.

Koc Holding AS (KCHOL), Turkey’s biggest group of companies, reported 2012 net income of 2.31 billion liras today, also beating the 2.13 billion-lira average estimate of 13 analysts in a Bloomberg survey. Aygaz AS (AYGAZ), a liquefied petroleum gas importer and retailer owned by Koc, yesterday reported 303.5 million liras in 2012 profit, topping the 288.1 million-lira average estimate of 14 analysts surveyed by Bloomberg.

Koc rose 4.5 percent to 10.45 liras, gaining most since November 2011 on a closing basis, while Aygaz advanced 2.9 percent to 10.6 liras, heading for the highest close since Jan. 25.

To contact the reporter on this story: Taylan Bilgic in Istanbul at tbilgic2@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net