Bagfas Bandirma Gubre Fabrikalari AS (BAGFS), a Turkish fertilizer maker, climbed to the highest level in a month as investors bet an order from a larger local competitor will help boost earnings during the low season.
The shares rose 3.6 percent to 43.6 liras at the close in Istanbul, advancing for a second day to the highest level since June 20. More than 163,000 shares changed hands, or 2.6 times the three-month daily average, according to data compiled by Bloomberg. The benchmark Borsa Istanbul National 100 (XU100) index fell less than 0.1 percent to 77,022.76 points, paring its weekly gain to 4.2 percent.
Istanbul-based Bagfas received a $18.3 million chemical fertilizer order from Gubre Fabrikalari TAS (GUBRF), according to a statement to the bourse today. Gubre is Turkey’s largest specialty chemicals maker by sales, according to data compiled by Bloomberg. Deliveries of the 50,000 metric-ton order will begin this month and will continue to September, the company said.
“The order amounts to 12 percent of last year’s sales,” Umut Ozturk, an analyst at Burgan Securities in Istanbul, said by phone. “It’s a good surprise for the summer season.” Fertilizer sales are not very active in the summer and generally pick up pace in the first and fourth quarters, Ozturk said.
Bagfas reported net income of 1.94 million liras ($1 million) in the first quarter, down 85 percent from the same period last year. Two analysts recommend buying the stock, while Ozturk is one of four that say hold, according to data compiled by Bloomberg.
The shares trade at 13.1 times estimated 12-month earnings, data compiled by Bloomberg show. That compares with 6.1 for Istanbul-based Gubre, 9.5 for Tel Aviv-based Israel Chemicals Ltd. (ICL) and 12.3 for Jubail-based Saudi Arabian Fertilizer Co. (SAFCO)
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