Park Slumps First Time in 3 Days on Output Halt: Istanbul Mover
Park Elektrik Uretim Madencilik Sanayi ve Ticaret AS, the Turkish miner owned by Ciner Group, slumped for the first time in three days on concern a halt in production of a raw material will hurt earnings.
The shares fell as much as 3.3 percent and traded down 1.5 percent at 5.44 liras at the close in Istanbul, paring the third-quarter rally to 23 percent. Trading was about 77 percent of the stock’s three-month daily average volume, data compiled by Bloomberg show. The Borsa Istanbul National 100 Index (XU100) slumped 1.1 percent.
Park temporarily suspended production of asphaltite, used in power generation, at its facility in the southeastern province of Sirnak, the Istanbul-based company said in a statement after the market closed yesterday. The material accounted for 13 percent of revenue in the second quarter, Park said. The company that purchases the product has halted electricity production, according to the statement. Park sells the material to Silopi Elektrik Uretim AS, another Ciner unit, it says on its website.
“Investors are probably worried that the development would decrease net income,” Ece Mandaci, an analyst at Burgan Securities in Istanbul, said in a phone interview today.
Park reported a profit of 21.9 million liras ($11 million) in the second quarter, down 51 percent from a year earlier.
Park Termik Elektrik Sanayi ve Ticaret AS, a Park Elektrik unit, has decided to distribute dividends, the company said yesterday in a separate filing. Park Elektrik will get 6.08 million liras from the payout, it said.
“This is a positive development that may have prevented a bigger slump in the shares,” Mandaci said. The analyst has a buy recommendation for Park Elektrik with a 12-month price target of 8.20 liras.
Park Elektrik trades at 6.4 times estimated 12-month earnings compared with a multiple of 9.8 for Turkey’s benchmark index, according to data compiled by Bloomberg. Ten analysts have a buy recommendation on the stock, with none having a hold or sell, data show.
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