Tofas Advances as Fiat Affiliate Plans New Model: Istanbul Mover
Shares of Tofas advanced 2.2 percent to 13.9 liras at the close in Istanbul, the highest level since Oct. 21 and taking the two-day gain to 3.7 percent. Almost 1.5 million shares traded, just above the three-month daily average, data compiled by Bloomberg show. The Borsa Istanbul National 100 (XU100) Index added 0.5 percent and bringing this week’s increase to 4 percent.
Istanbul-based Tofas, in which Italian carmaker Fiat and Koc Holding AS (KCHOL) of Turkey each own 38 percent, plans to start manufacturing a new passenger car model in the second half of 2015, according to a statement to Borsa Istanbul today. The carmaker expects to invest $520 million to roll out 580,000 vehicles by 2023, exporting a third of the total, it said. Talks with Fiat are “in the final phase,” according to Tofas.
The company’s export plans for the new model are “especially positive for the stock,” Ozgur Ucur, an analyst at Finans Invest in Istanbul, said by phone. “Export volumes of the current passenger car model, Linea, were limited.”
The carmaker ranks third in domestic passenger car market share with 8.4 percent, according to a presentation on its website. It exported 1,924 Linea cars in the first half out of 85,464 vehicles sold abroad, the document shows.
Second-quarter profit fell 13 percent to 109 million liras ($55 million), while net income in the three months ended Sept. 30 will climb to 119 million liras, according to the average of six analyst estimates compiled by Bloomberg.
Tofas shares jumped 33 percent in Istanbul this year, outpacing the benchmark index’s 1.4 percent gain. Eleven analysts recommend buying the company’s stock, while 14 say hold and three advise selling, data compiled by Bloomberg show.
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