Flashnote Global Research CEMEA Dislocation barometer for Turkish stocks April update to look at beaten-up stocks and those that have held up relatively well The barometer measures the spread between share price performance and consensus revisions on 2009 net income estimates for 12-month, six-month and one-month periods, theoretically pointing to oversold stocks Turkish Airlines, Aygaz and Petrol Ofisi are most oversold Akbank and Dogan Holding are most overbought Erol Hullu* Analyst HSBC Yatırım Menkul Değerler A.Ş. +90 212 376 4616 erolhullu@hsbc.com.tr We temporarily put aside our own ratings and valuations and employ an unbiased tool that tries to look at dislocation for 55 major Turkish stocks. The principle of the barometer is simple: we compare share price performance of stocks over the past 12 months, six months and one month and contrast that with consensus EPS revisions over the same periods. The higher the dislocation in percentage terms, the more stocks have been oversold, theoretically. We write theoretically as there may well be good reasons for some stocks to have been heavily sold, not least the traditional lag of sell-side estimates vs the market in a downswing. On this approach and again from a theoretical standpoint, the April update revealed that the market s focus has not intensified on specific names and Akbank and Dogan Holding stand out as the major overbought stocks. Oversold stocks were diversified again, yet Turkish Airlines and Aygaz once again topped the list with the new addition of Petrol Ofisi. View HSBC Global Research at: http://www.research.hsbc.com *Employed by a non-us affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to NYSE and/or NASD regulations Issuer of report: HSBC Yatırım Menkul Değerler A.Ş. Disclaimer & Disclosures This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it Most dislocated Mid-to-Large Cap* Turkish stocks (descending order) 12M 6M 1M Oversold Turkish Airlines Aygaz Petrol Ofisi Aygaz Turkish Airlines Selcuk Ecza Enka Insaat Petrol Ofisi Anadolu Efes Eregli Petkim Turk Telekom Asya Bank Albaraka Turk Aygaz Overbought Dogan Holding Dogan Holding Eczacibasi Ilac Akbank Selcuk Ecza Dogan Holding Petkim Turkcell Tekfen Holding Tav Akbank Tofas Aksigorta Eregli Albaraka Turk Source: Thomson Financial Datastream * Market caps higher than TRY500m
2 12-month dislocation barometer for Mid-to-Large Cap* Turkish stocks Share price performance DOHOL AKGRT T AVHL PET KM VAKBN ISCTR SAHOL AKBNK TCELL TUPRS HALKB TEBNK EREGL FROTO AEFES SELEC ECILC PTOFS YKBNK CCOLA KCHOL GARAN SISE ENKAI 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% BIMAS AYGAZ THYAO Dislocation barometer for Turkish stocks ARCLK TOASO ASYAB -60.0% -70.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 2009 net income revision Source: Thomson Financial Datastream * Market caps higher than TRY500m
Six-month dislocation barometer for Mid-to-Large Cap* Turkish stocks AKBNK Share price performance TCELL GARAN ISCT R TUPRS SAHOL VAKBN HALKB DOHOL TAVHL AKGRT FROTO BIMAS CCOLA 10.0% SELEC 0.0% -10.0% AEFES -20.0% -30.0% YKBNK SISE -40.0% KCHOL ENKAI -50.0% ALBRK PETKM PTOFS THYAO AYGAZ Dislocation barometer for Turkish stocks TEBNK EREGL ARCLK TKFEN TOASO ASYAB -60.0% -70.0% -80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2009 net income revision Source: Thomson Financial Datastream * Market caps higher than TRY500m 3
4 One-month dislocation barometer for Mid-to-Large Cap* Turkish sstocks ECILC 40.0% 35.0% ALBRK 30.0% 25.0% AKBNK Dislocation barometer for Turkish stocks Share price performance TKFEN TOASO TUPRS ARCLK SAHOL KCHOL PET KM VAKBN GARAN ISCT R TEBNK ASYAB CCOLA 10.0% BIMAS SISE YKBNK TAVHL HALKB 20.0% 15.0% 5.0% AYGAZ THYAO AKGRT FROTO PT OFS TCELL 0.0% SELEC TTKOM ENKAI AEFES -5.0% -70.0% -60.0% -50.0% -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% EREGL -10.0% Source: Thomson Financial Datastream * Market caps higher than TRY500m 2009 net income revision
12 months - dislocation data set for the sample universe (including small caps) - TRYm HSBC 2009 Net income revision Share price performance Name RIC rating Then Now change Then Now change Dislocation Rank AK ENERJI AKENR.IS N (V) 8.2 40.0 388.8% 8.6 6.1-29.1% 418% 1 SINPAS REIC SNGYO.IS OW (V) 40.4 104.8 159.4% 4.5 1.8-59.3% 219% 2 TURK HAVA YOLLARI THYAO.IS N/R 300.4 509.6 69.6% 6.3 6.6 4.8% 65% 3 ANADOLU SIGORTA ANSGR.IS OW (V) 65.5 87.0 32.8% 1.0 0.9-9.9% 43% 4 AYGAZ AYGAZ.IS OW (V) 207.5 197.7-4.7% 3.8 2.0-46.3% 42% 5 ANADOLU HAYAT ANHYT.IS OW (V) 51.2 49.6-3.1% 2.2 1.3-40.4% 37% 6 ENKA INSAAT ENKAI.IS OW (V) 988.7 786.0-20.5% 12.3 5.9-52.0% 32% 7 TURCAS TRCAS.IS UW (V) 143.7 97.6-32.1% 6.6 2.6-61.0% 29% 8 EREGLI DEMIR CELIK EREGL.IS UW (V) 975.0 619.1-36.5% 6.9 3.1-54.6% 18% 9 ASYA BANK ASYAB.IS UW (V) 384.9 202.9-47.3% 3.1 1.1-64.5% 17% 10 TEB TEBNK.IS N (V) 267.3 173.7-35.0% 1.4 0.7-52.2% 17% 11 FORD OTOMOTIV FROTO.IS N (V) 613.0 367.1-40.1% 10.4 4.5-56.3% 16% 12 SISECAM SISE.IS N (V) 307.8 233.8-24.0% 1.7 1.0-39.4% 15% 13 KOC HOLDING KCHOL.IS N (V) 1,372.3 1,200.5-12.5% 3.2 2.3-27.6% 15% 14 SEKERBANK SKBNK.IS N/R 228.1 117.7-48.4% 2.5 0.9-63.0% 15% 15 HALK BANK HALKB.IS OW (V) 1,636.8 1,032.2-36.9% 7.4 3.6-50.8% 14% 16 PETROL OFISI PTOFS.IS UW (V) 355.9 327.0-8.1% 4.9 3.8-21.7% 14% 17 ANADOLU CAM ANACM.IS OW (V) 88.3 50.0-43.3% 2.4 1.1-54.4% 11% 18 IS REIT ISGYO.IS N (V) 44.9 46.5 3.6% 1.0 1.0-5.9% 9% 19 TUPRAS TUPRS.IS OW (V) 1,124.5 734.1-34.7% 29.5 16.7-43.4% 9% 20 ECZACIBASI ILAC ECILC.IS N/R 47.0 43.1-8.3% 1.2 1.0-16.5% 8% 21 CIMSA CIMSA.IS N (V) 124.8 70.6-43.4% 6.7 3.3-49.8% 6% 22 GARANTI BANK GARAN.IS N (V) 2,773.3 2,014.5-27.4% 3.5 2.4-33.3% 6% 23 SELCUK ECZA SELEC.IS N/R 173.6 158.5-8.7% 2.0 1.7-14.3% 6% 24 YAPI VE KREDI BANKASI YKBNK.IS UW (V) 1,368.7 1,111.7-18.8% 2.3 1.7-24.0% 5% 25 TURKCELL TCELL.IS N (V) 2,082.4 1,286.9-38.2% 20.9 12.3-41.2% 3% 26 COCA COLA ICECEK CCOLA.IS N (V) 245.2 185.5-24.4% 10.6 7.9-25.9% 2% 27 ANADOLU EFES AEFES.IS N (V) 483.0 418.5-13.3% 11.9 10.3-13.4% 0% 28 AKCANSA AKCNS.IS OW (V) 251.1 118.5-52.8% 5.4 2.5-52.9% 0% 29 VAKIFBANK VAKBN.IS OW (V) 1,322.4 675.6-48.9% 2.4 1.3-48.1% -1% 30 TOFAS TOASO.IS OW (V) 414.5 134.5-67.5% 4.3 1.5-66.0% -1% 31 TRAKYA CAM TRKCM.IS N (V) 191.3 111.2-41.9% 1.5 0.9-39.3% -3% 32 KARDEMIR KRDMD.IS N/R 144.5 66.4-54.0% 1.0 0.5-50.5% -4% 33 SABANCI HOLDING SAHOL.IS OW (V) 1,423.9 916.3-35.7% 4.2 2.9-31.3% -4% 34 BIM BIMAS.IS OW (V) 161.9 155.9-3.7% 35.0 35.3 0.7% -4% 35 ARCELIK ARCLK.IS N (V) 415.7 123.4-70.3% 5.3 1.8-65.5% -5% 36 ADANA ADANA.IS N (V) 128.6 61.1-52.5% 6.1 3.5-43.5% -9% 37 IS BANK ISCTR.IS N (V) 2,894.3 1,813.4-37.3% 4.9 3.7-24.3% -13% 38 AKSIGORTA AKGRT.IS OW (V) 151.9 61.3-59.6% 4.9 2.6-46.5% -13% 39 VESTEL BEYAZ VESBE.IS N/R 86.6 32.5-62.5% 2.2 1.1-48.8% -14% 40 TAV HAVALIMANLARI TAVHL.IS N (V) 181.1 68.6-62.1% 5.6 2.9-47.9% -14% 41 PETKIM PETKM.IS UW (V) 128.3 61.9-51.8% 6.5 4.1-37.2% -15% 42 HURRIYET HURGZ.IS UW (V) 148.2 22.2-85.0% 1.9 0.6-67.9% -17% 43 AKBANK AKBNK.IS UW (V) 3,022.0 2,042.1-32.4% 5.6 4.9-12.9% -20% 44 DOGAN HOLDING DOHOL.IS N (V) 485.8 110.6-77.2% 0.8 0.6-32.9% -44% 45 ALARKO HOLDING ALARK.IS N/R 95.1 16.9-82.2% 2.7 1.8-34.3% -48% 46 DOGUS OTO DOAS.IS N (V) 105.3-34.1-132.4% 5.2 2.0-61.6% -71% 47 DOGAN YAYIN HOLDING DYHOL.IS UW (V) 137.5-70.8-151.5% 2.3 0.5-76.3% -75% 48 * UW (V): Underweight (V), OW (V): Overweight (V), N (V): Neutral (V), UW: Underweight, OW: Overweight, N: Neutral, N/R: Not Rated Source: Thomson Financial Datastream, HSBC estimates 5
6 months - Dislocation data set for the sample universe (including small caps) - TRYm HSBC 2009 Net income revision Share price performance Name RIC rating Then Now change Then Now change Dislocation Rank SINPAS REIC SNGYO.IS OW (V) 51.3 104.8 104.3% 4.5 1.8-59.3% 164% 1 AYGAZ AYGAZ.IS OW (V) 103.4 197.7 91.2% 3.2 2.0-36.5% 128% 2 TURK HAVA YOLLARI THYAO.IS N/R 265.0 509.6 92.3% 6.5 6.6 0.8% 92% 3 ANADOLU SIGORTA ANSGR.IS OW (V) 66.4 87.0 31.1% 1.3 0.9-28.3% 59% 4 ANADOLU HAYAT ANHYT.IS OW (V) 51.5 49.6-3.6% 3.1 1.3-57.4% 54% 5 PETROL OFISI PTOFS.IS UW (V) 301.6 327.0 8.4% 6.2 3.8-38.4% 47% 6 PETKIM PETKM.IS UW (V) 54.0 61.9 14.5% 5.5 4.1-25.1% 40% 7 SEKERBANK SKBNK.IS N/R 150.1 117.7-21.6% 2.3 0.9-58.6% 37% 8 ALBARAKA TURK ALBRK.IS N/R 114.5 125.7 9.8% 3.5 2.6-24.9% 35% 9 IS REIT ISGYO.IS N (V) 39.2 46.5 18.6% 1.1 1.0-15.0% 34% 10 KOC HOLDING KCHOL.IS N (V) 1,367.8 1,200.5-12.2% 4.1 2.3-43.5% 31% 11 TURCAS TRCAS.IS UW (V) 125.8 97.6-22.4% 5.5 2.6-53.1% 31% 12 SISECAM SISE.IS N (V) 258.1 233.8-9.4% 1.6 1.0-37.9% 28% 13 ENKA INSAAT ENKAI.IS OW (V) 969.5 786.0-18.9% 10.6 5.9-44.3% 25% 14 YAPI VE KREDI BANKASI YKBNK.IS UW (V) 1,281.3 1,111.7-13.2% 2.7 1.7-35.7% 22% 15 VESTEL BEYAZ VESBE.IS N/R 67.2 32.5-51.7% 3.8 1.1-71.1% 19% 16 ASYA BANK ASYAB.IS UW (V) 331.1 202.9-38.7% 2.6 1.1-57.3% 19% 17 TRAKYA CAM TRKCM.IS N (V) 154.0 111.2-27.8% 1.6 0.9-43.8% 16% 18 HALK BANK HALKB.IS OW (V) 1,450.0 1,032.2-28.8% 6.6 3.6-44.8% 16% 19 TAV HAVALIMANLARI TAVHL.IS N (V) 101.8 68.6-32.6% 5.6 2.9-47.9% 15% 20 KARDEMIR KRDMD.IS N/R 114.3 66.4-41.9% 1.1 0.5-54.5% 13% 21 SABANCI HOLDING SAHOL.IS OW (V) 1,316.5 916.3-30.4% 5.0 2.9-42.8% 12% 22 AKSIGORTA AKGRT.IS OW (V) 101.0 61.3-39.3% 5.1 2.6-49.0% 10% 23 FORD OTOMOTIV FROTO.IS N (V) 623.6 367.1-41.1% 9.2 4.5-50.7% 10% 24 ANADOLU EFES AEFES.IS N (V) 465.4 418.5-10.1% 12.8 10.3-19.5% 9% 25 TEB TEBNK.IS N (V) 329.8 173.7-47.3% 1.5 0.7-56.7% 9% 26 COCA COLA ICECEK CCOLA.IS N (V) 227.2 185.5-18.4% 10.8 7.9-27.3% 9% 27 TOFAS TOASO.IS OW (V) 305.4 134.5-55.9% 4.0 1.5-63.5% 8% 28 ARCELIK ARCLK.IS N (V) 262.5 123.4-53.0% 4.6 1.8-60.4% 7% 29 CIMSA CIMSA.IS N (V) 109.1 70.6-35.3% 5.8 3.3-41.9% 7% 30 TUPRAS TUPRS.IS OW (V) 1,121.2 734.1-34.5% 28.0 16.7-40.4% 6% 31 VAKIFBANK VAKBN.IS OW (V) 1,097.7 675.6-38.5% 2.3 1.3-44.2% 6% 32 GARANTI BANK GARAN.IS N (V) 2,835.8 2,014.5-29.0% 3.6 2.4-33.7% 5% 33 BIM BIMAS.IS OW (V) 192.0 155.9-18.8% 46.0 35.3-23.4% 5% 34 AKCANSA AKCNS.IS OW (V) 213.4 118.5-44.5% 4.7 2.5-45.9% 1% 35 TEKFEN HOLDING TKFEN.IS OW (V) 319.6 111.9-65.0% 8.2 2.9-64.9% 0% 36 ANADOLU CAM ANACM.IS OW (V) 95.3 50.0-47.5% 2.1 1.1-47.4% 0% 37 IS BANK ISCTR.IS N (V) 2,770.0 1,813.4-34.5% 5.7 3.7-34.4% 0% 38 EREGLI DEMIR CELIK EREGL.IS UW (V) 1,698.6 619.1-63.6% 8.0 3.1-61.0% -3% 39 AKBANK AKBNK.IS UW (V) 2,886.7 2,042.1-29.3% 6.2 4.9-20.7% -9% 40 TURKCELL TCELL.IS N (V) 2,003.3 1,286.9-35.8% 16.6 12.3-25.7% -10% 41 SELCUK ECZA SELEC.IS N/R 173.0 158.5-8.4% 1.7 1.7 1.8% -10% 42 HURRIYET HURGZ.IS UW (V) 118.3 22.2-81.3% 1.7 0.6-64.3% -17% 43 ADANA ADANA.IS N (V) 100.4 61.1-39.2% 4.4 3.5-21.5% -18% 44 DOGAN HOLDING DOHOL.IS N (V) 377.3 110.6-70.7% 1.1 0.6-48.1% -23% 45 GLOBAL YATIRIM GLYHO.IS N/R 61.9 0.0-100.0% 0.9 0.3-70.3% -30% 46 ALARKO HOLDING ALARK.IS N/R 73.6 16.9-77.1% 2.6 1.8-31.8% -45% 47 DOGUS OTO DOAS.IS N (V) 76.0-34.1-144.9% 3.9 2.0-49.7% -95% 48 DOGAN YAYIN HOLDING DYHOL.IS UW (V) 90.1-70.8-178.6% 2.0 0.5-72.9% -106% 49 * UW (V): Underweight (V), OW (V): Overweight (V), N (V): Neutral (V), UW: Underweight, OW: Overweight, N: Neutral, N/R: Not Rated Source: Thomson Financial Datastream, HSBC estimates 6
1 month - Dislocation data set for the sample universe (including small caps) - TRYm HSBC 2009 Net income revision Share price performance Name RIC rating Then Now change Then Now change Dislocation Rank DOGUS OTO DOAS.IS N (V) -0.9-34.1 3651.6% 1.7 2.0 17.2% 3634% 1 KARDEMIR KRDMD.IS N/R 29.9 66.4 122.4% 0.5 0.5 2.0% 120% 2 DOGAN YAYIN HOLDING DYHOL.IS UW (V) -48.9-70.8 45.0% 0.5 0.5 20.0% 25% 3 ANADOLU SIGORTA ANSGR.IS OW (V) 80.6 87.0 7.9% 0.9 0.9 0.0% 8% 4 PETROL OFISI PTOFS.IS UW (V) 312.2 327.0 4.8% 3.7 3.8 3.2% 2% 5 AK ENERJI AKENR.IS N (V) 41.0 40.0-2.4% 6.3 6.1-3.2% 1% 6 SELCUK ECZA SELEC.IS N/R 163.0 158.5-2.8% 1.7 1.7-0.6% -2% 7 ANADOLU EFES AEFES.IS N (V) 450.1 418.5-7.0% 10.8 10.3-4.6% -2% 8 IS REIT ISGYO.IS N (V) 46.6 46.5-0.4% 0.9 1.0 3.2% -4% 9 TURK TELEKOM TTKOM.IS N (V) 2,262.2 2,124.4-6.1% 3.9 3.9-1.0% -5% 10 AYGAZ AYGAZ.IS OW (V) 204.9 197.7-3.5% 2.0 2.0 2.0% -6% 11 FORD OTOMOTIV FROTO.IS N (V) 359.8 367.1 2.0% 4.2 4.5 8.6% -7% 12 AKSIGORTA AKGRT.IS OW (V) 60.6 61.3 1.1% 2.4 2.6 9.7% -9% 13 GUBRETAS GUBRF.IS N (V) 133.4 121.0-9.3% 5.2 5.2 0.0% -9% 14 HALK BANK HALKB.IS OW (V) 1,117.8 1,032.2-7.7% 3.6 3.6 1.7% -9% 15 SEKERBANK SKBNK.IS N/R 121.4 117.7-3.1% 0.9 0.9 6.8% -10% 16 SISECAM SISE.IS N (V) 245.4 233.8-4.7% 1.0 1.0 5.3% -10% 17 BIM BIMAS.IS OW (V) 165.5 155.9-5.8% 33.5 35.3 5.2% -11% 18 TAV HAVALIMANLARI TAVHL.IS N (V) 73.0 68.6-6.0% 2.8 2.9 5.1% -11% 19 YAPI VE KREDI BANKASI YKBNK.IS UW (V) 1,205.6 1,111.7-7.8% 1.7 1.7 3.6% -11% 20 TURKCELL TCELL.IS N (V) 1,471.4 1,286.9-12.5% 12.3 12.3-0.2% -12% 21 PETKIM PETKM.IS UW (V) 70.3 61.9-12.0% 4.0 4.1 2.0% -14% 22 TURCAS TRCAS.IS UW (V) 107.5 97.6-9.2% 2.5 2.6 4.9% -14% 23 ENKA INSAAT ENKAI.IS OW (V) 977.8 786.0-19.6% 6.2 5.9-4.8% -15% 24 ASYA BANK ASYAB.IS UW (V) 210.9 202.9-3.8% 1.0 1.1 11.0% -15% 25 TEB TEBNK.IS N (V) 180.3 173.7-3.6% 0.6 0.7 14.0% -18% 26 IS BANK ISCTR.IS N (V) 1,886.4 1,813.4-3.9% 3.3 3.7 14.0% -18% 27 COCA COLA ICECEK CCOLA.IS N (V) 198.6 185.5-6.6% 7.1 7.9 11.3% -18% 28 TURK HAVA YOLLARI THYAO.IS N/R 515.9 509.6-1.2% 5.6 6.6 17.0% -18% 29 EREGLI DEMIR CELIK EREGL.IS UW (V) 860.2 619.1-28.0% 3.4 3.1-9.3% -19% 30 GARANTI BANK GARAN.IS N (V) 2,132.4 2,014.5-5.5% 2.1 2.4 14.0% -20% 31 ANADOLU HAYAT ANHYT.IS OW (V) 57.3 49.6-13.4% 1.2 1.3 7.3% -21% 32 ANADOLU CAM ANACM.IS OW (V) 54.0 50.0-7.4% 1.0 1.1 13.4% -21% 33 AKCANSA AKCNS.IS OW (V) 115.7 118.5 2.4% 2.0 2.5 23.5% -21% 34 KOC HOLDING KCHOL.IS N (V) 1,352.9 1,200.5-11.3% 2.1 2.3 10.4% -22% 35 TRAKYA CAM TRKCM.IS N (V) 123.4 111.2-9.8% 0.8 0.9 12.3% -22% 36 ARCELIK ARCLK.IS N (V) 150.0 123.4-17.7% 1.7 1.8 5.2% -23% 37 ADANA ADANA.IS N (V) 69.9 61.1-12.6% 3.1 3.5 10.9% -24% 38 AKBANK AKBNK.IS UW (V) 2,040.2 2,042.1 0.1% 3.9 4.9 24.5% -24% 39 VAKIFBANK VAKBN.IS OW (V) 732.5 675.6-7.8% 1.1 1.3 16.7% -24% 40 BAGFAS BAGFS.IS OW (V) 129.7 111.0-14.4% 62.5 69.0 10.4% -25% 41 TUPRAS TUPRS.IS OW (V) 898.8 734.1-18.3% 15.5 16.7 7.7% -26% 42 SABANCI HOLDING SAHOL.IS OW (V) 1,052.8 916.3-13.0% 2.5 2.9 16.3% -29% 43 CIMSA CIMSA.IS N (V) 90.9 70.6-22.3% 2.9 3.3 13.6% -36% 44 SINPAS REIC SNGYO.IS OW (V) 110.8 104.8-5.4% 1.4 1.8 32.6% -38% 45 ALBARAKA TURK ALBRK.IS N/R 131.5 125.7-4.4% 1.9 2.6 34.7% -39% 46 TOFAS TOASO.IS OW (V) 169.6 134.5-20.7% 1.2 1.5 18.7% -39% 47 VESTEL BEYAZ VESBE.IS N/R 53.0 32.5-38.7% 1.1 1.1 1.8% -41% 48 TAT KONSERVE TATKS.IS N (V) 13.9 6.1-55.8% 1.0 1.2 16.2% -72% 49 TEKFEN HOLDING TKFEN.IS OW (V) 312.1 111.9-64.1% 2.6 2.9 9.9% -74% 50 DOGAN HOLDING DOHOL.IS N (V) 376.5 110.6-70.6% 0.5 0.6 7.8% -78% 51 ECZACIBASI ILAC ECILC.IS N/R 99.4 43.1-56.6% 0.8 1.0 24.7% -81% 52 ALARKO HOLDING ALARK.IS N/R 80.0 16.9-78.9% 1.7 1.8 7.1% -86% 53 HURRIYET HURGZ.IS UW (V) 66.7 22.2-66.8% 0.5 0.6 30.4% -97% 54 GLOBAL YATIRIM GLYHO.IS N/R -5.0 0.0-100.0% 0.2 0.3 17.4% -117% 55 * UW (V): Underweight (V), OW (V): Overweight (V), N (V): Neutral (V), UW: Underweight, OW: Overweight, N: Neutral, N/R: Not Rated Source: Thomson Financial Datastream, HSBC estimates 7
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Disclosure appendix Analyst certification The following analyst(s), who is(are) primarily responsible for this report, certifies(y) that the opinion(s) on the subject security(ies) or issuer(s) and any other views or forecasts expressed herein accurately reflect their personal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report: Erol Hullu Important disclosures Stock ratings and basis for financial analysis HSBC believes that investors utilise various disciplines and investment horizons when making investment decisions, which depend largely on individual circumstances such as the investor's existing holdings, risk tolerance and other considerations. Given these differences, HSBC has two principal aims in its equity research: 1) to identify long-term investment opportunities based on particular themes or ideas that may affect the future earnings or cash flows of companies on a 12 month time horizon; and 2) from time to time to identify short-term investment opportunities that are derived from fundamental, quantitative, technical or event-driven techniques on a 0-3 month time horizon and which may differ from our long-term investment rating. HSBC has assigned ratings for its long-term investment opportunities as described below. This report addresses only the long-term investment opportunities of the companies referred to in the report. As and when HSBC publishes a short-term trading idea the stocks to which these relate are identified on the website at www.hsbcnet.com/research. Details of these short-term investment opportunities can be found under the Reports section of this website. HSBC believes an investor's decision to buy or sell a stock should depend on individual circumstances such as the investor's existing holdings and other considerations. Different securities firms use a variety of ratings terms as well as different rating systems to describe their recommendations. Investors should carefully read the definitions of the ratings used in each research report. In addition, because research reports contain more complete information concerning the analysts' views, investors should carefully read the entire research report and should not infer its contents from the rating. In any case, ratings should not be used or relied on in isolation as investment advice. Rating definitions for long-term investment opportunities Stock ratings HSBC assigns ratings to its stocks in this sector on the following basis: For each stock we set a required rate of return calculated from the risk free rate for that stock's domestic, or as appropriate, regional market and the relevant equity risk premium established by our strategy team. The price target for a stock represents the value the analyst expects the stock to reach over our performance horizon. The performance horizon is 12 months. For a stock to be classified as Overweight, the implied return must exceed the required return by at least 5 percentage points over the next 12 months (or 10 percentage points for a stock classified as Volatile*). For a stock to be classified as Underweight, the stock must be expected to underperform its required return by at least 5 percentage points over the next 12 months (or 10 percentage points for a stock classified as Volatile*). Stocks between these bands are classified as Neutral. Our ratings are re-calibrated against these bands at the time of any 'material change' (initiation of coverage, change of volatility status or change in price target). Notwithstanding this, and although ratings are subject to ongoing management review, expected returns will be permitted to move outside the bands as a result of normal share price fluctuations without necessarily triggering a rating change. *A stock will be classified as volatile if its historical volatility has exceeded 40%, if the stock has been listed for less than 12 months (unless it is in an industry or sector where volatility is low) or if the analyst expects significant volatility. However, 9
stocks which we do not consider volatile may in fact also behave in such a way. Historical volatility is defined as the past month's average of the daily 365-day moving average volatilities. In order to avoid misleadingly frequent changes in rating, however, volatility has to move 2.5 percentage points past the 40% benchmark in either direction for a stock's status to change. Prior to this, from 7 June 2005 HSBC applied a ratings structure which ranked the stocks according to their notional target price vs current market price and then categorised (approximately) the top 40% as Overweight, the next 40% as Neutral and the last 20% as Underweight. The performance horizon is 2 years. The notional target price was defined as the mid-point of the analysts' valuation for a stock. From 15 November 2004 to 7 June 2005, HSBC carried no ratings and concentrated on long-term thematic reports which identified themes and trends in industries, but did not make a conclusion as to the investment action that potential investors should take. Prior to 15 November 2004, HSBC's ratings system was based upon a two-stage recommendation structure: a combination of the analysts' view on the stock relative to its sector and the sector call relative to the market, together giving a view on the stock relative to the market. The sector call was the responsibility of the strategy team, set in co-operation with the analysts. For other companies, HSBC showed a recommendation relative to the market. The performance horizon was 6-12 months. The target price was the level the stock should have traded at if the market accepted the analysts' view of the stock. Rating distribution for long-term investment opportunities As of 02 April 2009, the distribution of all ratings published is as follows: Overweight (Buy) 39% (29% of these provided with Investment Banking Services) Neutral (Hold) 37% (29% of these provided with Investment Banking Services) Underweight (Sell) 24% (28% of these provided with Investment Banking Services) Analysts are paid in part by reference to the profitability of HSBC which includes investment banking revenues. For disclosures in respect of any company, please see the most recently published report on that company available at www.hsbcnet.com/research. * HSBC Legal Entities are listed in the Disclaimer below. Additional disclosures 1 This report is dated as at 0. 2 All market data included in this report are dated as at close 02 April 2009, unless otherwise indicated in the report. 3 HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its Research business. HSBC's analysts and its other staff who are involved in the preparation and dissemination of Research operate and have a management reporting line independent of HSBC's Investment Banking business. Chinese Wall procedures are in place between the Investment Banking and Research businesses to ensure that any confidential and/or price sensitive information is handled in an appropriate manner. 10
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