Kordsa Financial Analysis

KORDSA GENERAL INFORMATION

 

Kordsa Technical Textile was established on 17.08 1973. Manufacture of fabrics and industrial fabrics, which are in the structure of vehicle tire wheels and form the main skeleton, manufacture of industrial fabrics in the structure of rubber and plastic materials such as transmission belts, V-belts, rubber hoses, manufacture of heavy denier fiber and connection fabrics, all kinds of yarn into tire cord fabric, performs the conversion and marketing of cloths and other rubber reinforcement materials used in mechanical rubber goods. In addition, Kordsa manufactures nylon 6.6 heavy yarn for use in car tires and mechanical rubber products.

 

The company has a revenue performance based on foreign currency. It is a global company in the Industrial Textile sector. Despite being evaluated as a growth company, it has a dividend yield of over 2%. The Industrial Textile sector is a sector with future potential. Thanks to Turkey's geopolitical position, Kordsa provides great advantages.

 

Kordsa is the world's leading producer of industrial nylon and polyester yarn, tire cord fabric and single cord. The reinforcement unit of Kordsa İnşaat, established in the second quarter of 2014, conducts market research and develops technology for the production of construction reinforcement products. Kordsa offers both structural, semi-structural and prepregs for different applications at desired levels of hardening and tackiness.

 

Today, the company strengthens one out of three automobile tires and two out of three aircraft tires with tire reinforcement technologies in the world, and this slogan of the company is an indication of its direct dependence on market growth.

 

In the composite sector, it develops technologies that enable its vehicles to be lighter, to perform with less fuel and lower carbon emissions. provides more durable and more practical reinforcement solutions for infrastructure and superstructure projects in the construction industry.

 

KORDSA PARTNERS AND HISTORY

 

Seventy percent of the company's capital share is owned by Hacı Ömer Sabancı Holding a.ş. belongs to The publicly traded ratio is about 29 percent. Briefly, the history is as follows. 1973 İzmit rubber fabric factory, first export in 1976, line investments in 1982 and 1984, opened Dusa, Sabancı - Dupont Nylon Yarn factory in 1987, South America investment in 1998, North America investment in 2000, Asia in 2006. It opened an R&D center in 2017, and in 2018, Fabric Development and Textile Products Inc. acquired companies. It acquired Advanced Honeycomb Technologies in 2018 and Axiom Material in 2019. The company has 5068 employees.

 

Members of the Board of Directors of the company are Ahmet Cevdet Alemdar, Ali Çalışkan, Gökhan Eyigün, Nusret Orhun Köstem, Güngör Kaymak, Şerife Ebru Doğruol Aygil.

 

AFFILIATES

 

 

Advanced Honeycomb Technologies Corporation	200.000	100
Axiom Materials Acquisition LLC	74.166.742	100
Fabric Development, Inc.	1.210.000	100
Kordsa Brasil S.A.	203.001.726	97,31
Kordsa Inc.	274.091.000	100
Microtex Composites S.r.l.	120.000	60
Nile Kordsa Company SAE	24.378.000	51
PT Indo Kordsa Polyester	14.745.575	99,97
PT Indo Kordsa Tbk	80.303.171	61,58
Textile Products, Inc.	150.000	100
Thai Indo Kordsa CO. LTD.	365.883.000	64,19

PARTNERS

 

 

OTHER	56.201.461,99	28,89
HACI ÖMER SABANCI HOLDİNG ANONİM ŞİRKETİ	138.327.614,01	71,11
TOTAL	194.529.076	100

 

KORDSA RATIOS

 

-The company generated more sales with its assets. For every 1 TL of assets, 0.77 TL was sold. (In 2020, this was 0.66 TL)

-The stock holding period decreased from 132.1 days to 113.6 days.

- While receivables were collected in 81 days, debts were paid in an average of 53 days. Average collection period extended by 6.1 days.

Resources with a maturity of less than 1 year can meet short-term liabilities. The current ratio is above 1.

-Operating profit margin is 17%, Net profit margin is 10%. Last year operating margin was 8%, Net profit margin was 3%. Both the operating profit margin and the increase in the net profit margin are positive.

-The return on assets is at the level of 13% and there is a positive increase. It was 5.3 percent last year.

-The liquidity (acid-test) ratio is 0.58. Non-stock resources may not be sufficient to meet short-term liabilities.

-Cash and the like make up 1.4 percent of assets. Since this ratio was 5.9 percent last year, there was a decrease in cash weight compared to assets.

-With the increase in sales, there was a 112% increase in EBITDA and a 469% decrease in net profit.

 

DIPNOTES

-The company seems to have achieved its targets within the framework that it stated last year. In this direction, its sales growth in dollar terms is 37% and EBITDA growth is 67%, which is positive.

-Using the advantage of being a global player against the crises in the automotive industry and the problems in the supply chains, Kordsa increased its operational Profitability by nearly two times and its net profit by 5 times compared to 2020. Reached 2 Billion TL.