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For traders looking for their next investment, it can often seem a somewhat difficult task, with a whole host of differently sized assets available across multiple market types.
Sometimes, it is worth considering alternative trading options, particularly with stocks in more far-reaching markets, that may not be as well-known, but still provide excellent investment opportunities.
One such possibility comes from Turkey, in the form of the Aselsan stock (ASELS). Below, we will delve into the specifics of the company, including what it is, where it is from, and why it could be an exciting prospect for traders going forward.
What is Aselsan?
Aselsan was first established in 1975 as a dedicated company of the Turkish Armed Forces Foundation (TAFF), designed to meet the communication needs of the by national means.
It is Turkey’s largest defence electronics company, and one of the top 100 defence companies in the world in terms of revenue, with a product portfolio comprising specialist communication and information technologies across a number of key sectors.
This includes software for radar and electronic warfare, electro-optics, avionics, unmanned systems, land, naval and weapon systems, air defence and missile systems, command and control systems, transportation, security, traffic, automation and medical systems.
Aselsan currently employs more than 9,000 people, with a total of 74.20% of its shares being owned by TAFF, and the remaining 25.8% being publicly traded on İstanbul Borsa, Turkey’s national stock exchange. The company also allocates around 7% of its annual income for self-financed research and development activities.
The Turkish defence leader has expanded internationally, with associated entities in Azerbaijan, Kazakhstan, Saudi Arabia, and United Arab Emirates, as well as a branch situated in South Africa.
Aselsan Stock
Before investing in Aselsan stock, it is important to crunch the numbers by taking a much closer look at some of the fundamental company financials and figures, measured in Turkish lira (TL)..
In its most recent 2021 fiscal year, the company generated revenues of TL 16.1 billion, with total net income amounting to TL 4.45 billion.
The Turkish defence giant posted a turnover of TL 10.3 billion in the first nine months of 2021, representing a year-over-year same period increase of 22%.
Meanwhile, the company also published figures which showed a record profit of TL 3.1 billion in the first three quarters of last year, up 52% on the like-for-like time period in 2020.
When it comes to investing in Aselsan shares, it is considered to be a less expensive investment than other comparable stocks, as it offers good overall value and displays a positive growth ratio that is above the common average.
Major Projects in 2022
The year of 2022 is set to be a big one for the defence technology innovators, with a number of exciting commissions and projects that are in the pipeline and set to get underway.
Aselsan is preparing to export and sell its specially developed torpedo countermeasure and electronic map-based navigation systems, which is designed for use with surface and underwater platforms.
Factory acceptance tests have already been completed for the Zargana Torpedo Countermeasure System for submarines, which was developed In Turkey by Aselsan under the scope of a modernisation project commissioned by the Pakistan Navy.
Meanwhile, further factory acceptance tests were also carried out for a contract signed with the Indonesian Navy, with Aselsan’s torpedo countermeasure solutions for submarines being introduced to the world for the first time with the Zoka Acoustic Decoy/Scramblers commission.
Zargana, which includes the Launcher System, Decision Support System and Zoka Acoustic Deception/Scrambler subsystems, meanwhile, will be exported abroad for the first time this year.
Future Prospects
Aselsan has invested heavily in many internal areas of the business, with particular attention being given over to research and development (R&D) in terms of technological advancement.
The defence firm has a strategic plan in place for 2021-2025, which has been self-described as a ‘road map’ to take the company beyond an era in which it reached the top 50 of the Defence News Top 100 rankings, rated at number 48.
There is a focus on value creation for Aselsan’s stakeholders in the global markets, which fits in line with a wider goal of reducing Turkey’s dependence on external markets moving into the future.
Strengthening customer relationships and client trust is at the heart of the future road map, along with an emphasis on maintaining export performance when fulfilling orders to a grand total of 70 countries worldwide.
Aselsan leads a large ecosystem of subcontractors and other market actors, including more than 4,000 suppliers across the globe. The stated target over the next five years is to grow the supplier base, while ensuring that efficiency is also improved.
