As it was predictable in this industry, estimates for the first quarter for the financial institutions do not appear to be appealing due to unprecedented increase in doubtful receivables in financial statements of the related banks. The leader among the shares in this field is Saderat Bank which has realized 12 percent of its profit forecast in the first quarter of the Iranian fiscal year ending March 20th. This is largely because of SWIFT embargoes on this bank and the immense amount of non-performing loans that are not paid back as a result of poor economic conditions and the high rate of interest which is a record of its kind in the world as the minimum is below 10 percent compared to that of above 20 percent in Iran. Nevertheless, we should say that the future for this sector is promising in the aftermath of the nuclear deal.
The stock market ended the previous trading week with downward trend despite the positive outcome of nuclear talks and its end result that might culminate in a much better economic conditions. However, what the participants of the market witnessed was extremely opposite to their expectations due to some sound reasons explained in the daily market news.
Neishabour Sugar Company released its financial statements for its 9-month period ending September 22, 2015. Holding 200 IRR bn capital, this company recognized 115 IRR loss per share; last year, it had recognized 189 IRR EPS with 81 IRR bn. Furthermore, although this company had predicted to suffer 36 IRR loss per share until the end of FY2015, it increased that amount to 148 IRR for the whole current year.
Having deeply delighted by and overwhelmed with the final agreement with P5+1and Iran, the participants in the market were utterly moved and shocked by the stocks laggard in the market while it seemed that the circumstances were provided for an upward rally in TSE. What has always been interesting regarding the market is the unpredictability feature that is the indispensable component of all equity exchanges and TSE is by no means an exception. Bearing this in mind, there are some causes that end in effects we saw during past trading days including today:
Today’s market news section deals with sectors owning the highest potential to be positively affected by the negotiation results as below.
Owning 208,833 IRR mn capital, Karoon Cement Company recognized 1,033 IRR EPS for the FY2014 ending March 19, 2015. It is so while this company had recognized 1,423 IRR EPS last year. This company could sell products worth 945 IRR bn which was 14% more than the last year; its products’ final cost grew by 35% and its gross profit dropped by 11%. Karoon Cement Company’s sum of expenses reached 72 IRR bn, showing a 239% raise. In 2014, this company faced a 26% fall in its operating profit and its financial costs decreased by 81% compared to the last year. In fact, the significant increase in its net operating costs led to this negative adjustment.
Holding 1,903 IRR bn capital, Iran Alloy Steel Company recognized 378 IRR EPS for the FY2014 ending March 19, 2015. It was so while it had realized 482 IRR EPS last year. In this year, this company could produce 385,418 ton products, being 6.5% more than the last year. Its main product was an alloy which involved more than 62% of this company’s production; then, its other important products were related to the construction, engineering, and industry sectors. Furthermore, this company could sell about 92% of its products and its sales amount rose by 20%. The average sales price of each ton of this company’s products for the FY2014 was 22,004,451, showing 4.2% increase. Besides, the final cost rose by 32% and the company’s gross profit reached 866.9 IRR bn which was 12% less than the last year’s and the administration, public and sales costs also went up by 101%. Although its other operating income faced a 3,010% growth, the sum of expenses also increased by 126%, its financial costs grew by 39%, and its operating profit also experienced a 28% decrease in comparison with the last year’s. Altogether, these factors ended in the 22% profit reduction of the company.
According to the reports released by the SEO on the top 50 listed companies for the 1Q2015, Sina Bank has been introduced as one of the influential companies on the market. Top companies or those with excellent conditions are often identified based on criteria such as the stock’s liquidity, influence on the market, and financial ratios’ superiority. As a result, top listed companies are those which have a higher liquidity level and are selected based on the triple criteria of shares’ trading number, shares’ trading frequency, and the company’s criterion of influencing the market which includes the average of the issued shares and the average of the shares’ current value during the investigation period. It is worth mentioning that it is not the first time that this bank’s was nominated for this level. This can be regarded as this bank’s ability to compete with older and more known banks of the country.
Possessing 195 IRR bn capital, Esfahan Sugar Company recognized 49 IRR EPS for the FY2014 while it had recognized 718 IRR EPS with the same amount of capital last year. In this year, this company produced the total of 164,782 tons of products being about 6% more than the last year’s; its sales amount also increased by 34%. Based on the nearly 40% increase of the sales amount, however, this company’s final cost jumped by 55%; its gross profit decreased by 46%; its administration, public and sales costs rose by 25%; and its other operating costs went up by 159%. Besides, its sum of costs became 45% more than the last year’s; its operating profit fell by 64%; and its financial costs grew by 99% which contributed to this reduction.
Possessing 2,400 IRR bn capital, Rayan Saipa Leasing Company recognized 317 IRR EPS at the end of the FY2014. It is so while this company had realized 316 IRR EPS with 1,200 IRR capital which could be 158 IRR considering the current capital. Rayan Saipa’s income from its leasing companies reached 1,954 IRR bn, showing a 72% rise and its leasing operations’ financing costs grew by 60% which could double the gross profit amount to 668.9 IRR bn. Besides, this company’s operating profit also rose by 786% standing at 436 IRR bn and its investment income jumped up by 44%. These factors contributed to the realization of 101% more profit for this company.