Owning 628,560 IRR bn capital, Tidewater Middle East Company released its 1Q performance report for the FY2015 ending March 19, 2016. According to this report, this company recognized 148 IRR EPS covering 22% of the whole year estimated profit. It is so while it had recognized 153 IRR EPS for the same period last year covering 31% of its whole year estimated profit. Although the realized profit in this period was less than the last year’s, the company has aimed to make 658 IRR total EPS that if realized, it will show a 34% increase. In the current year’s spring, Tidewater Middle East Company’s operating profit reached 70 IRR bn which was way more than its 1 IRR bn profit margin in spring 2014 and its financial costs equaled 7 IRR mn by 3 IRR mn fall due to its bank loans’ settlements. As a result, its profit margin increased from 2% to 27% compared to the same period last year.
Owning 140 IRR bn capital, Iran Radiator Company recognized 1,414 IRR EPS for the FY2014 ending March 20, 2015 which demonstrates a 136% increase in comparison with the last year. In this year, the company could sell products worth 1,709 IRR bn; its net sales ratio increased by 43%; however, its final costs grew up by 42% resulting in 321 IRR bn gross profit which shows a 49% raise. The sum of this company’s expenses was accompanied by a 3% fall and its operating profit reached 244 IRR bn; besides, its financial costs decreased by 67% which ended in the 136% return increase.
Kurdistan Cement Company only recognized 24 IRR EPS for the first half of the FY2015 ending September 22, 2015. Compared to the last year when it had recognized 133 IRR EPS covering 39% of its estimated 340 IRR EPS, this company could cover 12% of its estimated 193 IRR EPS with the same amount of capital. It is noteworthy to mention that Kurdistan Cement Company had forecasted 242 IRR EPS in budget report for the first quarter of the FY2015 which was negatively adjusted by 20.2% reaching 193 IRR. Furthermore, its real return decreased by 82% and even if this 193 IRR EPS is realized for the current fiscal year, this year’s real profit will decrease by 43%. Regarding the company’s production ratio, this company could produce 629,051 tons of cement in the first half of the current year covering 29.5% of the budget and demonstrating a 33.4% fall; 66% of the total produced cement was sold which covered 35.2% of the total year’s budget showing an 8.8% decrease in comparison with the last year. The total value of the sold products was 354,388 IRR mn at the first half of the FY2015 covering 33.8% of the total budget which showed a 13.5% fall compared to the same period last year.
With its 480 IRR bn capital, Bistoon Lump Sugar Company recognized 167 IRR loss per share in the first half of the FY2015 ending September 22, 2015. It is so while it had recognized 69 IRR EPS in the last year. In this period, this company’s net sales amount grew by 82% and reached 486 IRR bn; its final cost rose by 136% and ended in the 85.5 IRR bn gross loss. The company’s sum of expenses increased by 51 compared to the same period last year; furthermore, its 35 IRR bn operating return turned into its 68.8 IRR bn operating loss and its financial costs jumped up by 45%. As a result, the effect of these factors weakened the performance of this company in this period.
Holding 100 IRR bn capital, Saipa Azin Company recognized 629 IRR loss per share for the FY2014 ending March 20, 2015 while it had recognized 150 IRR loss per share in the last year. Although its net sales increased by 38%, its gross profit fell by 81% and reached 16.7 IRR bn due to its 46% final cost increase. On the other hand, its other operating costs raised by 17%; its sum of expenses grew by 17%, and its 36.3 IRR bn operating profit for the FY2013 turned into the 45.8 IRR bn operating loss for the FY2014.
Holding 50 IRR bn capital at the FY2013, Farabi Petrochemical Company could recognize 5,769 IRR EPS which turned into 824 IRR loss per share in the FY2014 with the same capital. In this year, Farabi’s net sales decreased by 23% and even the 8% reduction of the final costs did not do any good and ended in the recognition of 64.3 IRR bn gross loss of the company. Furthermore, the company’s costs increased by 28% and the operating income ratio fell by 69% and eventually, the company experienced a 41.7 IRR bn loss in the FY2014.
According to its unaudited report for the FY2014, Iran Tractor Manufacturing Company has recognized 1296 IRR EPS with 900 IRR bn capital showing an 86% increase. Its net sales amount was 8,406 IRR bn accompanied by a 14% increase; its final cost jumped up by 21% and its gross profit was 1,464 IRR bn being 8% less than the previous year. The company’s sum of expenses was followed by a 38% fall in this year while its operating profit grew by 54% and reached 795 IRR bn. Furthermore, its financial costs experienced a 1% increase. Technically speaking, this share is traded at the price of 5,160 IRR. It is so while it could reach from 4,600 IRR to 5,200 IRR in the last week of this month. It must be noted that this share has a very important resistance level at 5,300 IRR, a resistance level which has not been passed since the last February. If this share succeeds to pass this resistance level, it can once again reach the 6,000 IRR range.
With its 1,500 IRR bn capital, Iran Transfo Company recognized 721 IRR EPS in the fiscal year ending March 20, 2015 while its real return for the last year was only 355 IRR. Its net sales exceeded by 50% and reached 3,936 IRR bn and its final cost grew by 22% which altogether, resulted in the 1,035 IRR bn gross profit for the company which was 304% more than the last year. Furthermore, Iran Transfo’s sum of expenses was accompanied by a 52% fall and its operating profit reached 1,298 IRR bn experiencing a 61% raise; its financial costs were only 2% more than the previous year. In conclusion, as the statistics show, this company experienced a 103% raise in its profitability in the FY2014.
Hormozgan Cement Company could recognize 1,113 IRR EPS in the first half of the FY ending November 21, 2015. In its latest report, this company has negatively adjusted its EPS by 25% such that it decreased from 2,740 to 2,045. Holding 271 IRR bn capital, Hormozgan Cement Company could cover 54% of its adjusted return in the first half of the current year; it is so while it had covered 64% of its total budget in the same period the last year recognizing 2,834 IRR EPS. Of the reasons for this negative adjustment, one can refer to the non-recognition of the 6-month performance tax in the previous prediction, the non-consideration of any reserve for 2013 and 2014, and the increase of costs related to the personnel.
Behnoush Iran Company released its unaudited report for the FY2014 ending March 20, 2015. With its 164,608 IRR mn capital, this company only recognized 631 IRR EPS which shows a 52% reduction compared to the last year. Its net sales and final costs show 7% and 19% increase, respectively and its gross profit has been calculated to be 804 IRR Bn. Besides, its sum of expenses has grown up by 4%. It is so while its operating profit decreased by 31% and its financial costs increased by 9%. Under such conditions, Behnoush Iran Company negatively adjusted its return by 14.4%.
TSE at a Glance[caption id="attachment_3565" align="aligncenter" width="834"] TSE at a Glance[/caption] [caption id="attachment_3566" align="aligncenter" width="790"] Summary of trades[/caption]
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Trading Halts & Delays[caption id="attachment_3568" align="aligncenter" width="818"] Trading Halts & Delays[/caption]
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The market has still remained bullish. Its total index has moved up and sectors such as the banking and automotive are experiencing sales and purchase queues. Having been reopened today, however, the petrochemical sector seems to win the banking sector and lead the market in the following days. Based on our previous experiences in days before the negotiations deadlines in the past, we expect to witness more trades tomorrow. Many legal entities will definitely sell stocks to gain liquidity and some individuals will buy stocks merely trusting their guts in terms of the probable positive results of the negotiations. It is noteworthy to remember that investors should not be driven by their emotions and should make decisions rationally. In fact, there are advised not to get stuck in long queues since no extraordinary thing is going to happen in the short term in the performances of many of these companies after the agreement has been signed. It is crystal clear that if the stakeholders invest too much money on apparently worthy stocks (priced more than their real value), in case of no deal and after the burst of their price bubble, they will badly suffer, although the influence of the negotiations emotions cannot be denied due to the insufficient depth of our capital market. In conclusion, investors should behave rationally and take a long-term viewpoint in order to be safe in this unstable and moody market.
DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.
To contact the reporters: Negar Moshirfatemi at firstname.lastname@example.org
Holding 50,000 IRR bn capital, Isfahan Steel Company recognized only 489 IRR EPS for the FY2014 while this amount was 858 IRR EPS for the FY2013 with 36,000 IRR bn capital. Considering the new capital, however, the company’s EPS would be 617 IRR. As a result, the real earning in the FY2014 is 21% less than the last year. Although the company’s net profit reached 101,999 IRR bn by a 5% increase, its 24% increased final cost ended in the 21% fall of the gross profit. Besides, the sum of its expenses in the FY2014 decreased by 238% and the operating profit also faced a 31% fall; on the other hand, its financial costs climbed up by 25%. Totally speaking, Esfahan Steel Company started its long term descending trend since winter 2013 and despite some surges, it has failed to break this downward trend. Therefore, experts assume that this company is approaching its loss limit.
Gazlouleh Manufacturing Company’s ticker has been halted due to the long list of its creditors. The exact amount of this company’s debt has not been clearly defined and it will be announced after its loss and profit amounts’ announcement. This company has experienced its golden age during 2001- 2005 when due to good diplomatic relations with foreign countries, it requested for a loan from the International Monetary Fund and was about to start projects on the improvement of water and waste water pipes. However, its wishes and dreams were blown away after the 2005 election. Furthermore, factors such as non-operating returns, receiving loans, reliance on tender sales, governmental organizations’ failure in debt payoff, previous weak management, etc., made these conditions worse. The only solution to save this company has been stated to be bankruptcy announcement. As a result, this company has submitted its bankruptcy petition to Shahid Beheshti Judicial Complex of Tehran and its ticker will not reopen until the court verdict has been passed.