7 years ago, Hugo Chavez and Ahmadinejad, former presidents of Venezuela and Iran, agreed to build a petrochemical complex with the annual methanol production capacity of 1,650 thousand tons, within 3 years in Asalooyeh. Based on this agreement, “Veniran” a mutual company founded for running the Metanol Apadana petrochemical project. However, the foreign partner failed to meet its commitments on time and finally the International Petrochemical Co. (subsidiary of Persian Gulf Holding) is investing in this project. During the past year the project has made a remarkable progress. Regarding the latest reports, the installation of 450 and 250 tons cranes are finished and the first tower is being installed. The tower is made domestically with 170 tons weight and 50 meters height. The cost of this project is estimated 500 Million USD.
Based on a new contract between Iran Khodro Co. and Peugeot, 3 new products including Peugeot 301,208 and 2008 are determined to be produced in Iran. Moreover, a mutual company will be founded with the equal investment of both Iran khodro & Peugeot companies. The board member of this company will be a group of Iranian and French experts. Technology transfer and producing 40% of products domestically are the main contents of this contract. Exporting the 30 percent of mutual products is predicted for this company.
Mobin Petrochemical Co. is planning to offer 5 to 10 percent of its stake in TSE probably on next Wednesday. The company with the capital of 1.425 thousand billion IRR could make 397 IRR return per share in 9 months period of FY2014. This amount increased by 9 percent compared with same period last year. Mobin has forecasted 539 IRR EPS for FY2014 which could be covered 74 % in 9 months period. Although Mobin’s sales value increased by 104 percent in 9 months period compared with last year, the gross profit moved up only by 28 percent. However, the profit margin reached to 28 percent which was 46 in same period last year. Persian Gulf Petrochemical Industries Co. currently is the one hundred percent owner of Mobin. Based on Mobin’s 2Q2014 report, the company’s foreign currency debt to Persian Gulf Petrochemical Industries Co. is 149 Million USD.
Yesterday the value and volume of trades recorded incredible numbers. Saderat Bank could record the highest retail volume of trades since so far by over 1 billion and 130 million shares. The possibility of lifting swift sanctions besides the governmental support for strengthening banks such as approving their raising capital and selling the shares of banks’ subsidiaries would make significant changes in this sector. It could be said that the banking sector is the leader now. The automotive sector has also attracted a huge amount of new liquidity during the past few days. It seems the risk of sanctions and political tensions are getting eliminated from the market and the equities are flowing to the market. Today the new price levels attracted more sellers. The value and volume of today’s trades was considerably less than yesterday while it is still more than last year.
While the inflation rate has slipped to 15 %, many experts believe that the deposit interest rate cut must be done to get the liquidity out of the banking system. By Lausanne framework deal and the possibility of nuclear agreement the probability of cut in the banking interest rate has increased. However, the banking account situations will also matter for this decision. Currently most of the banks have high bad debts accounts that have declined their lending power.
Following the announced framework nuclear agreement, the chief central bank of Iran, Seyf, encouraged the banks for being more active and being prepared for the bold international attendances in near future. He also warned that the value of non-current banks’ receivables has been increased significantly and raising capital must be in this year banks’ plans for better capital adequacy ratio. Before the sanctions, Saderat and Mellat banks had the most international transactions and high percentage of their income was from the exchange transactions. Now they are more attracted in the market as the possibility of opening swift gets stronger.
After the nuclear framework agreement announcement the banking and automotive sectors recorded for the highest demand in today’s market. The Saderat bank share, which has dropped to 70 IRR during the last year, jumped today by 4% to 95 IRR and recorded more than 1 bn buy orders on that price. It’s noteworthy to mention that the TSE has price fluctuation limitation between -4 to +4 percent on each share. Today most of the shares witnessed huge buy orders on their highest possible price (+4%) with no sales orders in front (Buy Queue).
During the last few days there was a redoubled optimism in the market over the nuclear talks. This time the market reacts differently and instead of waiting for the releasing result or deadline extension, most of the investors recognized their gains yesterday and in today’s early trades. They preferred to stay out through the day on any headline coming out of Lausanne. However, as the ministerial meeting in Lausanne started at 7:00 am local time the buying pressure raised the TSE index by more than 0.5 percent. With regards to the absence of big legal market players due to New Year holidays, the retail emotions are out of control. Many investors believe a deal is in the making. Even without some sort of agreement a deadline extension is expected. Any statement coming from Lausanne will determine the fate of market.
The possibility of more positive adjustments for Iran Combine Manufacturing Co’ EPS – Daily Market News
Iran Combine Manufacturing Co increases its forecasted EPS for FY2015 by 53%. Predicting 50% jump in the company’s productions compared with last year is considered as the main reason for this improvement. This prediction is due to the developments of production line units, the government supports and the rise of human resources. The minimum 10 percent increase in the rate of sale is also forecasted in the company’s FY2015 budget. The company also predicted the export of 100 produced machine to Tajikistan over the next year. Moreover, by the order of the Ministry of Agriculture Jihad, the company is planning for importing the Combine and heavy tractors with the official exchange rate in near future.
The crude steel production of 8 main steel producers in Iran including Mobarakeh, Khouzestan, Esfahan, Hormozgan, Saba, Khorasan, Alloy and National Iranian Steel Companies reached over 15 million tones in the first 11 months period of year ended 20 Mar 2015, Iranian Mines and Mining Development and Renovation Organization reported. The number shows 8% increase compared with same period the year before.