- Mobarakeh Steel Co. released its next year budget. The company’s EPS for next year has been declined by 11 percent to 450 IRR compared with current year budget. There are not much differences between this year and next year budgets and the margin return remained unchanged. It must be noted that the company has considered 35,000 IRR for the US exchange rate which is a reasonable rate for a company with more export than raw materials import. 1 to 3 percent rise in rate of sale was taken optimistically. In general, we could say that the company released a very conservative forecasted report for the next year. Despite of any changes in rate of products, the company has nothing more to offer. By considering today’s share price (1,970 IRR) and next year forecasted EPS, the share is currently trading with 3.6 p/e which is not a good sign. The market which gives such low p/e ratios to its big cap companies has no liquidity and confidence.
- The Parsian Electronic Commerce Co. released its 3Q1393 (year ending 20 Mar 2015) and adjusted its forecasted EPS for this year from 652 to 509 IRR. In DEC 2014, the company raised its capital from 910,852 to 1,821,704 IRR mn by 100%. By considering the new capital, the company made 341 in 9 months period and could cover 67% of its forecasted EPS. The real return of the company in 9 months moved up 6 % compared with same period last year. The sale and income services increased by 159% compared to same period last year. While, due to increased costs the gross profit moved up only by 20% and the margin profit dropped to 23% from 50% in last year same period. The 22% negative adjustment for the forecasted EPS is the result of unpaid fees from one the companies’ partners.
- It could be said that supplying raw materials for productive entities is the main concern in Zinc and Lead industry in Iran. Currently, the Angouran Mine can only support 30 percent of factories’ capacities. Despite the abilities of private section in this industry the Commerce, Mine and Industry Ministry does not effectively support the operation and exploitation from other existing mines. Meanwhile, Extracting zinc from wastes and importing raw materials from neighbors are the options for producers in this industry. Although exporting raw material is prohibited by the Ministry, implying custom duties and lack of preferential credit for importing minerals and concentrates are the other obstacles for developing this industry.
- Hafez Tile & Ceramic Co recorded a good performance during the year ending 20 Mar 2015. With the capital of 180,000 IRR, the forecasted return for each share has been decline from 175 to 163 IRR in the last company’s 3Q report. If the company covers its forecasted EPS, the real return will increase by 462% compared with last year. The operation profit in 9 months shows 47 % rise compared to same period last year. The member of board has decided to split 163 IRR as cash dividend in its general meeting.
TSE at a glance
IFB* at glance
Trading Halts & Delays
As it was mentioned before, the market is waiting for the result of nuclear negotiations and also the next year’s budget of great and leader companies. Following an increase in oil prices during the last week, the trading volumes have slightly improved and the bearish trends have slowed down. But it seems that the true market participants are not much reluctant for new purchases. Additionally, the fundamentally applicable shares are not traded satisfactorily. It should be noted that those shares which are being traded with high P/E are potentially risky. For future decisions, we should wait for Automotive and Construction Group companies’ next year reports.
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 email@example.com