- In addition to the problems arisen for Cement companies caused by the recession and difficulties in sales, another debate has also raised as pollution. All cement production lines in Tehran Cement Company are closed and inactive for development and installation of conditioning and air filtering systems until the further notices. The pervasiveness of this situation will soon face us with discontinuation of production in other companies due to air pollution. Owning 5 production lines with the capacity of 12 thousand and 100 tons per day, the Tehran Cement Co., as the country’s largest cement manufacturers, are located in southeast of Tehran province.
- Rayan Siapa Leasing Co. released its first unaudited next year budget. The company forecasted 394 IRR EPS for year ending 20 Mar 2016. This amount was increased by 40 percent with compare to this year budget. By considering more sales, the income from leasing operation was moved up by 75 percent. The cost of financing for leasing operations has been also improved by 63%. Hence, the gross profit increased by 94%. On the other hand, other net operation incomes were forecasted 84 % less than this year as the result of realizing all the profits from buying cars in advanced from Siapa Co. this year. The company also increased its forecasted EPS for year ending 20 Mar 2015 by 2.1%. The company covered this year forecasted sale by 9 Feb 2015.
- Golgohar Mining & Industrial Co. was halted yesterday to announce its first forecasted EPS for next year. With regard to 25 % royalties which is proposed by the government for mining companies in next year governmental budget, negative adjustment is expected. The total return will decline due to this extra cost. The Golgahr share has had a downward trend during the past three months due to ambiguity over the rate of royalty and has declined by 33% to 3800 IRR level. Negative adjustment in next year budget is also expected for the Chadormalu Mining & Industrial Co.
- The parliament voted for eliminating some parts of Clause 2 in next year budget’s bill, yesterday. It was coming in these parts that: National Oil Refining Co. , Iranian Oil Product Distribution Co., the domestic oil refinery and petrochemical companies are required to deposit the fee rate of their received consuming feeds and condensates to the national treasury at the end of each month. Executing this clause could have a destructive effect on the companies with foreign sales. Moreover, paying monthly will cause liquidity problems for mentioned companies.
- Pars Khodro Co. increased its forecasted loss for year ending 20 March 2015. With 2,000,000 IRR mn capital, the company had announced 52 IRR EPS while after raising capital to 6,774,000 IRR bn this number was changed to 318 IRR loss and in its latest report the loss increase to 427 IRR. In the last 3Q1393 report the company made 376 IRR loss per share which was 295 IRR in same period last year. The drop in volume of productions and sales are the main reason for this realized loss.
TSE at a glance
IFB* at glance
Trading Halts & Delays
The eleventh month of current Persian year is ending and amid the bewilderment of nuclear negotiations the market is waiting for the companies’ predicted financial year. It is crystal clear that following the decrease in global commodity prices, especially oil, besides the economic recession in the world, there will be a drop in the next year profit of the companies compared with this year. However, the levels of this phenomenon still need to be clarified. Some believe that the worst performance relates to the 3rd Q of this year and there would not happen worse than that. Yet, some are not optimistic. Mobarakeh Steel Co. forecasted report has been the most important one so far being optimistic. Medicine and Leasing groups are expected to release satisfying financial reports. Contracting companies are also likely to announce appropriate statistics. Some are waiting for the reports and the possible market loss to reenter to the market. At the same time, the budget is under investigation and in the days ahead it will be discussed in details. Regarding the banking issues of the three defective banks, particular concerns have raised which are getting stronger by the lack of clarity over the problems of other banks. Given all the mentioned circumstances, the market is not expected to experience a suitable growth in the coming month.
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.
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