Hi Web Went Public
* In today’s session, 10% of Dade Gostar-e Asr-e Novin (AKA as Hi Web) Company’s shares, i.e. were offered for the first time to investors via the book building method with each share price ranging from IRR 2,715 to IRR 2,850; each investor, individual and institutional, is allowed to purchase 5000 shares. With IRR 4,000 bn in capital, the company has estimated to make IRR 4,060 bn revenue and IRR 1,540 bn net profit, mostly due to the 34% rise in revenue and 14% decline in COGS; it is so while it has made IRR 7,000 bn revenue and IRR 650 bn net profit with IRR 2,000 bn in capital in the previous year. Over the first quarter, the company has realized a 72% growth in its revenue with no increase in COGS over the first quarter compared to the same period last year.
* Following the enactment by the Securities and Exchange Organization of Iran’s Board of Directors dated 9 November 2016, active exchange markets in Iran’s Capital Market, i.e. Tehran Stock Exchange, Iran Fara Bourse, Iran Energy Exchange and Iran Mercantile Exchange, plus all banks and financial and credit institutes licensed by the Central Bank of Iran were banned from participating in credit rating agencies’ shareholding structure. In its latest approval, however, dated 30 August 2017, the said banks and financial and credit institutes are allowed to participate only indirectly and up to 10%.
In the Market
After going through balanced trades in the other day, Mobin One Kish went under sales pressure right from the go, dropping more than 4%. It was so while the other ticker in IT & Communication, i.e. Atie Data Processing grew by 3.6%.
Despite the rather negative sentiment dominating the Metals space, a few like Iran Aluminum, Navard Aluminum, Zangan Zinc Industries and Esfahan Steel were the gainers. Esfahan Steel has managed to decline its loss by 76% over the first quarter of the current year, turning IRR 550 bn loss to IRR 1,022 bn gross profit; besides, its COGS has fallen by 20%, reaching its gross profit up to 14% in comparison with the same period last year. The CEO of Esfahan’s Mobarake Steel (-0.01%) has also announced their plan to increase their capacity to produce 25 mn ton of raw steel as well as the increase of the company production from 5.4 mn ton to 7.2 mn ton.
Excluding a few tickers trading in the -0% zone, the whole Automotive space, led by Saipa, witnessed positive trades; an agreement has been signed between Iran Khodro Diesel (closing with a buy queue), representing Iran Khodro and Mercedes Benz in Germany. Indamin Shock Absorber (+3.8%) managed to face a buy queue during the session, just like the previous session.
In its latest report, OPEC has announced the oil production decline by 79,000 barrels, which contributes to the recent hike in oil prices. The approval of a positive adjustment in Esfahan Oil Refining dragged other refineries in the Oil Products group into the green zone. Tabriz Oil Refining faced a buy queue; it has covered 26% of its budget in the first 3 month of the current year, making IRR 178; it was so while it had realized IRR 8 loss per share. In addition to the 57% growth in sales, the rise in its gross profit from 4% to 12% plays the most part in the company profitability.
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