Seven percent stake of Mobin Petrochemical Co. was offered today by Persian Gulf petrochemical Holding Co. and each share priced at 2900 IRR. Mobin is a utility company the main products of which, including steam, Electricity, Nitrogen and Industrial waters, are sold to Pars, Jam and Ariya Sasool petrochemical companies. It’s noteworthy to mention the 1,107 IRR bn Mobin’s debt to Boushehr Sate Gas Company. The company is providing gas for Zagros & Pardis petrochemical companies which have not settled their debts with Mobin. However, the company denies any effect of this debt on its financial statements. The main risk which is threatening the company is the gas rate. Based on the latest financial reports, the level price of 300 IRR was considered reasonable for Mobin’s share. In only 63 seconds, 570 million shares were purchased and Mobin market cap was recorded more than 4.1 thousand IRR bn. The other 287 million shares were purchased for Mobin and other Persian Gulf subsidiaries.
Fan Ava Co, an ICT group, signed a two years contract for providing services and supporting the petrol intelligent system for National Iranian Oil Refining and distribution Co. (NIORDC). The operating has started from Feb 2015 and the contract value is estimated 304,654,799,680 IRR. Although the company’s return for FY2014 (ending Dec 2014) dropped by 80% to 137 IRR, the company forecasted that the return for each share will increase by 34,37 and 3 IRR respectively for FY2015, FY2016 and FY2017 due to this contract.
TSE at Glance
IFB at Glance
The current market situation seems to be sustained until the general meeting seasons in June. Holding fundamentally strong shares with DPS and low P/E is still recommended.
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