According to the Tile and Ceramics Production Association, consumption ratio has dropped by 30% due to the recession dominating the construction sector in the country resulting in the increase of stored goods volume; export has been proposed as the only solution to reduce this amount. After the removal of sanctions, thus, the export volume and its conditions will improve and the received money can be transferred to the country with more ease and speed which can itself circulate new blood to this sector’s body resulting in a probable new life.
Sina Chemical Industries Company released its 1Qreport for the FY2015 ending March 19, 2016. Holding 30,713 IRR mn capital, this company has forecasted 527 IRR EPS while it had realized 198 IRR EPS the same period last year; besides, it could turn its 98 IRR EPS for the last year’s first semester into a 155 IRR EPS, covering 29% of the total predicted EPS. According to this report, the company sold 82.8 IRR bn which was 21% less than that of the previous period; its gross profit was accompanied by a 2% decline standing at 16.6 IRR bn; and its 20% profit margin dropped by 4%. Nevertheless, its operating profit rose by 35% reaching about 7 IRR bn which ended in the covering of 28% of its total predicted budget. Furthermore, its financial costs went down to stand at 372 IRR mn while it had predicted 7,500 IRR mn for its financial costs.
Tehran Oil Refining Company released its unaudited 1Qreport for the FY2015 ending March 29, 2016. Negatively adjusting its EPS from 288 IRR to 280 IRR, the company announced the realized return to be 55 IRR covering 20%. With its 8,000 IRR bn capital, it sold products worth 24,701 IRR bn making 673 IRR bn gross profit which covers only 2% of its predicted gross return. Despite its realized 315 IRR bn operating profit in this period, the company had forecasted 2,085 IRR bn operating profit for this year.
Shirvan, Qochan and Bojnourd Sugar Company released its 1Qreport for the FY2015 ending March 19, 2016. Holding 100,692 IRR mn capital, this company recognized 159 IRR loss per share, compared to the 40 IRR loss per share of the same period last year. The company made 50,902 IRR mn net profit which was 33% less than that of the previous year; as a result, its 83 IRR mn gross profit was also accompanied by a significant 98% drop. The administration, public and sales costs grew by 23%; the sum of expenses rose by 33%; its operating loss went up by 424%; and the company’s financial costs also rocketed by 37%. Altogether, the company made 16,002 IRR mn net loss being 299% more than that of the same period last year.
TSE at a Glance
Summary of Trades
IFB at a Glance
Today, the market was again bearish, however not as much as the day before. But as it was said before, the market will continue its rather backward behavior until the release of some impressive news. One of the probable motivations which has kept the domestic investors hopeful, is the news on foreign delegations, visiting different industries of the country, which has its own positive and negative consequences. Iran is a country of great importance for foreign investors due to being far from regional conflicts, young population of workforce, and the like, which all contribute to the entrance of foreign investors’ capitals. Besides, in the hope of sanctions relief, large amounts of blocked currencies are also about to be transferred to the country. Here is where the problem may arise. Taking the country’s negative experience over the period of 2005 to 2013 into account, we are now aware of the risks and damages of having no plan and improper management of financial resources entering the country which can lead to the increase of wandering liquidity, inflation and employment rate increase. One of our silver linings to avoid such occurrences, however, is to welcome the enthusiasm found among foreign investors with open arms equipped with pre-prepared plans. In fact, experts are warning the government and correspondent authorities not to let such an opportunity be lost .Thus, in this regard, the spotlight has to be zoomed in on the private sector. In order for such an opportunity to be realized, challenges like the laws and regulations, pertaining to subjects such as capital return, warranties, and company registrations must be removed and the path must be prepared since we are not much experienced in the field of attracting foreign investors. Another prerequisite to materialize such a hope is to establish professional investment consulting firms in the country. Providing technical, economic, risk estimation and evaluation information, such firms can enable foreign investors to choose among the available potential opportunities. The point to be underlined is the fact that foreign investments must be conducted with a joint venture attitude in order to help transfer technology and knowledge into the country. In conclusion, people are nowadays aware of the great opportunity ahead of them; however, their emotions and excitements must be controlled and managed by the collaboration of the government alongside with private sector. Besides, the corresponding authorities are expected to identify the investment opportunities at hand in the new era after the lift of sanctions for small to medium firms to benefit in parallel with large private and public organizations.
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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