EPS projections ahead of Tehran Stock Exchange!
2017/18 earnings projects are now out for a number of Tehran Stock Exchange listed companies. The forecasts in general herald a better performance for the most, however the figures are considered as pessimistic. The highest growths are in favor of commodity related industries, beholden of global prices hikes, yet the operating folks decided to anticipate a bit for a volatile market worldwide.
Over the past 5 years there were a huge gap amid forecasts and what have been done through the year end. Factors shall be held responsible for all discrepancies are, including but not limited to, FX volatilities, unsustainable inflation, global prices rise and falls and abnormal liquidity.
According to the financials, Metals and Cement sectors are the ones with highest EPS estimates adjustments contrary to the current FY. For the cement, the recent declines in exports hand in hand with a construction deprecation were enough to drain the companies’ profitability. Now with a cement price of IRR 100 to 110 per tones their future earnings would fall under normal after all. Needless to say, if nothing significant happens in the demand side for upcoming fiscal year, realizing better than current figures are bit far-fetched.
For metals, on the other side, despite all the warily figures in their financials, most of the firms adjusted the earnings positively. Eyeing the fact that sector’s role in lifting the whole market profitability is crucial, it is safe to say that in case of a bullish global prices, the industry will face dazzling days.
The below table briefly points to the EPS changes for major companies:
Giants Closed Sunday at New Highs
In the Market
Buyers showed up late to the party of Tehran Stock Exchange on Sunday but were still able to recoup modest morning losses and push the major averages to fresh new highs. The uptick during the final hour prevented a mixed finish with the TEDPIX (+0.08%, +59.52 points) settled just above its flat line.
Today’s pause wasn’t a surprise given the equity market’s recent winning streak. However, below the surface, some uneasiness may be developing among investors as news out of earnings wraps the budgets in a blanket of uncertainty.
The telecom sector jumped from the lower portion of today’s standings to the leaderboard. The sector’s giant MCI ( HMRZ1, IRR 34,918, 0.57%) was in high demand early hours and ended the day in green. The big dady. TCI, could not synchronize with the pace and let behind for (-0.26%) on the last trade. The traded volume for both companies was not impressive though.
Utility providers on the other hand, outperformed and finished in the green. Mostly due to its dazzling EPS forecast, Mobin Petrochemical (MOBN1) changed hands more than 13 mn in volume and the ticker closed at IRR 3,999 (+2.85%). Mapna Power Generation (BMAZ1) finished its recent loosing strike with only 32K traded volume and a closing of IRR 11,026 (+1.54%). Despite the red trades of “Mahtab Kahnjou” Power Generation (KAHZ1) in final hours, the closing stood at IRR 10,533 (+2.02%).
On the other side of the board, the poor helpless Banking lost big today again to continue its doomed path. Raveling the disappointing 2017/18 FY earnings, Tejarat bank ticker was halted early before the market bell. Mellat bank stock traded for 40 mn shares on deep red to stamp most negative points on Tehran Stock Exchange index. With Saderat Bank to return to the market any days now, future health of the sector is under a big question mark.
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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