The second fixed-income Exchange-Traded Fund (ETF), Ganjineh Ayandeh Roshan Investment Fund, will offer its 10,000-rial investment units, bearing a 26.5 percent interest, starting June 6. A minimum of 10 and a maximum of 49 million investment units can be purchased by each investor. The underwriting period will be three days and most of the units have apparently been bid for. Secondary trading of the units will start in IFB’s new financial instruments market. The $15-million investment fund will deposit 90 percent of its money in banks and invest the rest on other securities. The minimum compounded daily interest of the fund is set at 23 percent, though the fund’s managers are trying to raise it to 26.5 percent with no charge.
Yazd Alloy Steel Company recognized 523 IRR earning per share, with $ 24.8 M capital at the end of FY2014 (ending on 20th March), which shows 39 % decrease against the actual EPS gained in the same period last year ,with the new capital increase. This company, with $12.1M capital, delivered 1756 IRR actual EPS in FY2013, which equaled 856 IRR EPS with the new capital increase. The net sales, demonstrate 60 % rise in FY2014 in comparison with the fiscal year before. Also, gross profit and expenditures sum rose by 74% and 3 % respectively versus last financial year. Moreover, the operational cost experienced 85 percent increase, but financial expenses were doubled and reached $4.25 M.
This company recognized 332 IRR per share in its audited report for FY2014, which shows a significant 295 percent positive growth against its actual performance last year in the same period. The overall revenue of this auto parts maker was about $14.5 m in FY2014 (ending on March 20th) which demonstrates 220 percent rise in comparison with last fiscal year. Although Iran Auto-Parts had recognized operational loss of around $106000 in FY2013, it managed to gain $20.6 m operational profit at the end of the FY2014. Thus, this company, which had projected 211 IRR per share in its latest periodical forecast for FY2014, was able to improve it to 332 IRR per share in its performance audit report for the fiscal year2014, which saw 57 percent increase.
Shares of Iran Tractor Industrial Group outpaced its yesterday settlement price by 5%. The news of paying high cash dividend by Siba Motor Co., one of the Iran Tractro’s subsidiaries, increased the buying pressure on Machinery & Equipment sector. Iran Tractor Industrial Group announced 760 IRR EPS for FY2014 which could be increased by 210 IRR due to this dividend. The rumors say that Siba Motor has the ability of dividing 600 IRR bn in its assembly general meeting. The part of Iran Tractor from this split will be 210 IRR per share.
As the oil prices have edged up to 60 USD levels, the petrochemical trend shares became more attractive for the market players. Since those companies are buying the crude oil 5% percent less than the Persian Guld FOB price, their EPS could be adjusted positively. Selling the products with higher prices and buying cheaper raw material will affect their financial statements in long run.
Two important but untimely events in TSE
First, as it was already announced by the SEO (Securities and Exchange Organization), Stock price fluctuation domain increased. This domain which used to be 4 % saw an increase of 1 % and became 5 % from Saturday 23th. However, this event is not happening at an appropriate time as the current conditions in the stock market aggravate the positive and expected impact of the new decision which was awaited by the investors and artificial entities, active in the market, long ago. This could have led to better and more liquidity, improvement in stock prices of top companies in the market, rise in transactions’ volume and value and most significantly faster balance and equilibrium when one specific stock happened to face abnormal flood of buyers or sellers.Nevertheless what happened was quite contrary to the expectations the authorities bore in their mind. In fact, what went on in the aftermath of this decision was somehow predictable and it is a big question why such measures are being introduced at an inappropriate occasion when there is no genuine support from the government and on top of that the shadow of a final nuclear deal is still on the body of the market. Considering these issues which were not solved yet thus resulted in selling pressures from those who are seeking any opportunity to leave the market.
“The companies in pharmaceutical sector have a great potential for growth and due to their low P/E ratio (near 4), they could bring more return even than the governmental bonds”, the portfolio manager of Etela Alborz Investment Co. said today. He added that although the companies like Alborz, Tolid Darou and Osveh pharmaceutical companies will have a better performance if the sanctions will be removed, they have low risk opportunities with more than expected return. He also mentioned that the KBC Company has signed new contracts for importing medicine to the country. He assessed the KBC financial performance at good levels.
Ministry of Urban Development could finally convince the central bank for raising the mortgage loan from 600 to 800 IRR mn. Although confirmation of this news will be officially announced next week, the housing sector index boosted in yesterday and today’s market. Due to heavyweight downtrend in all sectors in the country, the share of housing companies are traded 70 percent less than their net asset values. However, one might wonder if this decision could increase the demand in this sector. Regarding the high inflation, it should be noted that following the high interest of mortgages the payoffs of obligations might not be affordable by many people. Currently the volumes of trades in real estates are significantly low and so many housing projects are halted. The rate of sale is so close to the costs that no profit margin is left for the construction and housing companies.
Neyshabour Sugar Co. released its 2Q2015 audited report. Although the revenue increased by 20 percent compared with same period in FY2014, the company could not recognize any gain. However, the company earned 112 IRR per share in same period last year. The company’s net profit in 2Q2015 dropped by 100 percent compared with 2Q2014 due to its 20 IRR bn loss reserves.
Most of the sugar companies are facing the raw material shortage and importing crude sugar is not allowed by the government. Due to lack of liquidity the companies are financing their fixed costs with high interest loans and their production lines are stopped. Based on newly released data, Neyshabour Sugar Co. could not recognize any gain in the first half of FY2015. However, the company made 107 EPS for the same period last year. The company forecasted (36) IRR loss per share for FY2015. The company’s gross profit in 2Q2015 decreased from 21 to 5 percent compared with same period a year before. “Not only the Neyshabour Co. is in a critical condition and all the productions are halted, Shahroud Co. is also suffering from the same situation” the CEO of Neyshabour company said. Shahroud Sugar Co. is also recorded (108) IRR loss per share in 2Q2015 while, the company’s EPS in same period last year was 106 IRR. The gross profit in 2Q2014 was 20 percent which reached to 18 percent at the end of FY2014. In the first half of FY2015 the gross profit decreased to (-1) percent and is estimated to reach 1 percent in FY2015.