Agah Mutual Fund Fact Sheet (Aug 2016)
Issuance of salam sukuk for PGSOC
The salam securities issued by the largest gasoline producer in the country, namely Persian Gulf Star Oil Company, sold out in a fraction of seconds on Iran Energy Exchange (IRENEX). The financing facilitated by the issuance of 1,400,592 contracts with the base price of IRR 2,141,950. The bond’s yield rate is 20% paid on a daily basis to the holders of the salam.
Banks loaned more than USD3.5bn on the first third!
- CBI stats show a 37.8% increase on loans granted in 2016/17 first four months. Facilities paid as working capital had a 67.8% share from the total figure and grew 42.6% contrary to the same period last year.
- Just a week after US secretary of state, John Kerry, addressed European banks to resume banking interactions with Iran, a delegate of sector’s senior officials are to negotiate with Washington’s politic men next week. Evidence shows there will a debate over US clarifying which parts of legal barriers are to relax officially. It has been 5 months pass JCPoA and foreign delegations confirmed a state of no progress regarding mutual banking cooperation. It goes without saying, US brutal fines on EU banks violating the sanctions are still remembered, yet the Europeans are decisive to ease the hurdles.
- Auto giants, “Saipa” and “IKCO” settled over 20% of debts to the part makers. “Over the past three weeks Iran Khodro accelerates debt reimbursement, Saipa is to take proper measures as well”, Said Arash Mohebinezhad, secretary of Automobile Manufacturers Association (AMA). It might be finally the catalyst industry need to incept a more vivid route after all.
- Led a delegation of experts, IMF first deputy, arrived in Tehran today. David Lipton is to deliver the keynote on Tuesday in a seminar to be held at ICB, in addition to having meetings with senior Iranian officials.
- In addition to the problems arisen for Cement companies caused by the recession and difficulties in sales, another debate has also raised as pollution. All cement production lines in Tehran Cement Company are closed and inactive for development and installation of conditioning and air filtering systems until the further notices. The pervasiveness of this situation will soon face us with discontinuation of production in other companies due to air pollution. Owning 5 production lines with the capacity of 12 thousand and 100 tons per day, the Tehran Cement Co., as the country’s largest cement manufacturers, are located in southeast of Tehran province.
- Mobarakeh Steel Co. released its next year budget. The company’s EPS for next year has been declined by 11 percent to 450 IRR compared with current year budget. There are not much differences between this year and next year budgets and the margin return remained unchanged. It must be noted that the company has considered 35,000 IRR for the US exchange rate which is a reasonable rate for a company with more export than raw materials import. 1 to 3 percent rise in rate of sale was taken optimistically. In general, we could say that the company released a very conservative forecasted report for the next year. Despite of any changes in rate of products, the company has nothing more to offer. By considering today’s share price (1,970 IRR) and next year forecasted EPS, the share is currently trading with 3.6 p/e which is not a good sign. The market which gives such low p/e ratios to its big cap companies has no liquidity and confidence.
- In banking sector, interesting technical curves are shaping. The possibility of forming reversal patterns is getting stronger verified by positive divergence. In the last meeting of Money & Credit Council the doubtful receivables were approved to be considered as taxable costs which could be good news for this sector. On the other side, this could be a threat as banks may start to accumulate more reserve. In general, holding this sector’s companies could be one the best choices in this market.
- The ironmongery union chief announced a reduction in prices from 1000 to 1200 IRR in metal market and declared that Esfahan Steel Company (ESCO) is going to provide liquidity through selling its products lower than the market price. The same procedure can be generalized to other steel companies. There is also news that in order to sell their products, ESCO has also decided to retail in market. It could be generally said that with regard to the recession in the country, particularly in construction sector, this trend may continue and unsatisfying reports will emerge gradually from the sector’s companies as a result of their sales.