Author: Negar MoshirFatemi

With its 1,500 IRR bn capital, Iran Transfo Company recognized 721 IRR EPS in the fiscal year ending March 20, 2015 while its real return for the last year was only 355 IRR. Its net sales exceeded by 50% and reached 3,936 IRR bn and its final cost grew by 22% which altogether, resulted in the 1,035 IRR bn gross profit for the company which was 304% more than the last year. Furthermore, Iran Transfo’s sum of expenses was accompanied by a 52% fall and its operating profit reached 1,298 IRR bn experiencing a 61% raise; its financial costs were only 2% more than the previous year. In conclusion, as the statistics show, this company experienced a 103% raise in its profitability in the FY2014.

Hormozgan Cement Company could recognize 1,113 IRR EPS in the first half of the FY ending November 21, 2015. In its latest report, this company has negatively adjusted its EPS by 25% such that it decreased from 2,740 to 2,045. Holding 271 IRR bn capital, Hormozgan Cement Company could cover 54% of its adjusted return in the first half of the current year; it is so while it had covered 64% of its total budget in the same period the last year recognizing 2,834 IRR EPS. Of the reasons for this negative adjustment, one can refer to the non-recognition of the 6-month performance tax in the previous prediction, the non-consideration of any reserve for 2013 and 2014, and the increase of costs related to the personnel.

Behnoush Iran Company released its unaudited report for the FY2014 ending March 20, 2015. With its 164,608 IRR mn capital, this company only recognized 631 IRR EPS which shows a 52% reduction compared to the last year. Its net sales and final costs show 7% and 19% increase, respectively and its gross profit has been calculated to be 804 IRR Bn. Besides, its sum of expenses has grown up by 4%. It is so while its operating profit decreased by 31% and its financial costs increased by 9%. Under such conditions, Behnoush Iran Company negatively adjusted its return by 14.4%.

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TSE at a Glance

[caption id="attachment_3565" align="aligncenter" width="834"] TSE at a Glance[/caption] [caption id="attachment_3566" align="aligncenter" width="790"] Summary of trades[/caption]

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IFB at a Glance

[caption id="attachment_3567" align="aligncenter" width="817"] IFB at a Glance[/caption]

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Trading Halts & Delays

[caption id="attachment_3568" align="aligncenter" width="818"] Trading Halts & Delays[/caption]

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Trading Reopenings

[caption id="attachment_3569" align="aligncenter" width="820"] Trading Reopenings[/caption]

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Codal Release

[caption id="attachment_3570" align="aligncenter" width="817"] Codal Release[/caption]

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Market Overview

The market has still remained bullish. Its total index has moved up and sectors such as the banking and automotive are experiencing sales and purchase queues. Having been reopened today, however, the petrochemical sector seems to win the banking sector and lead the market in the following days. Based on our previous experiences in days before the negotiations deadlines in the past, we expect to witness more trades tomorrow. Many legal entities will definitely sell stocks to gain liquidity and some individuals will buy stocks merely trusting their guts in terms of the probable positive results of the negotiations. It is noteworthy to remember that investors should not be driven by their emotions and should make decisions rationally. In fact, there are advised not to get stuck in long queues since no extraordinary thing is going to happen in the short term in the performances of many of these companies after the agreement has been signed. It is crystal clear that if the stakeholders invest too much money on apparently worthy stocks (priced more than their real value), in case of no deal and after the burst of their price bubble, they will badly suffer, although the influence of the negotiations emotions cannot be denied due to the insufficient depth of our capital market. In conclusion, investors should behave rationally and take a long-term viewpoint in order to be safe in this unstable and moody market.

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. 

 

To contact the reporters: Negar Moshirfatemi at fatemi@agahmail.com