A description of the company's historical performance and profitability forecast by the company's valuer, Omid Supply Capital.
The company was converted to stock in 1403, and the subject of its activity is the utilization of industrial units for the production of iron and steel in various stages and other steel products. According to the financial statements, the company had about 40 KMT operating profit and almost 4 KMT net profit in 1404. Also, the company's average gross and net profit margins were announced as 22.6% and 18.6% respectively.
In the financial situation section, the company's capital in 1404 was equal to 800 billion tomans, the cumulative profit was about 12 hemats and the total assets were 73.5 hemats.
Forecast assumptions and revenue forecast.
In the performance forecasting section, the inflation rate and the exchange rate are considered as two main variables of the model. Based on the assumptions presented and the forecasts of the International Monetary Fund, the inflation rate and the dollar exchange rate in the coming years were included in an upward trend. The dollar exchange rate is also predicted based on the purchasing power parity model. Based on these assumptions, the company's operating profit in 1405 is estimated at about 53 hemat and its net profit is about 3.7 hem. Also, in the horizon of the year 1410, an operating profit of 364 hamets and a net profit of about 99 hamets is expected.
Development plans and changes in the product mix.
The company has several important development projects, including a sponge iron project, the production of steel ingots and projects related to the completion of the production chain. According to the announced plan, two pig iron and ingot projects will be commissioned in 1405, and the pellet production program is scheduled for June 1406.
By using these plans, the company's production and sales mix will change. In the current situation, steel and coil form the main part of the sales basket; But on the 1,410 horizon and with the full launch of the development plans, pig iron will have a significant share of the company's revenue mix.
In the forecasting model, the production capacity of new designs is gradually increased and after reaching the nominal capacity, production continues at full level. Also, some of the intermediate products will be consumed within the company to complete the production chain, and only its surplus is considered a salable product.
Sales forecast and final price.