analysis by Meta_Technical about Stock فرآور: Buy recommendation (9/30/2020)

The negatives of the Tehran Stock Exchange are an epidemic that has caught valuable companies. "Process" has declined approximately 2 % in the last six months, and although this price drop is insignificant compared to many other symbols of this market; But given the company's status, it seems that the share price drop does not justify at all. The exchange rate has grown dramatically in recent weeks, and according to the company's reports, zinc bullion rates are determined by global rates, market elasticity and free exchange rate within the framework of group policies, and the domestic sales rate depends on the buyer and seller agreement in the commodity exchange. On the one hand, the demand for the commodity exchange seems good, and on the other hand, according to the news of the Corona vaccine, the prospect of global prices of zinc bullion and other commodity is also positive. It should be noted that "Process" was selling 2 percent more than September 2 and 2 percent more than September this year! The company's total revenue in the first six months of this year was 5 percent higher than the 6 -month income. The strange thing is that the company had no export sales in September. "Zinc" is traded in the world markets in the $ 1 range. Zabihullah Duji, financial director of the Iranian Mineral Processing Company in an interview with Stock Exchange, said: "Given the currency exchange rate and the global price of zinc bullion, we have no worries about sales revenue." But the point is that with the rise in world prices, the cost of supplying raw materials has also increased, and this increase in the price of mineral soil has increased the cost of the company. In addition, the restrictions on Corona and the boycott and the closure of the borders have also contributed to the cause and exacerbated the problems of the industry's producers. The bullion industry activist said: Only 5 % of domestic production capacity meets the total need of domestic market and surplus production must be sent to export markets. But unfortunately, export -related regulations and frequent increase in shipping fares are a threat to producers. We hope that with the emergence of the new Minister, export conditions will be facilitated so that producers will be able to send the domestic market needs to export markets and have both currency and exchange rate growth. Financial Manager of Iran Mineral Processing Company emphasized: Currently, manufacturers have pledged to meet domestic market needs and therefore, zinc bullion must be supplied on the commodity exchange and the commodity exchange signal to signal sales and allow surplus export permission. Company has offered its product on the stock exchange in accordance with the rules and regulations; But for export in accordance with the provisions and promises, no cooperation has been made. We do not deny the restrictions from Corona and sanctions; But with more support for producers and facilitating exports, the pressure on producers can be reduced. If export facilitates, zinc bullion exports were attractive at the current exchange rate. "Given the fall in the share price, the" process "has reached the price floor and the lower price drop is not justified," he said.