More Tier-1 MSE-listed companies release semi-annual report

Several Tier-1 Mongolian Stock Exchange (MSE) listed companies continued their presentation of the semi-annual financial and operational report at MSE.

Mongol Post, the owners and operators of the main postal network in the country, reported that its net sales increased by 32 percent to reach 7.7 billion MNT in the first half of 2018. The company provides over 30 services, including universal postal services throughout 21 provinces, 330 soums, and 38 postal outlets by 900 employees.

“Today, Mongol Post is exchanging with more than 200 countries; three to six times in a week, with international partners; two to four times in a week between provinces. Besides this capacity, Mongol Post exchanges EMS traffic with 38 destinations. We have more than 30,000 mailbox owners, over 200,000 press subscribers. Every year, we deliver over 10 million mail, letters and parcels to its destination,” the company stated.

Meanwhile its net profit reached 906 million USD, an increase of 50 percent. The company has upgraded its IT infrastructure using the proceeds raised from public and introduced new products and services, such as delivery, transit service and logistic transportation as well commenced baggage storage and delivery in all provinces. It also has been informed that the company is working on running international remittance and insurance intermediary services and expanding logistics services.

Another Tier-1 listed company MIK Holding JSC, established as the parent company of Mortgage Corporation HFC LLC (MIK HFC) through a share-swap agreement by the shareholders, presented its semi-annual report. The company’s main operations and aim is to develop the secondary mortgage market.

MIK HFC with special licenses obtained from the Financial Regulatory Commission (FRC), allowing it to issue Asset-Backed Securities (products) and provide Trust Deed and Transaction Administration services. As of 2018, MIK Holding reported total assets of 2.7 trillion MNT and equity of 162 billion MNT.

For the first half of 2018, MIK saw an increase of 11.7 percent in its net sales to reach 115.7 billion MNT and a net profit of 30.8 billion MNT, representing a 17 percent surge.

The company purchase mortgages with recourse at their outstanding value from commercial banks in to provide liquidity to these commercial banks, allowing them to originate additional mortgages.

Cashmere producer and exporter Gobi JSC reported a 64 percent increase in net sales to reach 55.6 billion MNT in the first half of 2018. Net profit increased by 30 percent to reach 4.4 billion MNT. Gobi reported that it has been working to expand its market reach, namely by opening franchise stores in China, Germany, and Turkey. In addition, the company reported that it recently began selling its products through amazon.com.

The company plans on an expansion of its factory, the construction of a new factory in Sergelen soum of Tuv Province, a UB Galleria store next to Sukhbaatar Square, and the opening of five more franchise stores in foreign markets.

One of the biggest milk and dairy producers Suu JSC reported on its performance in the first half of 2018, reporting that net sales rose by 45 percent to 35 billion MNT. While net profit increased by 8.3 percent to reach 2.2 billion MNT. The company recently paid off its six billion MNT bond raised on MSE. The tier-1listed company raised the largest debt offering on the market to date in June 29, 2017.

The Suu bond was backed by its shares and offered an annual interest rate of 17.5 percent. This helped attract public interest due to the high yield it offered while exemplifying to other companies and businesses the possibilities of cost-effective capital-raising, MSE said.

The bonds were actively traded on the secondary market of MSE, reaching a total turnover of 4.8 billion MNT. According to CEO of MSE Kh.Altai, the bond helped improved the liquidity of Suu’s shares. Its shares surged 64 percent last year.

According to CEO of Suu JSC B.Gantulga, the company has increased its annual revenue by 41 percent after the issuance of the Suu Bond. He added that it is possible to further increase revenue as the company is adopting new packaging machinery and equipment. In addition, Suu is planning to supply new dairy products into the market in December, including less fatty yoghurt and milk beverages.