⭐ TOP SECURITIES COMPANIES | COMMUNICATIONS INDUSTRY | TOP-20 INDEX TREND

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Roses are red, violets are blue, single or taken, Valentine's is due! Time to put on your panic face and make a mad dash to the gift shop … 👀

🤔 DID YOU KNOW?

💬 COMMUNICATIONS INDUSTRY IN 2022

According to the National Statistics Office’s latest report, communications industry’s revenue increased by 8%, reaching ₮1.7 billion last year.

🖼 General picture

In terms of structure, the telecommunications sector dominates the industry's revenue, accounting for a significant 76%. The second largest contributor is television broadcasting.

2022

The communication industry recorded growth primarily due to the 17.9% increase in the revenue of broadcasting services to ₮230 billion. This was attributed to a boost in advertising revenue from broadcasting service providers. Additionally, the revenue of wireless communication services saw a 9.6% increase, while that of wired communications rose by 14.6%. The industry also experienced an uptick in its user base:

• 📺: Cable TV users increased by 3.8% to 991.4 thousand

• 📱: The number of active mobile phone users rose by 4.9% to 4.8 million

• 📡: Internet users grew by 1.2%, reaching 4.2 million

Letters and parcels…

The postal service, a crucial aspect of the industry, experienced significant growth in its volume of letters and parcels over the past year. The total volume rose by a substantial 45.7% to reach 8.8 million pieces, which was mainly due to a 27% increase in domestic letters and parcels. Business letters saw an even significant rise, growing 2.2 times to reach 1.6 million pieces.

📈 DATA STORY

The return of the TOP-20 Index has a tendency to decline during spring, as evidenced by 8 out of the last 11 springs experiencing a drop. The reason behind this could be the fact that January and February, the months leading up to spring, are dividend distribution months. As a result, stockholders may sell their shares after the dividend register is closed. On the other hand, the TOP-20 Index frequently experiences a steady increase during July. This can be attributed to a decrease in trading activity during this time, as Naadam, a traditional Mongolian festival, takes place and becomes the main focus for many Mongolians.

🔝 LEADING SECURITIES COMPANIES

In 2021, the securities firms listed on the MSE saw a historical high in trading volume, reaching a total of ₮2.8 trillion. However, in 2022, this volume declined to ₮1.2 trillion.

General trends

Their trading volume was dominated by stocks, making up 58.5% of the total, while bonds and ABS accounted for 41.5%. The primary market was the main venue for trades, with 65.3% of all transactions taking place there. This may be attributed to the IPOs of large companies that occurred last year.

• Additional share offerings of Erdenes Solutions (AMT), InvesCore NBFI (INV), as well as IPOs of Mon Beef (MBF), Sendly NBFI (SEND), State Bank (SBM) and Golomt Bank (GLMT) accounted for ₮342.6 billion or 31% of the top securities companies’ total trading volume.

🦈 The particulars

• Stock traders: Five out of the top 10 securities firms specialize in stock trading, with stocks constituting over half of their overall trading volume. For instance, InvesCore Capital's stock trading accounted for an impressive 88% of their total trading volume.

• Bond & ABS lovers: The rest of the group, led by BDSec (BDS), leans more towards investing in bonds and ABS.

• The big four: Golomt Capital, BDSec, InvesCore Capital, and Ulzii & Co. Capital were responsible for a significant portion of the trading activity among all 55 securities companies, accounting for 68.6%. These four firms have a common characteristic of being prominent underwriters in the market.

Looking forward…

Last month, the trading volume on the MSE experienced a 9.5% drop compared to the previous year, totaling ₮77 billion. Despite this decline, the securities industry is expected to see increased competition in the coming months. This is attributed to the imminent debut of several systemically crucial banks and state-owned firms through IPOs, in addition to the issuance of additional bonds and ABS on the market. These developments are anticipated to drive up the total trading volume on the MSE in the near future.

📅 EVENT

Join a festive celebration of Tsagaan Sar on February 18 in Virginia! Friends of Mongolia and the Mongolian School of the National Capital Area extend a warm invitation for you to participate in this cultural occasion.

Experience the traditional food, music, and activities that embody the spirit of Mongolia.

RSVP to [email protected] to help with the preparations. 😉

🏃 QUICK STORIES

📌 Sales revenue of Juulchin Duty Free (SUL) increases by 712% to ₮392 million in 2022. Although the company had incurred a loss of ₮99.8 million in the previous year, they made a net profit of ₮320 million in 2022. The major contributor to this remarkable achievement was the favorable foreign currency exchange rate gain of ₮398 million.

📌 Tandem Invest NBFI (VIK) to distribute dividends. The board declared a dividend payout of ₮1.32 per share from the net profit of ₮1.99 billion. The previous year, the company had achieved a net profit of ₮972 million, distributing a dividend of ₮0.85 per share to its shareholders.

📌 Sales revenue of Tumen Shuvuut (TUM) increases by 28% to reach ₮46 billion. This led to a corresponding increase in net profit, up 4% to ₮7 billion. The company has big plans for the future and intends to boost capacity by 20% this year, aiming to produce 117 million eggs.

📌 MSE’s (MSE) operating income drops by 22.6% to ₮4.2 billion. As a result, the company saw a 10.7-fold decrease in net profit that amounted to ₮297.6 million. This was due to a 87.2% increase in general and administrative expenses, totaling ₮4 billion, linked to last year's IPOs.

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💭 WATCH & LEARN

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Editor: E.Zolbayar
Writer: Ch.Anuun

Disclaimer: The information "Inside Mongolia" provides is for educational and informational purposes only. It is not intended to be and does not constitute financial advice, trading advice, or any other advice. The decision whether to take into account the information we provide is solely our readers' independent decision.