Mongolian Market Updates | August 6, 2024

📰 Good morning,

Companies are reporting strong financial results in the first half of 2024, and several of them announced to distribute dividends from their half-year profits.

In this week’s newsletter:

• Market News

• CMM Research

• MinePro 2024 event

🏦 Market News

• In the first half of 2024, Invescore NBFI [MSE: INV] total assets increased by 88% compared to the previous year, reaching ₮682.7 billion. The interest income also saw a significant rise, reaching ₮56.5 billion, a 110% increase from the previous year. This led to a 140% increase in net profit, which reached ₮19 billion. Additionally, in July, ₮3.47 billion shares were traded on the Mongolian Stock Exchange, with ₮3.33 billion being portfolio trading.

• The share price of LendMN NBFI [MSE: LEND] rose by 45% last month to reach ₮144.

• The sales revenue of Tavan Tolgoi [MSE: TTL] in the first half of this year was ₮518 billion, marking a notable 1,339% surge compared to the same period last year. Furthermore, the company's share price experienced a 34% increase in the last month and has seen a 115% increase since the beginning of 2024, reaching ₮36,980.

• APU [MSE: APU] will distribute a dividend of ₮55 per share from its first half of the year profits. The dividend yield is 5.5% based on the closing rate on August 1st.

• In the first six months of this year, Innovation Investment [MSE: QPAY] made sales revenue of ₮10 billion and achieved a net profit of around ₮5.3 billion, which is roughly equivalent to the net profit in 2023.

🟣 CMM Research

Our monthly market update for July is out. In this month’s market update:  

• Economic Highlights

As of July 31, 2024, the total value of outstanding bond issues on the market stood at MNT 1.92 trillion which is a 0.05% increase compared to the previous month.

• Macroeconomic Expectations

The latest inflation forecast reveals a slight decline compared to earlier surveys, yet suggests a gradual upward trend for the future. In the second quarter of 2024, analysts had anticipated an inflation rate of 8.8% in the previous survey, which has now been adjusted down to 6.8% in the current survey.

• The Banks Earning Results

Net interest income and net profit growth were primarily driven by the top five banks, with increases of 30.9% and 58.7% YoY, respectively.

📢 MinePro 2024 📢

CMM will co-organize the MinePro 2024 International Quarrying and Mining Exhibition & Convention on October 2-5.

The "MinePro 2024" exhibition will feature various stakeholders including supplier enterprises, mining project owners, international investors, financial institutions, consulting services, technology providers, and other service providers.

This event will serve as a platform for knowledge exchange, strategic partnerships, and investment opportunities, specifically focused on advancing sustainable mining practices and driving innovation in the Asian market. We aim to promote mutually beneficial global partnerships among local mining companies, development agencies, and international and local financial organizations. For more detailed information about the event, please click HERE.

If you are interested in participating in the event, please click HERE to register.

🟣CMM Services

Capital Markets Mongolia (CMM) specializes in providing strategic advisory to public companies on optimizing investor relations (IR) and advising on upcoming IPOs, bond issuances, and effective participation in the capital markets with a focus on efficiency and reputation. Additionally, we undertake market research and provide financial PR services.