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BDSEC JSC Weekly Market Update Mongolia’S Largest Broker December 7, 2020

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BDSEC JSC Weekly Market Update Mongolia’S Largest Broker December 7, 2020 BDSEC JSC Weekly Market Update Mongolia’s Largest Broker December 7, 2020 MSE Market Commentary MSE Top Movers • MSE Top-20 Index was up 0.42%, MSE A Index ended higher 0.18%, When will MSE delist some companies? (marketinfo.mn) and MSE B Index decreased 0.01% Market capitalization amounted to • Mongolian Stock Exchange was established 30 years ago, and 2,606.3 billion and average volume of 134,654 shares were traded at an currently 194 companies listed on MSE. Of which businesses of many Indexes Points % Change aggregate average value of MNT 20.4 million. companies have already been halted, some companies have not held MSE Top-20 Index 17.658.44 +0.42% • APU (APU) was the most actively traded stock with an aggregate value shareholders meeting and violated interest of their shareholders, of MNT 19.8 million. Following was Erdene Resource Dev. (ERDN) with and stocks of some companies have not been traded in the market. MSE A Index 8,117.58 +0.18% its total value of MNT 11.3 million. However, Mongolian Stock Exchange has not taken arrangement on MSE B Index 7,326.15 -0.01% • Tier 1 top gainers of the week were Mongolian Mortgage Corp. (MIK), the matter till now. LendMN (LEND), and Bayangol Hotel (BNG) on the other hand BDSec • Looking at the statistics of stock trading, stocks of 58% out of all Market Summary Value (USD) (BDS) lost as much as 8.07% of its value and closed at MNT 791.5. companies listed on MSE have not been traded on the market for last Market capitalization 914,491,673 Mongolia Headlines one year. • Around 30 companies’ stock trading composed 97% of total trading on Daily average turnover 7,143.21 Local companies raised MNT 77.3 billion from long term the market. Trading Value Leaders Close (MNT) Value (MNT) investment (marketinfo.mn) • 32% of all listed companies did not hold their annual meeting of • Companies raise money from loan of commercial banks or investment. shareholders in 2020 so Financial Regulatory Commission announced APU (APU) 578.63 19,755,035 Mongolian Stock Exchange was founded in 1990; however, that they have terminated the authority of Board of Directors the Erdene Resource Dev. (ERDN) 838.39 11,268,246 development of capital market or investment has been inactive during companies. Mandal Insurance (MNDL) 48.5 10,335,122 the period. • 25% of all listed companies distributed dividend from their net profit of • In order to raise money from capital market, the companies must fulfill 2019 to their shareholders. Top Gainers Close (MNT) % Change some requirements of regulatory institutions and spend more time on • Currently MSE have submitted warnings to improve their operation investigation process. On the other hand, if companies raise money and fulfill their obligations within the framework of legislation to 42 Tier 1 from investment or capital market through IPO issuance, the company companies. Unless the companies will fulfill their obligation, MSE Mongolian Mortgage Corp. (MIK) 11,500 +4.55% will be no debt and interest burden in long term. Therefore, many should delist the companies. companies would like to issue IPO and become a public company. Bank of Mongolia purchases 21 tons of precious metal (bloombergtv. LendMN (LEND) 29.79 +4.31% • 12 companies have already issued IPO in local market and raised MNT mn) Bayangol Hotel (BNG) 29,700 +3.77% 77.3 billion from investors. As a result, governance of the companies • Bank of Mongolia bought 1.7 tons of precious metal in November. As Tier 2 & 3 has been improving and capital market of Mongolia has been a result, Central Bank has purchased 21 million tons of precious metal developing during the period. since the beginning of this year, which increased by 6.5 tons or 45% Technicimport (TEX) 8,740 +26.67% • If the companies had acquired loan of MNT 77.3 billion from commercial compared to the same period of last year. In particular, Central Bank Aduunchuluun (ADL) 978 +14.97% banks, they would have paid MNT 35 billion for the interest payment. has bought 19.3 tons of gold and 1.7 tons of white silver during the Tandem invest (VIK) 18.5 +14.91% Therefore, capital market creates more chances to the companies. period. More than 70 employees of Shivee Ovoo deposit tested for • The Bank purchased 106.5 kg gold from Darkhan-Uul province and Top Losers Close (MNT) % Change Covid-19 (news.zindaa.mn) 98.7 kg from Bayankhongor province. Bank of Mongolia has bought 1.8 • Shivee Ovoo JSC has resumed its operation due to the cancellation of tons of gold from the two provinces since the early this year. Bank of Tier 1 strict lockdown in Gobisumber province. As of the end of November, Mongolia estimated that they would have bought 21 tons of precious BDSec (BDS) 791.5 -8.07% more than 70 employees of Shivee Ovoo JSC tested for Covid-19 and metal and increased foreign exchange reserve by USD 1.2 billion by executives of the company highlighted that all employees of the the end of this year. Now Central Bank has already reached its planned Talkh Chikher (TCK) 17,200 -4.44% company will test for Covid-19 this week. amount. Ard Insurance (AIC) 705 -0.70% • Also, the employees have been transported by buses which are • As of the end of October, foreign exchange reserve of Mongolia has Tier 2 & 3 completely disinfected and only 22 people will get on the bus as well reached USD 3.7 billion. Central Bank has been granting discounted as disinfection is done in each two hours. loan to gold mining companies within the framework of Gold-2 Mongol Savkhi (UYN) 425 -10.53% • Furthermore, Shivee Ovoo JSC solely composes around 30% of program. The Bank has granted around MNT 110 billion finance to the Shivee Ovoo (SHV) 1,800 -10.00% Mongolian thermal coal consumption. As of 25th November, the companies as of November. company has stripped 6,978 thousand cubic meter soil and sold 1.7 Telecom Mongolia (MCH) 351 -7.87% million tons of coal. Please visit the link for MSE stock quotes: http://bdsec.mn/trade/ BDSEC JSC Weekly Market Update Mongolia’s Largest Broker December 7, 2020 Mongolia Review Avg. "Price Avg. value "Shares MCap EV ‘19 P/E P/B EV/EBITDA** Yield*** "MSE volume Company Ticker Sector Last traded per Out. Category" traded Close" day in $* (net, m)" MNTbn USDm MNTbn 2019 2020H1 2019 2020H1 2019 2020H1 2018 2019 per day* APU APU Consumer S I 579 2,676 13,418 1,064.2 616 216 560 8.3 15.0 1.3 1.3 4.2 10.7 7.9% 12.3% SUU SUU Consumer S I 205 356 4,969 344.0 71 25 100 12.4 33.9 2.8 2.6 7.0 22.4 1.6% 2.4% Tumenshuvuut TUM Consumer S I 159 484 9,291 200.0 32 11 38 9.9 15.8 1.4 1.3 9.1 17.1 0.0% 3.0% Monos Foods MFC Consumer S I 68 763 32,135 286.2 20 7 23 25.6 48.8 1.2 1.2 19.4 39.4 0.0% 1.5% Talkh Chikher TCK Consumer S I 17,200 72 17 1.0 18 6 21 7.2 21.5 0.4 0.3 3.3 22.5 1.2% 1.3% Makhimpex MMX Consumer S I 2,985 4,482 5,273 3.8 11 4 16 13.8 n/m 3.4 3.7 7.3 -55.4 4.0% 4.0% Gobi GOV Consumer D I 192 919 13,442 780.1 150 52 419 66.2 n/m 1.9 2.6 8.7 -20.9 3.5% 0.0% Darkhan Nekhii NEH Consumer D I 15 110 21,437 1,105.5 17 6 27 0.0 60.1 0.0 0.4 6.9 35.3 0.0% 1.4% Lend.mn LEND Financial I 30 1,617 149,723 800.0 24 8 - 4.9 8.5 1.4 1.3 n/m n/m 3.4% 5.0% Ard Credit ADB Financial II 67 1,127 48,969 210.0 14 5 - 5.9 25.6 1.3 1.4 n/m n/m 0.0% 6.3% Invescore NBFI INV Financial II 2,919 8,329 10,747 61.0 178 62 - 18.2 29.2 4.3 3.8 n/m n/m 0.0% 0.0% Mandal Insurance MNDL Financial I 49 1,371 8,730,821 624.3 30 11 - 5.3 14.1 1.5 1.5 n/m n/m 2.1% 8.2% Ard Insurance AIC Financial I 705 2,052 8,229 25.0 18 6 - 10.3 30.1 1.5 1.5 n/m n/m 3.6% 4.8% BDSec BDS Financial I 792 1,363 3,974 13.5 11 4 - 535.1 n/m 0.6 0.6 n/m n/m 0.0% 1.3% Bodi Insurance BODI Financial I 130 3,920 98,811 235.3 31 11 - 15.4 39.9 3.1 2.5 n/m n/m n/a n/a Tavan Tolgoi TTL Mining I 6,075 685 346 52.7 320 112 269 6.7 81.8 3.6 6.4 4.1 63.3 14.0% 13.5% Erdene Resource Dev. ERDN Exploration III 838 1,529 5,200 184.7 155 54 155 - - - - - - 0.0% 0.0% Bayangol Hotel BNG Hospitality I 29,700 592 57 0.4 13 4 1 5.9 n/m 0.4 0.4 0.4 -2.2 1.2% 1.2% Genco Tour Bureau JTB Tourism II 90 5,694 170,899 100.0 8.95 3 9 7.1 n/m 0.9 1.0 4.2 -16.2 0.0% 11.2% Hermes Centre HRM R/E II 140 27 549 78.5 11 4 9 13.4 20.7 1.3 1.3 8.6 16.0 6.3% 7.0% Mongol Basalt MBW Industrial II 180 163 2,386 56.4 10 4 11 30.3 523.9 0.4 0.4 10.0 574.5 0.6% 2.2% Juulchin Duty Free SUL Retail II 75,000 19 1 0.1 5 2 5 7.2 326.7 2.1 2.1 6.1 269.2 13.3% 0.0% USDMNT Rate 2,849 * Based on the last 6 months ** EBITDA is based on BDSec estimates BDSEC JSC Weekly Market Update Mongolia’s Largest Broker December 7, 2020 Mongolia Review Price (%chg.
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