STOCK EXCHANGE: Profit cheater Tokmanni slips on the stock exchange – “The risk of a profit warning is high”

The Helsinki Stock Exchange was on a gentle rise on Monday. The main market theme was the Iran war, which began with the US invasion of Iran in February. President of the United States Donald Trump rejected Iran’s proposal to end the war.

The OMXH general index, which describes the price development of shares on the Helsinki Stock Exchange, was 0.3 percent higher than Friday’s closing reading, i.e. at 13,473 points.

As usual, the heaviest decliners on the stock exchange were the large companies that are of interest to international investors as well. Network manufacturer Nokia was 1.7 percent higher at 11.14 euros. Fuel company In this was 3.1 percent higher at 28.19 euros.

The war in Iran has raised the price of oil, which has significantly strengthened Neste’s share price this year.

Unlike usual, among the most traded stocks on the exchange was a discount company Tokmanniwhich published an interim report last week that was weaker than analysts’ expectations. The share was down 1.2 percent at 6.37 euros.

“Achieving the guidelines requires an improvement in results”

Analysts have changed Tokmanni’s recommendations and target prices.

Bank SEB lowered Tokmanni’s recommendation to hold level from buy level and target price to 6.50 euros from 10.00 euros. Bank OP lowered Tokmanni’s target price to EUR 7.00 from EUR 8.00 and repeated the reduce recommendation.

Analysis house Inderes lowered Tokmanni’s target price to 6.7 euros from 7.5 euros and repeated the reduce recommendation.

Tokmanni’s problem has been expanding into Sweden with the Dollarstore acquisition. Dollarstore has not been a success, at least so far, and weighs on the company’s numbers. Tokmanni is trying to renew Dollarstore, which brings expenses.

The company guides its turnover to reach 1780–1860 million euros this year and adjusted operating profit to 85–105 million euros. The numbers predict an improvement from last year.

However, Tokmanni’s turnover decreased in January–March from a year ago. Adjusted operating loss shrank from the comparison period.

“Achieving the guidance requires an improvement in earnings and a turnaround for Dollarstore, the timing of which is uncertain. For this reason, the risk of a negative earnings warning is high for this year as well,” Inderes wrote in his comment.

Treasurer Commandment also fell short of the profit forecasts. OP raised the stock’s recommendation to add from reduce and lowered the target price to 7.10 euros from 7.30 euros. Inderes lowered Mandatum’s target price to 6.4 euros from 6.3 euros and repeated the reduce recommendation.

Mandatum’s share was up 0.7 percent at 6.58 euros.

Stock company Canatu announced the CEO Juha Kokkonen about changing to Maximilian Slawinskiwho will start in the new position on May 11.

Canatu was down 0.4 percent at 7.97 euros.

City stock drops after the result

Providing storage facilities City warehouse published his review of the beginning of the year. Turnover increased and adjusted EBITDA improved, but adjusted operating earnings per share slipped. The result guidance remained unchanged.

Cityvarasto has sought growth by expanding its operations, which was reflected in the numbers at the beginning of the year. Profitability, i.e. the share of adjusted EBITDA in turnover, weakened due to expenses, for example, CEO Ville Stenroos commented in the review.

According to Stenroos, the costs were, for example, growth-supporting recruitments, marketing investments and costs related to being in the First North marketplace.

Cityvarasto’s share was down 0.3 percent at 16.75 euros.

The earnings season continues. For example, Kamux, which sells used cars, and Outokumpu, a steel company, will publish their interim reports tomorrow. Others results publishers of the week are, for example, a brand company Maridress and a software company Qt Group.

Mandatum, which is popular with Finnish investors, will pay a dividend on Wednesday. If you want to receive dividends, you must buy the shares before the ex-dividend date. The investor receives dividends even if he sells the shares on the exit date.

The deal didn’t work for Trump

The US attacked Iran with Israel in February. Iran has kept the Strait of Hormuz, which runs next to the state, closed, which affects the entire world economy, because a significant part of the oil traffic passes through the strait.

The price of Brent oil was up 2.6 percent today at $103.93 per barrel. The price was around 60 dollars at the beginning of the year. The highest price has been almost 120 dollars this year.

The price of oil is not only visible to consumers at the gas pump, but is reflected in the companies’ business operations and product prices, for example in the form of transportation costs.

Over the weekend, Iran submitted a proposal to the United States to end the war, but US President Donald Trump announced that he would not accept the proposal.

Trump will meet with the General Secretary of the Chinese Communist Party this week Xi Jinpingin.

The futures market does not provide a clear bullish or bearish opening for Wall Street. Dow Jones and S&P 500 stock index futures are in a gentle decline and Nasdaq is slightly up.

In Europe, stock markets were largely down. For example, Frankfurt’s general index was down by 0.2 percent and Paris’s Cac by a good 40 percent.