Cyprus Stock Exchange listed companies managed to increase their combined profit for 2007 by 73.6% to EUR 1.7 bln based on final results compared to EUR 977.8 mln in 2006, according to Financial Mirror data based on official final results reported by the companies.
The 73.6% profit growth of the CSE companies adequately justifies the 24% gain registered by the CSE Index in 2007, which saw the total market capitalization of the CSE to climb to EUR 20.5 bln, but by April 2008, the market cap had declined to EUR 13.8 bln, in line with the general slump seen on all stock markets.
Measured in another way, the decline has brought the total CSE market cap below Cyprus’ Gross Domestic Product (GDP), which according to Cyprus Statistics Department estimates climbed 4.4% in 2007 to EUR 15.5 bln.
The Main Market reported a 111% YoY increase in total profit to EUR 1.3 bln led by strong gains reported by the island’s three major banks.
The Parallel Market combined profit increased by 140.3% to EUR 72.6 mln, while the Alternative Market titles boosted profit by 132.5% to EUR 197.5 mln.
The investment companies sector reported the worst performance, with combined profits actually declining by 39% to EUR 143 mln from EUR 234 mln in 2006. The Shipping sector, with only 1 title had EUR 1 mln profit while the Special Category sector reported a loss of EUR 16.6 mln for 2007.
Most profitable
Marfin Popular Bank (MPB.CY) reported a 283% YoY increase in profit to EUR 563.4 mln, taking the lead as the most profitable company listed on the CSE in 2007.
Bank of Cyprus (BOCY) reported total net profit of EUR 485 mln, up 53% compared to EUR 317 mln reported in 2006, while Hellenic Bank (HB.CY) boosted profit by 129% YoY to EUR 133 mln.
Demetra Investments (DEM.CY), the fourth most profitable company with EUR 38 mln saw a 49% decline in profit, but the fifth most profitable, White Knight Holdings (WKH.CY) lifted profit by 204% YoY to EUR 35.9 mln.
The other most profitable companies were K&G (KG.CY) with EUR 34.3 mln, SFS Group (SFS.CY) with EUR 30.2 mln, Elma Holdings (ELMA.CY) with EUR 27.4 mln, Aspis Holdings (ASP.CY) with EUR 25.6 mln and Interfund Investments (INF.CY) with EUR 25.4 mln in net profit for 2007.
Most loss making
New Marathon Tours (NMT.CY) broke the record for being the most loss making company on the CSE, reporting net losses of EUR 33 mln, up 650% YoY compared to its EUR 4.4 mln loss for 2006.
Sea Star Capital (SEAS.CY), which promised so much but delivered so little was the second most loss making company, reporting total losses of EUR 10.3 mln in 2007. Suphire Holdings (SUP.CY) follows next with EUR 8.35 mln losses, DH Cyprotels (DHH.CY) with EUR 6.6 mln losses and Avacom Net (ANS.CY) with EUR 3.8 mln in losses.
Market p/e at 11x
The significant decline in equity prices has corrected the price to earnings (p/e) ratio of the CSE, which according to Financial Mirror calculations has declined to a more manageable 9.7x on gross calculation basis while when adjusted for the weighted market cap of the profit reporting companies, the 2007 p/e is 11.2x.
The Financial Mirror method of calculating the p/e takes the market cap and results of the profit reporting companies and excludes all loss making, investment and special category companies.
