Electronics companies to fare better this year

The main producers of electronic equipment that are listed on the Stock Exchange forecast that this industry will see a boost this year, the first time after three years of slumping demand.

The managers of these companies say that product demand is increasing and that clients filed more orders this year. However, the managers in this field do not expect shares issued by these companies to leap on the Stock Exchange, as interested investors are still lacking on the capital market.

“Even if the field of electronic and electrotechnic products does goes upward, I do not think the market will be largely influenced by this evolution,” atefan Varfalvi, Imsat Bucuresti general manager, told Ziarul Financiar. Imsat makes reserved estimations.

According to the management’s forecasts, turnover will reach 26 million dollars this year and 50 million dollars in 2005, with a profit of 4 million dollars. There are signs that these estimations may come true.

According to Imsat manager, the 6 million-dollar contract with General Electric is developing as scheduled and the company has recently signed a 14 million-contract with SNCFR to upgrade the railway system.

Imsat financial evolution was rather dull last year, when it registered a mere 15 million dollars in turnover and no profit. However, brokers value Imsat shares, which are still in low demand on the Stock Exchange, saying that the company’s core business will allow it to adapt to the new market trends. Imsat shares were quoted at 2,350 lei per share on March 21.

Imsat shares did not seem to revive last year and transaction values maintained at the daily usual level of several million lei.

“If the market did not react to the 14 million dollar-contract we signed, I see no reasons for it to react differently in the future. There are only a few and the same investment funds playing on the capital market and they have outflow difficulties,” Varfalvi says.