Forecasts and recommendations of analysts of IFH RESMI (Kazakhstan) for June 21, 2010

/IRBIS, June 21, 2010/ - Finance & Investment House RESMI JSC (Almaty, IFH RESMI) provided IRBIS overview of major events and their investment ideas and projections for June 21, 2010. Analysts of IFH RESMI are paying attention to investors on the following important events in the markets now: - Friday (18.06.2010), Groupe Danone SA (DANO LN, DANOY US) and Unimilk have signed an agreement to merge the dairy business in Russia and CIS. The combined company will be able to take a leading position in the market for dairy products not only in Russia but also in the CIS. Turnover of the new company would be approximately 1.5 billion euros ($ 1.9 billion). Controlling stake is owned by Danone - 57.5%, while shareholders Unimilk "will be 42.5%. Chairman of the Board of Directors will be Andrew Beshmelnitsky, CEO Unimilk, and operational guidance will Philip Kegels, general manager of "Dairy Products" Danone in Eastern Europe and Central Asia. Under the agreement, Danone will pay part of the shares in cash, about 120 million euros and will make the combined company's assets. Also, in 2014, to shareholders Unimilk "will be given a put, which will allow them to sell part or all of their shares in the new company, and Danone will be able to increase its stake to 100% in 2022. The market for dairy products in Russia and the CIS is one of the fastest-developing and offers significant prospects for long-term growth. This transaction will allow both companies to streamline production and boost its presence in the Russian market of dairy products to 30.8% (currently, Unimilk "- 16.5%, Danone -14.3%), whereas the current leader of Wimm- Bill-Dann "(WBD US) owns approximately 28.3% share of the market. - OJSC Wimm-Bill-Dann Foods (WBD US) announced its interest in buying shares from Groupe Danone SA (DANO LN, DANOY US) one of its major shareholders. Representatives of the WBD announced that a group interested mostly ordinary shares, which can be used to increase liquidity on the Russian stock market. They also clarified that these shares may be interested in WBD only at a certain price. Currently, Danone owns 18.4% stake in WBD, of which about 9% in the form of ordinary shares and approximately the same in the depository receipts. - June 14 annual general meeting of shareholders Kazakhtelecom, in which it was decided to pay dividends for 2009. Amount of the dividend was approved at the level of 17.5% of consolidated net income for the year 2009 and amounted to 4 780.6 million tenge, which corresponds to KZT422.09 per ordinary share. Analysts of IFD "RESMI" evaluate the financial condition of Kazakhtelecom as stable. Moreover, the company by 2020, intends to increase profitability by 70% from the level of the current year, plans to acquire assets abroad and in the future does not preclude the holding IPO. Given the growth prospects, analysts of IFD "RESMI" recommend to purchase shares of Kazakhtelecom the long term. Analysts of IFH RESMI give the following advice for investors in securities of issuers in Kazakhstan: -------------------------------------------------------------------------- Issuer Last price Predicted price* Up/down from Target RSI. Current price price** %*** ------------------ ---------- ---------------- ------------- ------- ----- Kazkommertsbak 440 796 80.9% 791 36.19 Halyk bank 295 409 38.6% 676 45.77 Bank Center Credit 555 1,218 119.5% 1,054 40.56 ENRC 2,280 On review 2,845 50.11 Kazakhmys 2,600 On review 3,298 49.15 RD KMG 18,000 24,895 38.3% 24,843 39.35 Kazkhtelekom 13,200 33,842 156.4% 20,436 48.71 -------------------------------------------------------------------------- Fundamental evaluation IFH RESMI for 12 months (weekly review) ** Target according to the consensus forecast of analysts surveyed by Bloomberg *** Relative strength index - an indicator of technical analysis. determines strength of trend and likelihood of change. Overbought / oversold - when RSI indicator value is closer to 100% / 0%. - Cost of common shares Kazkommertsbank assessment IFD "RESMI" will cost no less than KZT796 per share by the end of 2010; - Halyk Savings Bank of Kazakhstan is estimated IFD "RESMI" as the most promising in terms of business development financial institution in Kazakhstan. Analysts see the growth of the bank's shares up to KZT409 per share; - Shares of Bank CenterCredit in the long term analysts IFD "RESMI" about the outlook for growth in securities of the bank to the level of 1.230 m.; - Stocks of Kazakhtelecom are looking most attractive for investment in the long term. Analysts IFD "RESMI" recommend buying simple shareholders of the issuer. - The updated target price of shares of JSC Exploration Production KMG is KZT24.895 per share. The given material has exclusively information character and is not the offer or recommendation to make any transactions with the stocks. Agency Irbis doesn't take responsibility for the opinions which are in given material. [2010-06-21]