Forecasts and recommendations of analysts of IFH RESMI (Kazakhstan) for July 22, 2010
22.07.10 18:13
/IRBIS, July 22, 2010/ - Finance & Investment House RESMI JSC
(Almaty, IFH RESMI) provided IRBIS overview of major events and
their investment ideas and projections for July 22, 2010.
Analysts of IFH RESMI are paying attention to investors on the
following important events in the markets now:
- The oil giants, Exxon Mobil Corp, Chevron Corp,
ConocoPhillips and Shell Oil announced plans to establish a
rapid response system to prevent possible future incidents of
oil production on offshore platforms. The four companies are
planning to spend about $ 1 billion to develop a system that will
be able to respond within 24 hours, working at a depth of 3000
meters and are able to utilize up to 100,000 barrels per day.
- Yesterday, Coca-Cola Co. published its financial results for
the second quarter of 2010. The company earned during the
second quarter increased 18% due to increase in sales,
exceeding analysts' forecasts. Net profit of Coca-Cola for the
three months to July 2 totaled $ 2.4 billion, or $ 1.02 per share,
versus $ 2.0 billion, or $ 0.88 per share, a year earlier. Operating
revenues increased by 5% to $ 8.7 billion in total sales of
beverage Diet Coke, Sprite and Fanta grew by 5% due to growth
in almost all major markets of the company. Sales in the
countries of Eurasia and Africa showed the biggest growth, about
10%, while in Europe, volumes declined by 1%. The increase in
sales of Coca-Cola also launched contributed to the World Cup
soccer marketing campaign and the growing popularity of sports
drinks such as Powerade. In North America, in the second
quarter of 2010 Coca-Cola Co. managed to overtake its main
rival PepsiCo in sales of drinks. In connection with the weakening
purchasing power, the rivalry between the two brands worsened
again.
- According to the press service of the Ministry of Finance
(MOF), the Republic of Kazakhstan, at a meeting of the
Economic Policy of the Government of 03 July this year, it
was decided to inappropriate release of sovereign bonds of
the Republic of Kazakhstan in 2010. This year, Kazakhstan
needs to attract KZT1,064.4 billion in order to finance the budget
deficit, as well as the repayment term GS treatment which
expires this year. The main instrument for borrowing is domestic
government securities, which amount to about 60% of necessary
funds. In addition, Kazakhstan has attracted two loans totaling $
2 billion from the International Bank for Reconstruction and
Development (IBRD) ($ 1 billion) and World Bank ($ 1 billion).
However, it remains questionable how the rest will be financed by
KZT126.4 billion. Originally scheduled for release Eurobonds in $
500-700 million in connection with the fact that the MP RK
abandoned the idea of placing Eurobonds, analysts of IFD
"RESMI" believe that the Government expects to reduce the
deficit. According to IFD "RESMI", Eurobonds could serve as a
benchmark for debt securities of corporate sector and provide the
impetus to reduce their profitability. Consequently, funding for
Kazakh corporate sector would be cheaper.
- Net income margin Kazakhtelecom for the first half of 2010
was at the level of 2007. At a press conference with members of
the Board of Kazakhtelecom devoted to launching a corporate
block and wrap-up for the first half of 2010 were announced
some results of the Company for the first half. Consolidated
revenues from sales of services for 6 months in 2010 according
to preliminary data of KZT75,956 million, the consolidated net
profit - KZT20,635 million. Revenues for the first half consistent
with our predictions. The costs of the company were lower than
we predicted. Based on the figures in the report, analysts IFD
"RESMI" believe that it can be concluded that the company
reduces costs. Net income margin Kazakhtelecom for the first 6
months of this year was at the level of about 27%, which
corresponds to the level of 2007. Given a stable financial
condition of the issuer, as well as growth potential, analysts of
IFD "RESMI" retain a recommendation on the shares of
Kazakhtelecom "buy".
Analysts of IFH RESMI give the following advice for investors in
securities of issuers in Kazakhstan:
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Issuer Last price Predicted price* Up/down from Target RSI.
Current price price** %***
------------------ ---------- ---------------- ------------- ------- -----
Kazkommertsbak 372 796 114.0% 490 33.70
Halyk bank 315 409 29.8% 394 54.00
Bank Center Credit 520 1,218 134.2% 1,023 37.38
ENRC 1,980 On review 2,770 42.16
Kazakhmys 2,260 On review 3,158 38.75
RD KMG 16,950 24,895 46.9% 24,583 40.35
Kazkhtelekom 14,600 33,842 131.8% 20,436 56.85
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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.
[2010-07-22]