Forecasts and recommendations of analysts of IFH RESMI (Kazakhstan) for November 30, 2010

/IRBIS, November 30, 2010/ - Finance & Investment House RESMI JSC (Almaty, IFH RESMI) provided IRBIS overview of major events and their investment ideas and projections for November 30, 2010. Analysts of IFH RESMI give attention to the following to the important events in the markets: - JSC Kazakhtelecom announced the results for the third quarter of 2010. According to the financial statements of the company's net profit increased by 56% compared to the same quarter in 2009. Such an increase in profit was made possible through the company's revenue growth (+3%), reducing implementation costs (-5%), income from financing (+44%). Significant role in the growth of profits has played reduce other expenses by more than 100%. IFD "RESMI" believes the bulk of this paper accounts for exchange rate differences. Proportion of profits being accounted for under the equity method, which reflects the share of the profits Kazakhtelecom to LLP "GSM Kazakhstan JSC" Kazakhtelecom, up 26%. According to the results of operations for the third quarter of 2010, the increase cost of services rendered (+10 %) and an increase in administrative expenses (+11%). Financing costs increased in proportion to the revenue funding. Total assets Kazakhtelecom remained at the level of the third quarter of 2009, noted that the reduction in short-term assets was due to the exclusion of assets held for sale (LLP, MTS was sold in early 2010) and reducing the financial investment. At the same time, the funds have grown by almost 70% had a positive impact on liquidity. Total liabilities decreased by 20%. Short-term liabilities decreased due to repayment of financial obligations maturity which was in 2010 (November 30, 2009 Kazakhtelecom implemented repay a syndicated loan of $ 350 million, organized by "Citibank NA"). Long-term liabilities increased by issuing 10 year bonds worth KZT45.5 bln. Capital rose 16% due to retained earnings. Based on the results Kazakhtelecom for the third quarter of 2010 IFD "RESMI" assesses the financial situation as stable. The structure of the balance sheet has improved, the debt burden has declined. In addition, the company has to sell distressed assets (LLP "MTS"). Net income shows a positive trend. However, as indicated, companies need to tighten control over expenditures. In the case of maintaining the momentum of growth of the company's expenses, profitability may decline. Analysts of IFD "RESMI" recommend buy/hold shares Kazakhtelecom. According to forecasts of IFD "RESMI" target value per share is KZT24,398, or an increase of 41%. 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 437 796 82.2% n/a 51.67 Halyk bank 342 409 19.6% 408 48.82 Bank Center Credit 590 1,218 106.4% 1,007 53.92 RD KMG 17,390 24,895 43.2% 22,525 63.38 Kazkhtelekom 17,300 24,398 41.0% 27,611 72.27 -------------------------------------------------------------------------- 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. [2010-11-30]