Forecasts and recommendations of analysts of IFH RESMI (Kazakhstan) for December 7, 2010

/IRBIS, December 7, 2010/ - Finance & Investment House RESMI JSC (Almaty, IFH RESMI) provided IRBIS overview of major events and their investment ideas and projections for December 7, 2010. Analysts of IFH RESMI give attention to the following to the important events in the markets: - Russia's largest retailer X5Retail Group acquired the trading network Kopeika for 1.6 billion U.S. dollars. X5Retail Group - the largest Russian retailer by revenue. At the end of the third quarter of 2010, The Company manages 1,630 stores in Moscow, St. Petersburg and other regions of European Russia, the Urals and the Ukraine. The company's network includes 1,232 stores Pyaterochka format "soft discounter", 289 supermarkets "Crossroads", 65 hypermarkets "Roundabout", and 44 shops at home. "Credit rating companies according to Standard & Poors - "BB-". Distribution network Kopeika - Russian network of grocery stores, discounters. At the time of the transaction Kopeika included 660 stores, with a total area of 290 sq m. It is expected that by the end of 2010 the network will have the legal rights of about 700 stores. Credit rating companies according to Standard & Poors - "B-". Given that the acquisition "Kopeika" X5 is the largest sales network in Russia, the Federal Antimonopoly Service issued a pass in the management of third party stores in those municipalities where the proportion of the X5 in the market exceeds 25%. Under the deal, the company X5Retail Group plans to attract a loan from Sberbank of Russia at 30 billion rubles (or 958 million U.S. dollars). In addition to the line of credit Savings retailer uses the limits of existing credit lines. It is expected that upon completion of the transaction and the net debt/EBITDA will be significantly higher than 3, which corresponds to the factor target company and the existing loan covenants. This transaction will enable X5 to strengthen leadership in the Russian retail market. Number of H5 discounters in Moscow and Moscow Region grow by 75% (estimates as at 30 June 2010). Trade area of the company to increase by 25% to 1,400 thousand square meters. m. Retail trade to grow by 20% to 360 billion rubles. (Or 11.5 billion U.S. dollars). EBITDA increased by 16% to 27.7 billion rubles (or 885.2 million U.S. dollars). 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 420 796 89.5% n/a 44.64 Halyk bank 356 409 14.9% 474 54.35 Bank Center Credit 585 1,218 108.2% 1,007 49.68 RD KMG 17,300 24,895 43.9% 22,477 60.18 Kazkhtelekom 17,200 24,398 41.8% 27,611 66.18 -------------------------------------------------------------------------- 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. [2010-12-07]