Report
Andrey Kuznetsov ...
  • Andrey Gromadin
  • Anton Stroutchenevski
  • Artem Vinogradov
  • Cole Akeson
  • Fedor Kornachev
  • Georgiy Ivanin
  • Lyudmila Melnikova
  • Mikhail Krasnoperov
  • Research Team
  • Sergey Donskoy

CIS Market Daily - October 26, 2021

MARKET COMMENT - RUSSIA SURGES ON CYCLICAL APPETITES, STILL CONSERVATIVE VALUATIONGlobal stock markets returned to growth, the MSCI ACWI edging up 0.3%. Cyclicals were in favor, though US tech also fared well, and defensive stocks were in the rear globally. The RTS soared 2.2% to a new 10-year high of 1,920, Russia benefiting from global appetites for cyclicals, rising EPS estimates and still-conservative valuations. APAC markets are mixed on China concerns today, while EMEA, US and Russia indicators are mostly positive.STORIES> Novatek accelerates share buybacks> Novatek 3Q21 preview: Strong update expected> MMK 3Q21 IFRS review: In-line results, market not impressed> Ozon 3Q21 IFRS preview> Rusagro's revenues expand 43% y-o-y to R57.2 bln in 3Q21> Lenta reports decent 3Q21 results due to M&A> Enel Russia 3Q21 IFRS results preview> NBK hikes rate by 25 bps to 9.75%; more likely to follow this year
Underlyings
Enel Russia

PJSC Enel Russia is a wholesale generation company in Russia. Co.'s main areas of operation are production of power and heat, supply (sale) of power and heat, receipt (purchase) of power and heat from the wholesale power (capacity) market. Co. is active in four production branches around Russia: in the Ural region - Reftinskaya GRES, Sredneuralskaya GRES, in the northern Caucasus - Nevinnomysskaya GRES, and in Central Russia - Konakovskaya GRES. Co.'s aggregate installed capacity is 9,677 MW for power and 2,382 GCal/h for heat. Co. provides power and heat to both industrial enterprises and household consumers via local power distribution networks.

Lenta International PJSC

Lenta is a hypermarket group based in Russia. Co. operates 87 hypermarkets in 50 cities across Russia and 16 supermarkets in the Moscow region with a total of approximately 571,328 sq.m. of selling space. Co. also operates four distribution centers for hypermarkets and one for supermarkets. operates three hypermarket formats: Standard, typically with approximately 7,000 sq. m. of selling space (smaller than many Western European hypermarkets) and 24,000 stock keeping unit (SKUs); Compact, typically with approximately 5,000 sq. m. of selling space and 20,300 SKUs; and Supercompact, typically with approximately 3,000 sq. m. of selling space and 15,000 SKUs.

Magnitogorsk Iron & Steel Works (GDR)

Magnitogorsk Iron & Steel Works PJSC

Magnitogorskiy Metallurgicheskiy Kombinat PAO, formerly Magnitogorskiy metallurgicheskiy kombinat OAO, is a Russia-based company, active in the steel industry. Its main products are sinter, coke, iron, crude steel, rolled products and ore materials. The Company offers a wide range of products such as wire rod, rebars, square bars, strips, round bars, among others. It is also involved in the coal ore mining, processing of ore materials, sale of ferrous metal products and others. Magnitogorskiy metallurgicheskiy kombinat OAO operates as a supplier for such industries as: pipelines, vehicles, railway, construction and shipbuilding, among others. Its subsidiaries include Lys'venskaya Metallurgicheskaya Kompaniya OOO, among others. The Company operates domestically, as well as exports its products to the Commonwealth of Independent States (CIS) countries, Asia, the Middle East and Europe.

NOVATEK JSC

Novatek is an independent gas producer and natural gas producer in Russia. Co. is engaged in the exploration, production, and processing of natural gas and liquid hydrocarbons. Co.'s upstream activities are concentrated in the Yamal-Nenets region, which is a natural gas producing area and accounts for a significant part of Russia's natural gas production. Co.'s three core fields are located in the regions of Yurkharovskoye, East Tarkosalinskoye and Khancheyskoye. Co. maintains natural gas reserves of approximately 1,144 bcm. Co.'s total net proved reserves totals around 8,088 million barrels of oil equivalent (boe).

NOVATEK JSC Sponsored GDR RegS

Ozon Holdings

Ros Agro PLC

Ros Agro, through its subsidiaries, is engaged in agricultural production, cultivation of pigs, processing of raw sugar and production of sugar from sugarbeet, vegetable oil production and processing. Co. and its subsidiaries are organised on the basis of four segments: Sugar, which is engaged in the production and trading operation with white sugar; Meat, which is engaged in the cultivation of pigs and selling of consumable livestock to third parties; Other agriculture, which is engaged in the cultivation of plant crops and dairy cattle livestock; as well as Oil, which is engaged in vegetable oil extraction, production and sales of mayonnaise, consumer margarine, and bottled vegetable oil.

Provider
Sberbank
Sberbank

​Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.

Analysts
Andrey Kuznetsov

Andrey Gromadin

Anton Stroutchenevski

Artem Vinogradov

Cole Akeson

Fedor Kornachev

Georgiy Ivanin

Lyudmila Melnikova

Mikhail Krasnoperov

Research Team

Sergey Donskoy

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