Kazakh Banks: The Almaty alchemy (initiating on Halyk Savings Bank and Kaspi.kz with BUYs)
We initiate on two prominent Kazakh banking names in this report and rate them both BUYs. Kaspi marries e-commerce and financial services: the Kaspi super app is a powerful platform that has ingrained itself in daily life in Kazakhstan (9m MAU) and its flywheel is turning fast. Kaspi can also cast its net wider in B2B products and, potentially, expand regionally. Although the stock rallied following the IPO, we still do not see it as expensive, and we initiate coverage with a BUY (and a price target (PT) of USD 85.6/share, 14.2x P/E and 12.1x P/BV on our 2021E). We also believe that Halyk’s valuation is undemanding compared to what it offers: a 25% ROE, a 24% CET1, a 12% dividend yield and a liquid balance sheet, which has one of the lowest leverage ratios in emerging Europe. The stock offers a 12% yield and, in our view, the valuation can tolerate a wide margin of error. We rate Halyk a BUY (PT USD 19.6/share, 4.5x P/E and 1.1x P/TBV on our 2021E).
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.