Kazakhstani leaders

The company operates through three main segments: Payments Platform, Marketplace Platform and Fintech Platform. The Payments Platform provides digital payment services to consumers and businesses through the Kaspi.kz mobile application. The Marketplace Platform connects sellers with buyers, offering a wide range of products with delivery services and various payment methods. The Fintech Platform provides consumers with financial services, including consumer lending and deposits. The company also owns a 65.41% stake in Hepsiburada in Turkey, which is part of its international expansion strategy.In the first quarter of 2025, Kaspi.kz’s revenue and adjusted earnings exceeded expectations, with revenue increasing by 21% year over year and net income from its Kazakhstan operations rising by 16%. For the quarter ended March 31, 2025, Kaspi.kz reported revenue of KZT 821.851 billion, significantly higher than KZT 552.814 billion recorded during the same period a year earlier. The company reported net income of KZT 275 billion, compared with KZT 178 billion for the same period a year earlier.Excluding certain items, Kaspi.kz demonstrated strong growth across all of its major segments. In the Payments segment, transaction volume increased by 23%, while revenue and net income grew by 16% and 21%, respectively. The Marketplace segment recorded a 36% increase in purchases and a 33% increase in revenue, alongside 20% growth in GMV, supported by the development of Kaspi Delivery, Kaspi Advertising and Classifieds. The e-Grocery business was particularly notable, with GMV increasing by 64%. The Fintech Platform recorded 17% growth in TPV and an 18% increase in revenue.The technology company successfully issued $650 million in eurobonds at a 6.250% coupon to finance its growth in Turkey. The company remains optimistic about its growth prospects and is targeting 15% annual net income growth, excluding Turkey.At the same time, Kaspi.kz’s report included a downward revision to its sales outlook. The company revised its forecast and now expects revenue to grow by 15% in 2025. The company may not pay dividends during the second half of the year. Kaspi.kz also recorded a KZT 6 billion loss related to Hepsiburada. Hepsiburada’s quarterly revenue declined by 8% year over year, while net income decreased by 97%.Forecast: Positive, unlike many other analysts. The rationale includes several factors. First, Kaspi.kz continues to demonstrate sustained growth across all three key business segments — Payments, Marketplace and Fintech. Second, the company maintains a strong position in the Kazakhstan market. Third, Kaspi.kz continues its international expansion. Fourth, its innovative ecosystem and synergies between business segments support the company’s growth potential. Fifth, the company maintains strong financial performance, with net income increasing by 16% and revenue growing by 21%.Key risks include a potential slowdown in the Turkish business and a potential increase in the minimum required reserve ratio for banks in Kazakhstan.

This information does not constitute individual investment advice.

JSC National Atomic Company “Kazatomprom” is Kazakhstan’s national nuclear company, headquartered in Astana, and one of the world’s largest producers of natural uranium. The company’s core business is focused on uranium mining using the in-situ recovery (ISR) method, which is considered more environmentally and economically efficient compared with conventional mining methods. Kazatomprom holds stakes in 26 enterprises, including joint ventures with international partners, and exports its products to more than 10 countries worldwide.Operating results for the first quarter of 2025 showed an increase in production volumes despite a decline in revenue. In Q1 2025, U3O8 production amounted to 5,633 tonnes on a 100% basis, or 2,963 tonnes on a attributable basis, representing an 11% increase compared with the same period of the previous year. Despite higher production, the company’s financial performance was affected by lower uranium prices. Uranium prices declined by 11.4% in the first quarter of 2025, putting pressure on the company’s revenue. Kazatomprom’s shares also declined alongside uranium prices, losing approximately 13.4% of their value during the first quarter of 2025.The company recommended dividends for the 2024 financial year. The total dividend amount was approximately KZT 327.9 billion, corresponding to KZT 1,264.12 per ordinary share. The proposed distribution represented 75% of free cash flow under the company’s dividend policy at the time. The dividend was subsequently approved by shareholders and fully paid in July 2025.Forecast: Positive, unlike many other analysts. Several factors support this view. First, the company demonstrated improved production performance, with U3O8 production increasing by 11% in the first quarter of 2025, indicating solid operational performance. Second, the company’s dividend policy remains an important factor for shareholders, with approximately KZT 327.9 billion distributed for FY2024. Third, the short-term decline in uranium prices may be influenced by changes in supply and demand dynamics. Long-term growth in nuclear energy demand and the expansion of nuclear power generation may support uranium demand over time.The structure of the uranium supply chain is also an important factor, particularly the availability of enrichment capacity and the distinction between natural and enriched uranium markets. Changes in enrichment capacity, geopolitical conditions and global supply chains may affect demand for natural uranium and its price. Changes in sanctions and trade policies concerning Russia could also influence the structure of global uranium supply.One of the key risks for the company is an increase in the tax burden. Kazakhstan’s uranium mineral extraction tax (MET) rate increased from 6% to 9% in 2025. Starting from 2026, a differentiated tax rate based on annual production volumes and the price of natural uranium concentrate was introduced, with the highest rate reaching 18%. Another key risk is uranium price volatility. A prolonged period of lower uranium prices could put pressure on the company’s revenue, cash flow and financial performance.

This information does not constitute individual investment advice.

JSC Halyk Bank of Kazakhstan (Halyk Bank) is the largest universal commercial bank in Kazakhstan, headquartered in Almaty. The Bank provides a full range of banking services, including retail, corporate, SME and investment banking, insurance, leasing, brokerage services and asset management. The Company operates through several key segments: retail banking (serving individuals, mortgage and consumer lending, card products), corporate banking (serving legal entities and financial institutions), SME banking (serving small and medium-sized businesses) and investment banking. Halyk Bank has subsidiaries in Russia, Kyrgyzstan, Tajikistan, Uzbekistan and Georgia. Revenue and adjusted profit demonstrated significant growth in the first quarter of 2025. Halyk Bank’s net interest income for the quarter ended March 31, 2025, increased to KZT 325.8 billion, significantly higher than in the same period of the previous year. The Company reported net income of KZT 275 billion for the first quarter of 2025, representing a 54.5% increase compared with January–March 2024, when net income amounted to KZT 178 billion. The Bank’s assets also demonstrated significant growth. Halyk Bank became the absolute leader among Kazakhstani banks in terms of asset growth, increasing its assets by KZT 3.1 trillion to KZT 18.2 trillion. The loan portfolio also showed substantial growth, strengthening the Bank’s position as the largest lender in the country. The financial institution announced dividend payments on common shares for 2024. The total dividend amount will reach up to KZT 323.5 billion, equivalent to approximately 35% of the Bank’s 2024 net income, which amounted to KZT 921 billion. The Bank also announced the launch of a new USD 1.5 billion bond programme, valid until the end of 2030, under which the issuance of USD 200 million in bonds is planned. Forecast: Positive. Risks: Potential slowdown of business in Turkey. Potential increase in the minimum level of mandatory reserve requirements for banks in Kazakhstan. Positive factors: 1. Impressive financial performance growth — A 54.5% increase in net income and significant growth in net interest income demonstrate the strong performance of the Bank’s business model under current economic conditions. 2. Dominant position in Kazakhstan’s banking market — Halyk Bank is the country’s largest bank, with a market position that provides economies of scale, as reflected in the KZT 3.1 trillion increase in assets. 3. Attractive dividend policy — The distribution of 35% of net income as dividends (KZT 323.5 billion for 2024) makes the Bank’s shares attractive to income-oriented investors. 4. Business diversification and geographical expansion — Presence across various banking segments and expansion into Central Asian and Caucasus countries reduce concentration risks and create new growth opportunities. 5. Strong capitalization and liquidity — The Bank demonstrates a solid financial position, which is particularly important during periods of economic uncertainty, while actively raising financing through bond programmes to support further development. This information does not constitute individual investment advice.