12 October 2010 SI NE I RA ET STUDI O/ OBJECTI VELY

Top 10 Economy Preview

TOP–10, October 2010

Focus on the companies

targeting the domestic market
We have the pleasure of bringing to your notice a monthly list of securities of greatest interest for buying.
Current Target
price, price, Growth
share USD USD potential, % Investment idea
Surgutneftegas – Defensive company thanks to its cash position of nearly
preferred USD 20bn, dividend income in 2010 may amount to 10%.
SNGSP RU Equity 0.51 0.71 40%
The current discount to ordinaries is 1.5 times above the
historical average.
LUKOIL Wise development strategy (gas, refining). The cheapest
LKOH RU Equity Russian oil company.
58.1 87.6 51%

IDGC Holding The company's stocks are fundamentally attractive and

MRKH RU Equity 0.155 0.22 42% likely to be included in MSCI index, which could
promote growth.
Kuzbassrazrezugol Strong position in the thermal coal market and outlook of
KZRU RU Equity 0.3 0.8 121% growing financial indicators. Fundamental
undervaluation.
Kovrov Mechanical Development of the nuclear industry will drive the
Plant 86 117 36% growth of demand for gas centrifuges required for
KVMZ RU Equity uranium enrichment.
Aeroflot Strong operational results, cost management, benefits
AFLT RU Equity 2.21 3.1 40% from the removal of import duties on foreign aircrafts.

NCSP Arrival of Transneft and ban on grain export resulted in

NMTP RU Equity 0.126 0.195 55% excessive sales of the company's stock.

LSR Group Diversified business model (vertically integrated). Low

LSRG RU Equity debt burden. Improved operational indicators amid
27.35 42 54% growing demand for working-class housing. Positive
price trend for residential housing since early this year.
Leading positions in the region.
Pharmstandard Leading positions in the pharma market, high
PHST RU Equity operational indicators and stable cash flows. The
80.85 100 24% company is planning to expand its pharma portfolio
through acquisitions of promising drugs in Russia and
CIS, as well as through R&D investments.
Cherkizovo Group Strong financial performance, expansion of pork
GCHE RU Equity production capacity, improved operational indicators of
28 34.7 24%
meat processing.

*As of 11 October, 2010

 TOP-10, OCTOBER 2010 12 October, 2010

OOO Grandis Capital Investment Company

6 Puteisky Tupik, Moscow, 105064

tel.: +7 495 287 44 07, fax: +7 (495) 287 44 07
www.grandiscapital.ru, info@grandiscapital.ru

Financial Markets

Mikhail Kozakov
Director of the Department
M.Kozakov@grandiscapital.ru
Sales Division Analytics Division
Anton Makarov Denis Barabanov
Deputy Head of the Department Head of the Division
Head of the Sales Division D.Barabanov@grandiscapital.ru
A.Makarov@grandiscapital.ru

Dmitry Shatsky Timur Khairullin, CFA

Head of the Sales Division Deputy Head of the Division
D.Shatskiy@grandiscapital.ru T.Khairullin@grandiscapital.ru

Konstantin Lynov Irina Prokopieva

Leading expert, Sales Division Analyst
K.Lynov@grandiscapital.ru I.Prokopeva@grandiscapital.ru
Customer Relations Division
Denis Vakhrushev
Leading expert, Sales Division Ekaterina Kharchenko
D.Vachrushev@grandiscapital.ru Head of the Customer Relations Division
E.Kharchenko@grandiscapital.ru

Portfolio Investments Division Exchange Operations Division

Dmitry Ivanov Maxim Bersenev
Head of the Portfolio Investments Division Head of the Exchange Operations Division
D.Ivanov@grandiscapital.ru M.Bersenev@grandiscapital.ru

Andrey Tolstousov Mikhail Kan

Asset Manager Senior Trader
Portfolio Investments Division m.kan@grandiscapital.ru
A.Tolstousov@grandiscapital.ru

License for dealing operations of a professional securities market participant

Number: 077-11120-010000 (unlimited) Issued by: FSFM of the Russian Federation, Issue date: 01.04.2008

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Number: 077-11124-001000 (unlimited) Issued by: FSFM of the Russian Federation, Issue date: 01.04.2008

License for brokerage of a professional securities market participant

Number: 077-11116-100000 (unlimited) Issued by: FSFM of the Russian Federation, Issue date: 01.04.2008

License for depositary operations of a professional securities market participant

Number: 077-11128-000100 (unlimited) Issued by: FSFM of the Russian Federation, Issue date: 01.04.2008

License of a futures and options commission merchant in the exchange trade

Number: 1249 (unlimited) Issued by: FSFM of the Russian Federation, Issue date: 04.09.2008

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partial default of the issuer (the enterprise's refusal to service its debts). In case of a default or bankruptcy of the issuer, losses may amount to 100% of the investment. Investments in stock may result in losses due to reduced market value of the
stock. Owing to the bankruptcy of the issuer, losses may amount to 100% of the investment. Investments in derivatives (futures or options) may result in losses. Losses may stem from changes in the market value of the underlying asset.
Losses may amount to 100% of the investment (margin).
Additional information may be requested. This overview was produced for information purposes only and should not be regarded as an incentive to buy or sell securities. To prepare the overview, Grandis Capital used sources assumed to
be reliable. However, neither the management, nor personnel can guarantee accuracy of these data and can be held liable for possible losses of investors connected with the information contained herein. Remuneration of analysts does not
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