Kaspi.kz AO

Joint Stock Company Kaspi.kz, together with its subsidiaries, provides payments, marketplace, and fintech solutions for consumers and merchants in Kazakhstan, Azerbaijan, and Ukraine. It operates in three segments: Payments, Marketplace, and Fintech.

• Strong Revenue Growth- Strong revenue growth indicates a company’s increasing sales and market expansion, often driven by effective marketing, product innovation, or expanding customer base.

• It reflects positively on the company's financial health and its ability to generate higher income, which can attract investors and enhance competitive positioning. However, sustained growth should also be evaluated alongside profitability and operational efficiency to ensure long-term success.

• Revenue- KSPI's first-quarter results were roughly in line with forecasts, with revenue up 21% and net income up 16% year on year, with strong growth in payments (+16% revenue, +21% net income), marketplace (+33% revenue, +19% net income), and fintech (+18% revenue, +8%). 

• GMV Growth- The guidance for 2025 has been revised: GMV growth is now forecast at 15-20% (down from 25-30%) due to temporary smartphone registration regulations in Kazakhstan (affecting ~7 percentage points of e-commerce GMV growth) and greater macro uncertainty. TFE growth is guided to the lower end of 15-20%.

• Interest Rate- The high interest rate environment is a near-term headwind, driving increasing deposit costs (new products at 17-18% rates) and compressing margins; however, management anticipates this to become a medium-term tailwind as rates normalize; funding costs are forecast to climb by 100-150 basis points in 2025.

Acrobull UK Recommendation Based on Evaluation