Reforms, Monetisation and Rerating Ahead: Initiate at Buy

Research evidence excerpt

Reforms, Monetisation and Rerating Ahead: Initiate at Buy

ementation in utilities highlights reform pace: In April, the government announced

plans to introduce RAB (regulated asset base) tariffs in the utilities sector by Sep-26 at the latest,

over a year earlier than expected. This follows electricity/gas tariff hikes since 2024, highlighting

reform momentum. We estimate earlier RAB tariff implementation will boost utilities sector NAV Exhibit 1 - NAV by sector

Telcoby 36% and UzNIF's total NAV by 12%. 14.1% Energy

production

24.7%

IPO execution helps close NAV discount: UzNIF is trading at a 34% discount to our NAV. The Utilities21.8% Financials

government plans to accelerate Uzbekistan Airways' transformation and proceed towards an IPO, Transportation 13.5%

aiming to list 15-20% shares internationally in 2026. UzNIF also plans to list its largest portfolio . 26.0%

Source: Jefferies

companies through 2028, which together represent c70% of its NAV on our estimates. Based on NAV estimates by Jefferies

Tariff reforms in Railways Infrastructure could also be a key positive: This business currently

Naresh Narendra Bilandani * | Equity Analyst

operates under a legacy 10-01 tariff system, and its margins are among the lowest vs peers. Its NAV +971 4 231 6013 | nbilandani@jefferies.com

is sensitive to tariff increases and, per UzNIF, a 2% tariff hike could see the company's NAV increase

Prateek Bhatnagar * | Equity Analyst

by 74%, and UzNIF's overall NAV by 10%. While tariff reforms in the utilities sector are encouraging, +971 4 231 6019 | pbhatnagar@jefferies.com

we await clarity on the pace and quantum of reforms in Railways Infrastructure. Hence, we do not

Matthew Hose ^ | Equity Analyst

incorporate any potential changes to NAV post tariff reform.