Motor Sich reports UAH 2 bln bottom line

Motor Sich (MSICH UK) reported its IFRS-based, 2012 bottom line of UAH 2.0 bln, according to a Feb. 22 release announcing its AGM.

Roman Dmytrenko: The company’s preliminary income result is in line with the consensus while above our estimate. The result was hard to predict since this is the first time Motor Sich is providing an IFRS-based bottom line. The figure implies Motor Sich is currently trading at just 2.6 times P/E 2012 vs. 10.7 for its global peers.

We expect detailed 2012 financials to be presented at the March 28 AGM. The agenda includes voting on changes to the company’s supervisory board, an item that was absent in last year’s AGM.

We are also looking forward to the AGM revealing whether the current CEO retains full control of the supervisory board. A Panama-based company, AT Business House Helena AG, acquired 7.91% of Motor Sich’s shares on Feb. 14 to raise its stake to 17.31% and we believe the AGM voting will show whether this is an insider or a new investor.