Motor Sich net profit surges 63% yoy in 9M12

Motor Sich (MSICH UK) increased its net profit 63.5% yoy to UAH 1.4 bln, the company reported in financial statements according to local accounting standards yesterday. Sales grew 27.8% yoy to UAH 5.0 bln in 9M12. EBITDA increased 45.2% yoy to UAH 2.2 bln for the period, with the EBITDA margin rising 5 pp to 43% in 9M12.

Roman Dmytrenko: Though new engine sales remain the main contributor to the company’s revenues, its engine repairs and maintenance revenue surged 51.7% yoy to UAH 0.9 bln, driven by the company’s investments into the Orsha and Vinnitsa Aircraft Overhaul Plants. Overall, we expect the company’s sales will increase 19% yoy to UAH 6.9 bln in 2012 and net income will reach UAH 1.9 bln (up 45% yoy). With P/E 2012E of 1.9x, the company trades at a 70%-85% discount to international aerospace companies.