Kryukiv Wagon gets UAH 400 mln order from Donetsk Railways

Kryukiv Wagon (UX: KVBZ UK) signed a UAH 400 mln contract with Donetsk Railways (part of Ukrzaliznytsya, Ukraine’s state railway transport monopoly) for two interregional electric passenger trains, RZD-Partner reported on Friday. The contract must be executed by June 2012. Vitaly Gorovoy: This contract is surprise to us and confirms our bullish view on Kryukiv Wagon shares. The manufacturing of passenger railcars is a strategic goal for Kryukiv. Freight railcars remain the company’s cash cow. We projected Kryukiv Wagon to record USD 0.9 bln in revenues in 2011-19E from sales of passenger railcars in our DCF-model (14% of total revenues in 2011-19E).