Luhanskteplovoz Sales on the Rise Since Privatization

Luhanskteplovoz (LTPL: U/R) General Director Viktor Bikadyrov said that the company is targeting 30-40% yoy sales growth in 2007. According to a company press release, sales reached USD 38.6 mln in 8M07 with the last two months accounting for USD 31.7 mln or 82% of that amount. The company expects sales to rise in the month of September to about USD 20 mln. Inna Perepelytsya: We view the management’s sales projections as conservative. We remain optimistic on the company’s future and believe it will continue increasing sales each month through the end of the year. Our forecast for top line growth is 88% yoy in 2007. In light of the stock’s price appreciation (156.5% since privatization), which has already overrun our 12M target, we place it Under Review.