Zaporizhtransformator Sales Up 2x in 2007 yoy

Zaporizhtransformator’s (ZATR: HOLD) sales surged 101% yoy to USD 412 mln in 2007, according to Ukrainian News. The company’s increased production by 96% yoy to USD 395 mln in 2007. Zaporizhtransformator’s net margin of 20% was twice more than we forecasted. The high-voltage transformer manufacturer announced plans to increase output by 95% yoy in 2008 (74% more than we forecasted). Inna Perepelytsya: Due to favorable markets, the company is realizing its investment program faster than we expected, helping Zaporizhtransformator to increase sales 10% more than we expected in 2007. We are currently reviewing our forecasts. We call your attention to that fact that there is a limited offer of shares on the market, which we attribute to majority shareholder Konstantin Grigorishyn concentrating most free float (see our October 10 Power Engineering report).