Bogdan increases automobile output by 22% y-o-y in 7M11

Bogdan Motors (UX: LUAZ UK) made 11,839 automobiles in 7M11, up 21.8% y-o-y, Interfax reported yesterday. The company produced 11,498 passenger cars in 7M11, up 27.3% y-o-y; 295 commercial cars, down twofold y-o-y; 27 buses, down 3.7x y-o-y; and 19 trolleybuses, up 9.5x y-o-y. The automaker’s July 2011 output was 1,926 automobiles, down 6.7% y-o-y. Vitaly Gorovoy: We attribute the y-o-y drop in output to the company having stopped production in January 2011 for planned maintenance. The company’s 7M11 output figure is below our production of 30,000 automobiles in 2011E; we plan to review our DCF model in the near future. In the meantime, we place our recommendation and target price for the stock Under Review.