DMK Dzerzhinskogo Steel Raises Net Revenue 37.3% yoy, EBITDA 15.2% in 2007

DMK Dzerzhinskogo Steel (DMKD: BUY) ended 2007 with sales of USD 1.6 bln (+37.3% yoy) and EBITDA of USD 171 mln (+15.2% yoy). Net income grew 19.9% yoy to USD 106.7 mln. Andriy Gerus: DMK Dzerzhinskogo Steel’s reported 2007 EBITDA margin of 10.7% missed our expectation (13.5%). Sales are 5.3% higher than our projection (USD 1.52 bln). Given favorable steel market and the company’s ongoing modernization we reiterate our BUY recommendation on the stock.