Dniprometiz to invest USD 27.4 mln on modernization, no dividends

Dniprometiz (DMPO: BUY) intends to spend USD 27.4 mln on modernization by 2013, the company CEO Dmitriy Sergeev said yesterday at the press-conference. The company released its 1Q08 net income of USD 2.2 mln (+2.8x yoy). Dniprometiz shareholders also voted at their AGM on May 16 to reinvest 2007 net profit of USD 3.3 mln. Eugene Cherviachenko: Severstal-Metiz, the new owner of Dniprometiz adjusted planned CapEx as of 2007 year beginning, which comprised USD 10 mln. We retain our BUY recommendation on the stock.