Donetsk Metal Rolling Approves 2.6 Times Charter Fund Increase

At their AGM on September 7, Donetsk Metal Rolling (DMPZ: BUY) shareholders approved a share capital increase by 2.6 times to USD 4.95 mln. Subscription is planned to take place in two stages: Dec. 3, 2007 to Jan. 20, 2008 and Jan. 21 – Jan. 31, 2008. Shareholders agreed to reinvest the company’s 2006 net income of USD 3.8 mln. According to CEO Matvey Lam, the company plans set 2007 targets for net sales of USD 79.2 mln (+27.1% yoy) and net income of roughly USD 5.5 mln (+45.2 yoy). Compared to our forecasts, these figures are 3% and 10% higher, respectively.