Bogdan Motors increases net revenues by 2.4x y-o-y in 1H11

Bogdan Motors’ (UX: LUAZ UK) net revenues rose by 2.4x y-o-y to UAH 1.6 bln in 1H11, while its net loss climbed by 2.2x y-o-y to UAH 240.1 mln, Interfax reported yesterday. The company’s gross profit grew tenfold y-o-y to UAH 269.0 mln. Vitaly Gorovoy: The significant increase in net revenues and gross profit confirms our bullish view on the stock. We forecast Bogdan’s 2011E revenues at USD 703 mln, a threefold boost y-o-y, mainly due to the consolidation of Hyundai Motors’ car sales in Ukraine. We expect the company to improve profitability in 2H11 due to the completion of an additional share issue and restructuring part of its debt.