Motor Sich increases revenues by 18% y-o-y in 1H11

Motor Sich (UX: MSICH UK) increased revenues by 17.6% y-o-y to UAH 2,342 mln (USD 294 mln) in 1H11, according to media reports this week, citing company CEO Vyacheslav Boguslayev. According to Boguslayev, Motor Sich plans to supply 250 AI-222 engines for China’s L-15 aircraft over the next three years (vs. our expectations of the similar size order over five years). Concorde Capital: Motor Sich’s revenue growth is in line with our expectation of 22% growth this year. We note the company’s revenues in the second half of the year are usually larger than in the first half of each year.