Motor Sich Posts Strong 1H07 Results

Motor Sich (MSICH: BUY) increased sales to USD 139 mln (+72.2% yoy), net income to USD 24.1 mln (from USD 0.5 mln in 1H06), and EBITDA to USD 39.6 mln (from USD 11.4 mln in 1H06); posting margins growth: EBITDA to 28.4% (from 14.1% in 1H06) and net margin to 17.3% (from 0.6% in 1H06). In related news, Motor Sich announced it has submitted documents for the creation of Motor-Bank. In September 2006, the Antimonopoly Committee allowed related companies Garant Invest, Motor Sich, and Motor-Garant to create the bank. Inna Perepelytsya: Motor Sich followed up the 2H06 with another impressive reporting period in 1H07. Its announced revenues beat management forecasts and are in line with our full-year forecasts (see our report from July 26).