Motor Sich reports 49% yoy EBITDA increase in 1H12

Motor Sich (MSICH UK) boosted its EBITDA 49% yoy to USD 168 mln in 1H12, the company reported in financials yesterday. Revenue grew 29% yoy to USD 387 mln, while its EBITDA margin increased 5.9 pp to 43.3% in 1H12. Net income grew 23% yoy to USD 109 mln for the period.

Roman Dmytrenko: Despite a 29% yoy revenue increase in 1H12, Motor Sich demonstrated a slowdown in growth on a quarterly basis. Revenues rose just 3% qoq in 2Q12, which in our view was mainly attributed to a high comparison base: the execution of a USD 25 mln order carried over from 2011 into 1Q12. We estimate the company will generate USD 870 mln in revenues (19% yoy increase) in 2012. We believe the market will reward the company’s solid financial performance, considering it currently trades at just 2.96x 12M trailing P/E.