Turboatom targets UAH 1 bln in 2010E revenue

Turboatom (UX: TATM UK), turbine manufacturer, announced on Friday it targets UAH 1 bln in 2010E revenues (USD 126 mln, up 46% yoy) and UAH 155 mln (USD 19.5 mln) in 2010E net income (15.5% net margin, -3pp down yoy). According to CEO Victor Subbotin, Turboatom`s order book amounted to UAH 2 bln (USD 252 mln) at the start of 2010, and the company is targeting its annual sales growth to UAH 2 bln (USD 252 mln) in 2013. Yegor Samusenko:  Russian Energy Ministry has drafted plans for USD 110 bln CapEx in thermal generation sector in Russia in 2011-20. Given this and taking into account Turboatom’s #2 position among suppliers of turbines in the CIS, we view current Turboatom’s management guidance as quite conservative.