Enakievo Steel’s PBT Up 34.2% yoy in 2007
7 February 2008
According to Ukrainian News, Enakievo Steel’s (ENMZ: BUY) profit before tax surged 34.2% yoy to USD 41.6 mln in 2007. The company’s sales rose 46.5% yoy to USD 1.02 bln. In other news, Enakievo Steel’s CEO Alexander Podkoritov said that the company is considering merging with Metalen; though, the timeline for such a move is still unclear. Eugene Cherviachenko: The reported sales numbers exceeded our forecast by 10.3%. However, implied net income (USD 31.2 mln) is 32.1% lower than we projected, which may be a result of tax optimization schemes employed by the company. We consider the merger to be a strong catalyst and keep our bullish view on the stock.
