Khartsyzsk Pipe boosts output 2.9x y-o-y in 1H11

Khartsyzsk Pipe (UX: HRTR UK) increased 1H11 pipe production 2.9x y-o-y to 296.9 ths mt, Interfax reported on Friday. In 1H11 Ukraine’s aggregate pipe output increased by 42.3% y-o-y to 11 mln mt. Dnipropetrovsk Pipe (UX: DTRZ UK) and Nyzhnyodniprovsk Pipe (UX: NITR UK) also boosted pipe production by 46.3% y-o-y and 20.1% y-o-y, respectively. Andriy Gerus: this news confirms our positive view on the stock; we reiterate our BUY recommendation with a target price USD 0.31.
 
Pipe production in Ukraine, 1Q11 vs. 1Q10
Company, ths mt                   1H10    1H11  Chg,yoy
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Khartsyzsk Pipe (HRTR)          104.0   296.9     2.9x
Nyzhnyodniprovsk Pipe (NITR) 162.5   195.3      20%
Kominmet (DMZK)                   72.4     88.1      22%
Novomoskovsk Pipe (NVTR)      84.0    107.2      28%
Dnipropetrovsk Pipe (DTRZ)     39.3     57.5      46%
ММК Illicha Steel (MMKI)         43.6     21.4     -51%
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Total                                     775.6   1104.2      42%
Source: Ukrtrudprom