Motor Sich reports 2012 bottom line 19% lower than preliminary results

Motor Sich (MSICH UK) reported UAH 1.62 bln net income under IFRS for 2012 vs. UAH 1.34 under UAS in 2011, according to the company’s full-year financials approved at its AGM on March 28. Revenue reached UAH 6.97 bln vs. UAH 5.79 under UAS in 2011. The company also cut its DPS 60% yoy to UAH 10, implying a dividend yield of 0.4%.

Roman Dmytrenko: We are disappointed by the company’s reported bottom line, which turned out to be 19% lower than preliminary number published just a month ago in Motor Sich’s AGM announcement. Even despite the profit adjustment, Motor Sich remains one the fastest-growing and most profitable aerospace companies in the world. Therefore, we believe the 2012 P/E multiple of 2.9x, at which Motor Sich shares are trading, is not justified given its global peers trade at a multiple of 14.0x.