Motor Sich’s 2010 EPS exceeds expectations by 50%

Motor Sich (UX: MSICH UK), a leading helicopter and aviation engine producer based in Ukraine, reported a UAH 1,249 mln in net income for 2010, up 69% y-o-y, according to figures published in an AGM announcement (to be held March 24) released yesterday. Yegor Samusenko: The figure was 53% higher than our expectations and 49% above the consensus forecast. Though the company has not reported its top line figure, net margin should be in the 26-28% range for 2010, improving on a 22% net margin posted in 1Q10-3Q10. However, we note that the company could reports its orders discretionary due to the high size of the orders and therefore we do not revise our forecasts for the future and target of USD 509 per share.