Zaporizhtranformator Increases 2007 Net Income 3.5x yoy

15 January 2008
According to Interfax, Zaporizhtranformator (ZATR: HOLD) increased net income by 3.5 times yoy to UAH 399 mln (USD 79 mln) in 2007. Inna Perepelytsya: This is 64.3% more than we forecasted. The press release does not provide the company's 2007 revenues. We estimate Zaporizhtransformator’s net margin for 2007 at 21%: the highest since its privatization and three to nine times more than its global peers. We relate this to high demand for transformers in the CIS. Preparation of ZATR shares placement is also possible. We will review our target price and recommendation for ZATR after the company’s official financials are published.