Stakhaniv Ferroalloy sales up 44.3% yoy, EBITDA 3x in 2007

Stakhaniv Ferroalloy (SFER: BUY) posted net revenues of USD 186.1 (+44.3% yoy), EBITDA of USD 37 mln (+3x yoy), net income of USD 18.3 mln (+23x yoy) in 2007. Eugene Cherviachenko: Reported sales are in line with our forecast (2% lower than we projected), while EBITDA and net margins are respectively 5.1 pp and 4.5 pp below our expectations, which we relate to growth in the company’s costs. We confirm our BUY recommendation on the stock.