OREANDA-NEWS. October 12, 2009. Motor Sich (MSICH) CEO Vyacheslav Boguslayev said that the company is targeting net income of UAH 250-260 mln (USD 30-31 mln) in 2009, Interfax reported, citing a press conference on Saturday. Boguslayev said production is expected to increase 17-18% yoy this year, and by 40% yoy in 2010. Boguslayev also said that his company expects to earn USD 200 mln from a soon-to-be signed contract with the Indian armed forces for aircraft maintenance. Boguslayev said the contract would have a four-year term.

Concorde Capital: The forecast by Motor Sich's CEO corresponds to the projections from our July 31 note. We expect Motor Sich to post net income of USD 31 mln this year (margin of 8.1%, up 7.9 pp yoy). In terms of the Indian contract, India and Ukraine signed preliminary documents to repair An-32 airplanes in June 2009. Previous news reports stated that Motor Sich would receive only USD 150 mln in revenue from the deal, vs. the USD 200 mln Motor Sich's CEO now says it would get. We expect a moderately positive effect of the news on the stock and retain our target price of USD 175 per share.

Concorde Capital is a full service investment bank operating on the Ukrainian, Russian and CIS markets. In 2007 Concorde Capital’s analytical team was recognized as the Top Team covering Ukraine by Thomson Extel's Pan European Survey. Senior Analyst Alexander Paraschiy was recognized as the Leading Pan-European Investment Analyst – European Emerging Markets. Concorde Capital is a leader when it comes to private placements and M&A deals. Concorde Capital’s sale of a stake in Electron Bank to Volksbank International AG was named the Best Ukrainian M&A deal of the year 2007 by the Adam Smith Institute.