OREANDA-NEWS. April 16, 2010. Myronivsky Hliboproduct (AIM: MHPC LI) Head of Investor Relations Anastasia Sobotyuk said yesterday that the company is planning to spend USD 60 mln on investments in 2010, about 50% of which will be used to expand its retail chain. Sobotyuk said about USD 15-20 mln would be spent build its new plant in Vinnitsa and the remainder, about USD 10-15 mln increase its land bank.

Concorde Capital: We see the announced 65% yoy decrease in MHP’s CapEx, from USD 171 mln last year to just USD 60 mln in 2010 as neutral for the stock. This year the company does not plan to launch any significant projects, and its Vinnitsa poultry plant should enter its active construction phase only in 2011, with its first stage planned to commence operations in 2013. We would also highlight the company’s plans to spend up to USD 15 mln or 25% of 2010 capital expenditures on land bank expansion. Based on our estimates, this should allow MHP to grow its current acreage by 27% yoy from 185 ths to 235 ths (assuming an average acquisition cost of USD 300/ha), which should contribute an additional USD 45 mln or 5% to MHP’s top line forecast in 2010.