OREANDA-NEWS. November 3, 2010. Luhanskteplovoz (UX: LTPL UK) plans to deliver 70 diesel locomotive sections to Mongolia in 2011, Interfax reported yesterday. The order will be placed through Transmashholding, and together with orders from RZD, the company is planning to produce 120 diesel locomotive sections in 2011, according to Luhanskteplovoz’ CEO.

Concorde Capital: these plans imply 2.2x higher capacity utilization than in 8M10, latest period the company reported. We note that these orders come from Transmashholding, even though Ukrainian courts recently cancelled its June 2010 privatization of Luhanskteplovoz. We view this order as a strong indicator that Transmashholding is sure it will eventually secure control of Luhanskteplovoz. We think market excessively punished the stock for the court’s annulment of privatization (the stock has fallen 35% since the announcement) and expect a positive reaction to the news.