Electricity Generation and Distribution
October 26, 2011
CentrEnergo released its 3Q11 financials on Tuesday (Oct 25) after the close of trading. According to the report, the company’s net profit for the quarter jumped to UAH 361mn (USD 45mn), compared to just UAH 9mn in 3Q10. Net revenue rose 33% YoY to UAH 2.0bn and EBITDA surged 4.2x YoY to UAH 409mn in the period. With this note, we revise our forecast for CentrEnergo’s FY11 net profit from USD 1mn to USD 80mn due to the company’s sound financial performance in 3Q11. We reiterate our BUY recommendation for the CEEN stock with a target price of UAH 20.8 (USD 2.60) per share, implying an upside of 160%.
