Machinery
March 28, 2011
Motor Sich: Outperformance Continues to Drive Value - Motor Sich is targeting a rise in its revenue of 22.6% in 2011 to USD 767mn, management announced at a shareholder meeting on Mar 24. We believe the company will be able to reach its sales goals thanks mainly to existing and in-the-pipeline contracts for engine deliveries to Russia and China. Motor Sich reported forecast-busting FY10 revenue of USD 631mn (+31% YoY) and net profit of USD 158mn (+66% YoY). We revise our model to incorporate the company’s rosy outlook for net revenue growth and profitability. We reiterate our BUY recommendation on the MSICH stock, and raise our target price to USD 775 ps.
