February 11, 2008Motor Sich: Fundamentals Still Strong
Motor Sich [MSICH], the sole Ukrainian manufacturer of engines for helicopters and jet airplanes, has demonstrated an impressive improvement of its financials by posting a 6.2% YoY net income increase, according to preliminary 2007 financials. In terms of its production potential, the company is also in quite good shape. However, one of the risks today remains the vague perspective of the Russian market, on which Motor Sich has a long history of supplying its helicopter engines. Motor Sich’s stock displayed spectacular growth in 2007, with the market positively reacting to the company’s improving financials and the latest achievements in engine building developments, and while its profitability potential is still not depleted, investors tend to slightly overreact to any news related to the company’s Russian markets.