Daily monitor

Dniprovagonmash [DNVM, N/R], the large domestic carriage producer owned by TAS Group, plans to deliver around 1000 container platforms to Russian “VKM-Leasing” company. This delivery is going to be part of the long-term contract signed by the two parties. According to the agreement, DNVM is going to supply the Russian party with platforms made for transportation of heavy-weight containers.

Bogdan Corporation, two core parts of which are Automobile Plant “Bogdan” [LUAZ] and Cherkassy Bus Plant, increased net income 2.5 times YoY in 1Q08 to USD 8.1 mln. At the same time net revenue increased 2.4 times YoY to USD 1.08 bln. According to Corporation’s press room such results are obtained mainly due to the growth of cars area of business aimed to satisfy multiplying demand.

Carlsberg, one of the world’s top breweries, is planning to build a brewery in Kharkiv. Carlsberg has already begun talks with local Kharkiv authorities, who proposed six potential sites for the new brewery. Carlsberg, which controls Baltic Beverage Holding (BBH), the main shareholder in Slavutych [SLAV UZ, BUY], will base its decision on the proximity of a good quality water source.

Kievenergo [KIEN UZ] is set to receive USD 31mln from the Kiev city budget to compensate its gas debts to state-owned Naftogas. According to Kiev city council officials, an additional USD 120mln is to be allotted to Kievenergo by the end of 2008.

Creativ Group [CREA UZ, N/R] has announced plans to increase the volume of its net revenue to USD 206.1 mln, thanks to the opening of a new soy processing factory in July 2008. The group has invested USD 25 mln in the factory, which will have a total output capacity of 100 ths mt of soy p.a. Moreover, Creativ is constructing a new oil plant that will boast a total output capacity of 245 ths mt of oil p.a., eventually leading to an increase in the group’s capacity to 345 ths mt p.a. The opening of the new oil plant is slated for Nov.-Dec. 2008.

On June 10, Zaporizhstal [ZPST UZ, Strong BUY] submitted an official filing with the regulators disclosing a significant shareholder structure change. Namely, on June 06, Kyiv Securities Group LLC increased its stake by 10.76% to 19.62%.

Interpipe Novomoskovsk Pipe Plant [NVTR UZ, BUY] increased its pipe output 38%YoY to 143.9 thsd metric tons in 5M2008. The plant produced 32.1 thsd metric tons of pipes in May. The mill specializes in the production of welded pipes for oil and gas, water transportation and welded pipes for wider industrial applications. The company belongs to Interpipe.

The Ukrainian government has released statistics on industrial production showing real industrial output continued growing well in May, adding 8.3% YoY and 2.2% MoM. In 5M08, real industrial growth totalled 8.0% YoY, the same figure as in 4M08. After a slowdown in industrial output growth in 2005 (+3.1% YoY), the numbers accelerated to 6.2% YoY in 2006 and 10.2% YoY in 2007. We are currently observing the normalization of industrial output growth, but the numbers are nonetheless remaining high.

Turboatom [TATM, N/R] plans to increase revenues in 2008 52% YoY to USD 105 mln, TATM CEO Viktor Subotin said. He also noted that the company’s revenues for May 2007 to May 2008 amounted to USD 95 mln, which was 28.7% more than planned. According to Subotin, Turboatom secured contracts in 2007 worth a total of USD 128 mln, or double the 2006 figure. The contracts currently in the process of being finalized amount to USD 227 mln.

Dniprovagonmash [DNVM, N/R] has increased its carriage output 48% YoY in 5M08 to 400 units. Of this number, 220 were container carriages, 150 - gondola carriages and 30 - hoppers (the production of hoppers was reinstalled in 2007). Company management is further predicting stable output growth driven by the constant demand for carriages in the CIS. As of now, the company is completely back-logged.