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Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
765 149 647.60	3 602.42	1 462.31	1 031.51	4 115.22	5 076.19		834.78	881.75		564.29	433.30		150 733.06	0.00	867 763.74	0.00	1 765 865.79	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
1 835 673 222.00	2 915.43	786.24	273.67	1 279.51	1 800.85		198.17	413.28		39.13	207.13		1 019 337.10	0.00	4 441 718.68	0.00	8 862 420.81	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
17 588 723 736.00	2 829.82	855.44	745.55	1 788.94	3 390.73		193.53	1 008.73		5.56	603.89		5 187 297.05	0.00	17 436 503.80	0.00	29 125 707.89	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
10 502 680 320.00	2 476.06	1 612.43	135.14	3 340.48	4 593.72		293.33	398.83		10.10	121.94		2 286 312.69	0.00	26 333 727.29	0.00	86 129 902.58	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
2 851 967 800.00	2 480.09	275.37	110.09	4 123.41	6 020.23		76.23	298.06		156.54	150.84		473 730.70	0.00	9 568 435.58	0.00	18 907 238.13	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
10 628 787 960.00	10 528.52	6 324.86	384.42	13 037.93	13 609.00		3 844.93	2 286.19		2 412.56	1 237.95		781 011.68	0.00	4 649 127.30	0.00	8 585 797.46	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
1 595 990 317.50	2 426.27	1 008.77	895.87	1 647.64	1 761.50		126.84	160.03		-3.94	26.54		906 040.49	0.00	9 973 075.13	0.00	60 135 279.48	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
8 851 927 592.93	5 184.94	2 600.43	723.56	15 165.49	21 668.65		2 020.13	3 184.68		1 103.16	2 122.71		408 513.11	0.00	2 779 534.62	0.00	4 170 106.89	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
4 968 525 602.60	4 449.60	2 359.16	772.39	3 181.01	4 111.87		322.67	310.14		87.47	63.40		1 208 337.23	0.00	16 020 269.48	0.00	78 367 911.71	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
8 589 934 588.00	12 138.52	4 220.43	-140.99	15 107.73	18 845.61		1 861.79	2 501.18		910.56	1 417.21		455 805.60	0.00	3 434 352.76	0.00	6 061 158.61	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
1 632 087 571.72	12 694.23	8 989.34	1 669.87	7 894.43	8 039.23		1 985.65	2 013.45		467.82	267.19		203 015.41	0.00	810 593.38	0.00	6 108 340.78	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
1 296 857 743.20	674.32	433.01	-0.57	1 635.28	2 244.15		147.24	252.15		80.30	151.12		577 883.72	0.00	5 143 199.46	0.00	8 581 642.03	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
3 142 564 120.00	3 231.16	1 569.67	804.17	3 925.42	5 526.24		214.46	214.26		18.74	6.15		568 662.26	0.00	14 667 063.03	0.00	510 986 035.77	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
2 279 022 480.00	3 843.67	1 073.71	338.51	3 947.62	2 830.22		180.75	1 430.00		51.38	1 075.15		805 245.70	0.00	1 593 722.25	0.00	2 119 725.14	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
0.00													0.00	0.00	0.00	0.00	0.00	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
3 465 520 550.00	7 388.18	1 996.13	724.02	3 748.30	5 610.07		317.26	259.29		52.48	-207.10		617 732.14	0.00	13 365 425.87	0.00	-16 733 561.32	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
4 898 777 203.00	2 680.65	1 377.33	811.41	3 739.03	4 337.64		220.76	235.84		22.53	49.95		1 129 364.63	0.00	20 771 616.41	0.00	98 073 617.68	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
1 061 735 016.00	1 172.29	254.47	317.57	2 903.33	2 979.71		67.54	56.83		0.43	1.44		356 321.59	0.00	18 682 655.88	0.00	737 315 983.33	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
2 270 655 129.60	992.55	227.95	4.13	1 209.20	2 183.45		143.39	287.29		92.41	199.94		1 039 939.15	0.00	7 903 704.04	0.00	11 356 682.65	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
2 061 465 000.00	2 144.57	555.65	735.42	1 606.87	1 696.07		189.40	231.48		70.55	102.45		1 215 436.27	0.00	8 905 588.97	0.00	20 121 669.11	0.00

Capitalization, UAH	Assets, UAH mln	Fixed assets, UAH mln	Net debt, UAH mln	Revenue, UAH mln	EBITDA, UAH mln	Profit, UAH mln	P/S	EV/EBITDA	P/E
2006	2007	2008F	2006	2007	2008F	2006	2007	2008F	2007	2008F	2007	2008F	2007	2008F
73 560 576 000.00	2 931.15	1 282.16	609.79	2 406.11	2 940.03		454.47	679.96		141.63	340.81		25 020 348.77	0.00	108 183 682.29	0.00	215 840 427.22	0.00

Ticker

Issuer

Price, UAH

1 Year Target Price, UAH

Recommendation

NITR

INTERPIPE Nyzhnodniprovsky Tube-Rolling Plant

7.5000

11.50 / 2008.11.19

Accumulate / 2008.11.19

MSICH

Motor Sich

230.0000

275.00 / 2008.11.19

Hold / 2008.11.19

PGZK

South Ore Mining and Processing Plant

6.1500

4.22 / 2008.11.19

Sell / 2008.11.19

DNEN

Dniproenergo

600.0000

1 250.00 / 2008.11.19

Hold / 2008.11.19

ENMZ

Enakievo Metallurgical Plant

45.0000

335.00 / 2008.11.19

Accumulate / 2008.11.19

UNAF

Ukrnafta

112.0000

215.00 / 2008.11.19

Accumulate / 2008.11.19

DOEN

Donbasenergo

25.0000

75.55 / 2008.11.19

Accumulate / 2008.11.19

AZST

Azovstal Iron and Steel Works

0.8900

4.30 / 2008.11.19

Accumulate / 2008.11.19

CEEN

Centerenergo

6.3500

12.40 / 2008.11.19

Accumulate / 2008.11.19

MMKI

Ilyich Iron and Steel Works

0.6600

2.50 / 2008.11.19

Hold / 2008.11.19

UTEL

Ukrtelecom

0.3500

0.42 / 2008.11.19

Hold / 2008.11.19

YASK

Yasynivka Cokery Plant

0.9800

2.75 / 2008.11.19

Hold / 2008.11.19

DNON

Dniprooblenergo

100.0000

525.00 / 2008.11.19

Accumulate / 2008.11.19

KIEN

Kyivenergo

15.0000

21.70 / 2008.11.19

Hold / 2008.11.19

AVTO

Ukrainian Automobile Corporation

101.0000

530.00 / 2008.11.19

Hold / 2008.11.19

DNSS

Dniprospetsstal

1 800.0000

855.00 / 2008.11.19

Sell / 2008.11.19

AVDK

Avdiivka Cokery Plant

6.7000

12.45 / 2008.11.28

Hold / 2008.11.28

ZAEN

Zakhidenergo

289.0000

155.00 / 2008.11.19

Sell / 2008.11.19

MZVM

Mariupol Heavy Machine Building Plant

14.0000

25.00 / 2008.11.19

Hold / 2008.11.19

KVBZ

Krukivsky Carriage Works

11.3200

10.50 / 2008.11.19

Sell / 2008.11.19

SMASH

Sumy Frunze Machine Building Plant

14.2000

24.30 / 2008.11.19

Hold / 2008.11.19

PGOK

Poltava Ore Mining and Processing Plant

13.5000

45.00 / 2008.11.19

Hold / 2008.11.19

Main events:

• Ukrainian stock indices have decreased
• External background was mainly negative

Last week, Ukrainian stock indices demonstrated the descending movement. Index of Ukrainian stock exchange lost 3,93% and closed the week at the level of 1266,6 points. Weekly volume of trading of shares decreased by 30,6% and made up 34,62 million UAH.

Shares of “Ukrnafta” [UNAF] – 10,20 million UAH, “Motor Sich” [MSICH] – 5,33 million UAH and “Tsentrenergo” [CEEN] – 4,89 million UAH became the most liquid securities at Ukrainian stock exchange.

In the general background, shares of “Azovstal” [AZST] (growth by 2,7%), “Ukrsotsbank” [USCB] (growth by 0,5%) and “Avdeyevskiy by-product coke plant” [AVDK] (decrease by 0,4%) looked better than the others.

Securities of “Motor Sich” (decrease by 10,4%), “Tsentrenergo” (decrease by 3,7%) and “Raiffaisen bank Aval” [BAVL] (decrease by 3,7%) looked worse than the market.

The main influence on the character of sales at domestic stock platforms was caused by internal news: decision of the Cabinet of Ministers of Ukraine to implement not only the personal sanctions against Russian natural persons and companies, but also preparation of the bill (№4453а) about the set of 29 sanctions which can be applied to the country-aggressor (freezing of the assets, limitation of trading operations, limitation or full stop of transit of resources, flights, shipping operations, prohibition of participation in privatization, prohibition of usage of radio-frequency resource). The list of sanctions includes the stoppage of fulfillment of financial obligations, cancellation or stoppage of the licenses and permits, including those for usage of subsoil, limitation for post services, and retransmission of tele- and radio channels.
The situation in the zone of ATO continued to cause the negative influence on the sales at domestic stock platforms. Increase of activity of military actions and destruction of industrial potential of the region of Donbass and its infrastructure “pressed” the quotations of the companies from the zone of ATO downwards. Macro statistics of Ukraine didn’t make the investors glad either – drop of GDP in 2Q14 increased up to -4,7%.

Shares of “Motor Sich” underwent the biggest sales. Investors are afraid that the company will have to fully stop the export to Russian Federation (it’s about 70% of volumes of production) because of new sanctions of Ukraine against Russia.

Securities of the bank sector remained under pressure of problems of continuing withdrawal of the deposits and worsening of quality of the assets (according to the results of June, the share of problem credits increased by 0.2%). Borrowers of banks in Donetsk and Lugansk regions almost stopped servicing their credits.

Forecast and recommendations

Speculative character of deals in remaining low liquidity environment furthered the high volatility of trading. We assume that index UX will close the current week within the scope of 1220-1280p.

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