OREANDA-NEWS. April 1, 2010. According to a recent press service release, Luhanskteplovoz <LTPL UK HOLD> has decreased sales by 61% to UAH 523.5mn and fixed net losses of UAH 157.4mn in 2009 against UAH 1.1mn net income in 2008.

Such a deterioration of LTPL financial performance is in line with Millennium Capital’s expectations and has been caused by a decline in demand for the Company production. The total output for the period was cut by more than 50% (it was 36 diesel locomotive sections for Russian Railways and two electric locomotives for Ukrzaliznytsia). According to our forecasts, the estimated sales level of the Company will be USD 262.6mn in 2010. Thus, LTPL estimated fair price according to relative peers valuation is USD 0.83 per share (the upside to the current price is 15.67%).