Kety: Management forecast could be increased after 3Q07 results

Yesterday, during analysts meeting, CFO of Kety, Adam Piela, stated that the annual management forecast of net profit of PLN 98m could be increased after 3Q07 results. This news is highlighted in today’s press. He added that if net profit exceeds PLN 100m the dividend for 2007 could go up to PLN 5 per share from PLN 4 per share in the last two years.

Our view: This information is not a surprise. Our reported net profit forecast of PLN 104.2m is 6.3% above the management guidance. Main factors contributing to better result include (i) decrease of aluminium import duty (ii) acquisition of Metalplast Zlotow (iii) persisting strong demand both domestically and abroad (iv) start of operations in the Ukraine. Apart from that the analysts meeting, as expected, has not provided any new material information about Kety’s business.